Tuesday, 02 January 2024 12:17 GMT

Trump Signals Fair Trade Discussions with Canada, Tariffs to Stay


(MENAFN) President Donald Trump signaled on Tuesday that while the United States intends to treat Canada “fairly” in trade discussions, existing tariffs are unlikely to be fully lifted, citing longstanding reciprocal duties between the two nations.

During a meeting at the White House with Canadian Prime Minister Mark Carney, Trump emphasized the historic presence of tariffs between the two neighbors and accused Canada of imposing steep levies on U.S. agricultural goods.

“We’re going to have tariffs between Canada, and you know they have them with us,” Trump told reporters in the Oval Office. “We’re going to treat people fairly. We’re going to especially treat Canada fairly. But I can’t believe it’s taken so long where we get charged and don’t charge them.”

The president added that trade issues, including tariffs, would be discussed privately, but called the situation “a mutual thing.”

While other U.S. allies — including the UK, South Korea, and Japan — have reached tariff reduction agreements under Trump’s administration, Canada remains outside that circle. Ottawa currently faces a 35% tariff on most exports to the U.S., a rate established through a presidential order early in Trump’s term.

Responding to questions about why a deal with Canada had yet to materialize, especially after the U.S. reached accords with the UK and EU, Trump suggested geography plays a role in the complexity.

“Because they’re not located right next to each other. You know, it makes it, in many cases, it’s much better and easier,” he said, describing the Canada-U.S. arrangement as particularly intricate. “It’s a complicated agreement, more complicated, maybe, than any other agreement we have on trade, because, you know, we have natural conflict. We also have mutual love. You know, we have great love for each other.”

Prime Minister Carney, who assumed office earlier this year, highlighted the depth of U.S.-Canada economic ties and expressed optimism about reaching a mutually beneficial agreement.

“We do a lot of trade going across the border, where we’re cooperating,” Carney said. “There are areas, as the president just said, where ... we compete. There are areas where we compete, and it’s in those areas where we have to come to an agreement that works. But there are more areas where we are stronger together, and that’s what we’re focused on, and we’re going to get the right deal, right deal for America, right deal, obviously, from my perspective, for Canada.”

According to Carney, Canada stands as the United States’ second-largest trading partner and the top source of foreign investment, totaling half a trillion dollars over the last five years.

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