By David Shepardson
WASHINGTON, Sept 25 (Reuters) – President Donald Trump’s administration is comfortable maintaining its trade standoff with Canada even as new US import bans on Canadian products take effect next week and Washington threatens 50% tariffs on Canadian autos, parts and steel from January, US Trade Representative Jamieson Greer said on Friday.
His comments to CNBC signal Washington sees little need to compromise despite a deepening dispute that has strained relations between the longtime allies, triggered retaliation on both sides of the border and raised fresh questions about the future of the US-Mexico-Canada trade agreement.
The looming US import bans are on a broad range of Canadian goods, including alcoholic beverages, motorcycles and dairy products. The January increase on tariffs to 50% could carry significant consequences for North American auto production.
Canada’s own retaliatory tariffs on US goods took effect earlier this month. Canadian tariffs followed 50% tariffs that the US imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed.
“We’re still getting what we need from them in terms of oil, gas, potash, all of these things. We’re shipping (agricultural products) back and forth across the border, so there’s still a lot of strong trade between the two countries,” Greer told CNBC. “We’re comfortable with where we are. … They call us now and then, and we have good conversations about potential deals. But it’s not – there’s no urgency on our side, I would say.”
The Canadian Embassy in Washington did not immediately comment.
The breakdown has widened a rift between the longtime allies, who have blamed each other for the failed talks, spurred Canadian Prime Minister Mark Carney to urge a further shift away from Canada’s biggest trading partner, and cast doubt on the viability of the US-Mexico-Canada Agreement.
Some experts think the Trump administration wants to first reach a deal with Mexico, which could give the US more leverage to get a better agreement with Canada. The next round of talks with Mexico could occur in October, Mexican officials said this week.
(Reporting by David Shepardson and Katharine Jackson; Editing by Susan Heavey and Howard Goller)
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