U.S. President Donald Trump’s trade czar on Wednesday defended the plan to impose new 50 per cent tariffs on Canada, claiming the goal is to “improve our trading relationship,” with work ongoing to develop “options” on renewing the Canada-U.S. Mexico Agreement on free trade (CUSMA).
Speaking at a U.S. Senate finance committee hearing, U.S. Trade Representative Jamieson Greer said he’s hopeful those options, which he called “interim arrangements” to address outstanding issues with the trade pact, will be presented to the leaders of all three countries before the end of this year.
“I’m hopeful that before the end of the year we can have at least options for President Trump and the leaders of Canada and Mexico to consider potential interim arrangements for things that Canada can do on the one hand and Mexico can do on the other hand to strengthen enforcement, to improve their commitments toward us and to make sure that we’re managing all of the trade issues,” Greer said.
Those issues include labour and environmental enforcement, as well as rules of origin for products like autos produced in North America to prevent other countries from importing components into the continent tariff-free. The Trump administration wants to increase the amount of American-made components necessary for a product to qualify under CUSMA free trade provisions.
“We want to improve our trading relationship with Canada and Mexico,” Greer said.
At the start of July, Greer said the U.S. would not renew CUSMA for another 16-year term despite calls from Canada and Mexico to do so.
That decision triggered annual rolling reviews that could continue for up to a decade, after which the agreement would expire unless all three countries agree to an extension.
In a statement Tuesday after meeting with the federal advisory committee on Canada-U.S. economic relations, Canada-U.S. Trade Minister Dominic LeBlanc said Canada “has put forward detailed and comprehensive proposals to resolve trade disputes and modernize CUSMA.”
LeBlanc told the panel that talks with the U.S. are expected to “continue and deepen” in the coming weeks.
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Uncertainty about the future of the trade agreement has caused anxiety in business communities in all three countries even as negotiations continue.
The talks were further thrown into question Monday, when Trump announced he would impose 50 per cent tariffs on a swath of Canadian goods in one-month’s time.
The move was made in response to retaliatory measures Canada has taken over Trump’s trade war, including reciprocal auto tariffs, provincial and territorial boycotts on U.S. alcohol, and Canada’s supply management system for dairy.
Those tariffs were the focus of several questions from Democratic senators who urged the administration to reconsider, warning of higher prices for American consumers and harm to businesses.
Greer acknowledged under questioning from Sen. Ron Wyden of Oregon that “a small handful” of Canadian products will be tariffed higher than China if and when the new 50 per cent tariffs come into effect.
Yet he said the move was merely an effort to rebalance trade with Canada and was not intended to cut off access in either direction.
“We’re keeping the market access in Canada and Mexico,” he told the committee.
“We’re trying to balance this relationship, have as much trade, liberal trade in North America as possible while protecting our producers. It’s not going to happen overnight. We didn’t get this problem overnight. It won’t be fixed overnight.”
Prime Minister Mark Carney said Tuesday that Canada was weighing “all options” to respond if the new tariffs go ahead on Aug. 19. Some political leaders like Ontario Premier Doug Ford have called for “dollar for dollar” reciprocal tariffs in retaliation.
Greer, however, said he hasn’t heard of any plans to retaliate.
“I talked with my Canadian counterpart yesterday, they did not say they’re going to retaliate on what they’re doing,” he said.
Republicans on the committee, meanwhile, expressed ongoing anger and confusion with the Canadian boycotts on U.S. alcohol, without mentioning they were done in response to Trump’s initial tariffs on Canada over a declared fentanyl “emergency” last year.
Premiers gathering for a meeting in Charlottetown this week have vowed to maintain the alcohol boycotts despite the new tariff threat.
“We’re so frustrated by the actions the Canadians took to pull U.S. distilled spirits from the shelves,” said Sen. Marsha Blackburn of Tennessee, a major whiskey-producing state.
“How do we get the Canadians to put Jack Daniel’s back on their shelves rather than allowing them to continue talking this thing and not reaching a resolution?”
Other administration officials on Wednesday defended Trump’s tariff threat against Canada.
In an op-ed published in the National Post, White House trade advisor Peter Navarro said the lists of products affected by the proposed tariffs would offset the “burden” and “damage” to American commerce caused by Canada’s retaliatory actions.
“This is reciprocal trade enforcement, not economic aggression,” he wrote.
“Ottawa will argue that these actions retaliated against American tariffs. That misses the law and economics. American Section 232 auto tariffs operate under a national-security framework and credit American content. Canada’s system singles out U.S. commerce while treating competing foreign commerce more favorably.”
Navarro added that Section 338 of the U.S. Trade Act of 1930, the statute Trump is using to impose the new tariffs, “was written for such conduct.”
The US broke the Canada US Mexico trade agreement that they signed. Greer and Trump expect us to do nothing. The Carney government is prepared to respond at a time and date of Canada’s choosing. Go Canada!
Greer is doing a great job and looking after American interests. He isn’t a Canadian. Meanwhile Carney is lining his own pockets
Canada should add an appropriate excise tax on all energy exports and use the money generated to find pipelines to all three coasts, upgrade electrical infrastructure. All materials labour and engineering Canadian
US improves relationships through threats, extortion and violence – thanks for the clarification, Greer. GIDA
Wow, lots of trolls on here from the Joke Country that’s never won a war. Trump is just slightly stupider than his voters in the United Mistakes of America. Canada will always win as long as you don’t have Lethbridge Liberace at the helm.
@Ike Respectfully, your take is over the top.
Everyone needs to prepare for a massive economic depression. Save all the money you can in either USD or Euros, exchange money asap because the banking system may collapse, gold won’t help because there won’t be any place to exchange it. Unemployment could reach 25-40%, businesses will close rapidly and each industry that closes or moves south will destroy all local small businesses.
There is No resolution for your alcohol, you imposed tariffs. And imposing more tarifs for the the same reason 2 times will only prove USA is a scam tarif Russian scam. China will never accept it, why should Canada. Say no to USA Dictators.
MAGA ALBERTAN! Never a canadian turd in a toilet
Hahaha listen to liberal idiots make TRUMP the bad guy! Does your brainless head hurt?
Trump put tariffs on every country! China and Canada are the ONLY two countries that retaliated!
Elbows up retards!
Eat carnys anus out liberal rats
Suck carnys csck libturds
“We want to improve our trading relationship with Canada and Mexico,” Greer said.”
You would not have to if US admin behaviour over the past 18 months was reasonable and respectful.
Catney is lying to Canadians about the deals he is making while bad mouthing the people he is supposed to be making them with
Extremely childish and unprofessional.
Listen to the Poilievre conservatives defending Trump. Their loyalty is to Trump, the USA, and Poilievre in that order.
In case any senile Boomers were wondering…
We intend to take a flamethrower to your legacy.
Get fucked, and consider MAiD.
Elbows up only ratifies the death of British opinions due to Oxford University and Liberal douchefags.
Death is upon us that consider ourselves Liberal.
We didn’t listen!
@Diane Johnston – No one cares about illegal immigrants.
If Carney wants to literally sacrifice his heart and soul…Otherwise he’s wasting everyone’s rime and he knows it.
Polls show that 💯% of Mexicans regret ever voting for a man that wants them killed off lol
Best of luck!
Carney, Sugar Daddy Doug and Eby are the bad guys in all of this. Trump is just an innocent bystander and has done absolutely nothing to Canada that we didn’t do first to the United States.
Are we back to elbows up again? My elbows wanna know because once again they are confused.
Trump is doing what is in USAs best interest. Too bad Carney isn’t doing the same for Canada.
Put an import tax on electricity and inforce it. That alone will make greer and trump rethink there plan
Hahahah listen to these Conservative idiots trying to make Carney and Eby look like the “Bad guys” in all of this. As if Trump is some f**king angel and has done absolutely nothing to Canada during his delusional tariff tirade. Further proof that these Conservative/MAGA supporters in Canada are nothing more than traitors to Canada
Tariffs will be CUSMA trading points. Using whatever advantage they have, the countries will negotiate for an acceptable “win”.
Avoiding american goods weakens their negotiating position.
Trump has been telling Carney and the idiots what are the issues and sticking points for some time. In the mean time dairy cartels have been declared non negotiable, Ford won’t shut up, we are blocking American booze, and Eby shoots his mouth off. And Carney the big negotiator couldn’t negotiate himself out of a paper bag? And Canadians are so surprised? And yet the comments below think they can fight back being the flea on the camels back? OMG!
One does not negotiate with threats. Canada should just sit back until the courts straighten Trump out again.
Navarro does not understand that ‘offsetting’ is another word for escalating. It is precisely aggression. Trump and his minions should be thinking o how they can reduce their aggression.
They all need a lesson on Canadian politics. It is not Canada that took Jack Daniels off the shelf, it was the provinces, as sales agents. They want us to start buying US? Then reduce the tariffs and sign the CUMSA agreement.
Maybe we should show them federal boycotts. Show them just how more serious and encompassing that would be. – and announce it the same way Trump does. “in retaliation for his 50% tariff, we will stop electricity, oil and gas, flowing to the US”.
Carney claimed to know how to deal with Trump. Nothing so far.
So orange man is out to destroy Canada’s economy and he expects the government to do nothing what a total idiot the whole Administration is delusional