Trump sees no urgency for Canada deal as trade dispute deepens, USTR says
SPY•The Trump administration is comfortable maintaining its trade standoff with Canada, U.S. Trade Representative Jamieson Greer said. New U.S. import bans on Canadian goods take effect next week, while threatened tariffs on Canadian autos, parts and steel could rise to 50% in January.
1. No urgency to reach deal
Greer said the administration was comfortable with the current standoff and saw no urgency to reach a deal with Canada, despite ongoing conversations about potential agreements. He told CNBC that trade between the countries remained strong, including exchanges of oil, gas, potash and agricultural products.
2. Tariffs and import bans
U.S. import bans taking effect next week cover a broad range of Canadian goods, including alcoholic beverages, motorcycles and dairy products. Washington has threatened to raise tariffs on Canadian autos, parts and steel to 50% in January; Canada’s retaliatory tariffs on U.S. goods took effect earlier this month, following U.S. tariffs on about $20 billion of Canadian goods.
3. Trade agreement in question
The dispute has raised questions about the future of the U.S.-Mexico-Canada trade agreement. Some experts think the administration may seek a deal with Mexico first; Mexican officials said the next round of talks could take place in October.
