Trump Signals Canada Trade Deal Could Come 'Fairly Soon'
MacroGeopolitics
President Trump said a deal with Canada over their trade dispute could be reached "fairly soon," pushing back on speculation that the United States would withdraw from the US-Mexico-Canada Agreement. Speaking to reporters after meeting Irish Prime Minister Martin in Dublin, Trump was asked whether he was considering leaving USMCA and said the US has a "great relationship" with Mexico and actually has a good relationship with Canada as well. Trump pointed out that Canada imposes "400% tariffs" on American farmers, among other measures, and argued those measures need to be reviewed and the high tariffs eliminated. The clash between the two countries goes beyond tariffs, expanding to the point of threatening supply chains that major industries such as autos depend on. After comprehensive trade talks collapsed at the last minute in August, Trump imposed a 50% tariff on billions of dollars' worth of Canadian products, and Canadian Prime Minister Carney launched retaliatory tariffs on September 8, raising duties on many US steel products from 25% to 50%. Carney has recently said, however, that the impact of the latest US measures has been "limited" overall and signaled he is unlikely to take new retaliatory steps, raising hopes that the two countries are easing tensions and looking for a way out of the standoff. The trade war with Canada poses a major risk for Trump ahead of November's midterm elections. The tit-for-tat tariffs could further worsen the high prices voters are worried about and create headwinds for Republicans in Senate races, especially in states bordering Canada such as Michigan.
