President Donald Trump on Wednesday (local time) said the United States and Canada were close to finalising a trade agreement, days after he announced a three-day pause in implementing the 50 per cent tariffs on goods coming from its northern neighbour.
President Trump said the agreement was “very fair” to both sides and predicted US farmers and manufacturers would benefit. The tariffs on about $ 20 billion worth of Canadian imports have been postponed until 12:01 am Saturday.
Asked whether the US would lower tariffs on steel and aluminum to get tariffs reduced, Trump said, "Well, we're looking at that. Yeah, yeah."
"We may bring some of the tariffs down to a level where other countries are, because Canada was paying a higher tariff. Canada was paying us a higher tariff," he added.
What US and Canada have agreed on
While details of the agreement remain vague, Trump claimed Canada had agreed to end tariffs on US agricultural products. “The tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated. Down to zero,” he said.
According to an AP report, Canada currently allows a set amount of dairy imports at low tariffs. Once imports exceed that limit, much higher tariffs apply. The US says Canada’s "supply management system makes it harder for American dairy producers to get full access to the Canadian market.
Trump said American farmers would no longer face tariffs under the proposed agreement.
"We're getting zero for our farmers. You know, farmers have been hurt very badly by Canada, and they won't be paying any tariffs anymore," Trump told reporters.
Canada’s dairy sector in focus
A senior Canadian official also told AP that Canada and the United States moved closer Wednesday to finalizing a trade agreement that would avert the US tariffs.
The senior Canadian official said the emerging agreement would provide greater certainty, protect Canada’s dairy sector and jobs threatened by the new tariffs, and preserve what Ottawa considers favorable trade terms with the United States.
Prime Minister Mark Carney has asked provincial premiers to return US alcohol to store shelves, Nova Scotia Premier Tim Houston said, a step aimed at addressing one of the Trump administration’s key trade complaints. Houston and Saskatchewan Premier Scott Moe, both conservatives, voiced support for the direction of the talks, though Houston said whether Canadians would actually buy US alcohol again “is a whole other discussion.”
Trump's 50 per cent tariff threat
Last month, Trump invoked a never-before-used legal authority, dating back to the Great Depression, to announce that the United States would slap 50per cent tariffs on USD 20 billion, or about 5 per cent, of Canadian exports to the United States, ranging from hockey sticks to tongue depressors.
Trump claimed that Canada discriminates against American exports of autos, alcohol and cheese. The US president is also furious that Canada and China were the only countries that punched back with retaliatory tariffs of their own when he slapped levies on their products.
