Canada must remove its retaliatory measures against U.S. trade actions to avoid new tariffs from the White House set to take effect next week. This was stated by U.S. Trade Representative Jamieson Greer.
Speaking to journalists at the Iowa State Fair on Friday, Greer emphasized that the U.S. demands Canadian provinces lift bans on the sale of American alcohol. These bans were introduced last year after President Donald Trump imposed tariffs on steel, aluminum, and automobiles.
Key U.S. demands
He also noted that Canadian protectionism in the dairy industry and government procurement rules are issues that need to be resolved. “Any potential solution must include all these issues or a path to their resolution,” Greer said. According to him, Trump’s latest tariff threat is a response to Canada’s retaliatory measures, “so these issues must be addressed.”
Both sides held intensive negotiations in Washington ahead of the August 19 deadline. On this day, the U.S. announced it would impose 50% tariffs on an additional $20 billion worth of goods imported from Canada.
Deadline and negotiation prospects
Greer described the negotiations as “constructive” and noted that they cover a large number of trade issues, some of which arose decades ago. “This is not a trade war for us. We are trying to protect and support our domestic supply chains,” Greer said. “If a country takes retaliatory measures against us, we obviously will not tolerate it. We will take action. It seems to me that the Canadians want a more conciliatory approach, but we’ll see.”
Canada’s Minister of Trade with the U.S., Dominic LeBlanc, and the country’s chief trade negotiator, Janice Charrette, remain in Washington. Later on Friday, they are to brief leaders of Canadian provinces and a business advisory council.
Source: Bloomberg
