U.S. Adviser Says Trade Deal With Canada Near Amid New Tariffs
A senior U.S. economic adviser said negotiations with Canada are progressing, even as the White House announced fresh 50% tariffs on a range of Canadian products.
National Economic Council Director Kevin Hassett told Fox News Sunday that the United States and Canada are "very close" to reaching a trade agreement, noting that recent talks between Commerce Secretary Howard Lutnick and his Canadian counterparts have accelerated.
"The negotiations have picked up. They're gathering steam," Hassett said. He attributed the delay in finalising a deal to the recent Canadian election and a failed referendum in Alberta, which he said made negotiations "essentially impossible". President Donald Trump also indicated on Friday that a deal was near and that his team holds "all the cards." Later that day, the White House announced a new set of 50% tariffs on Canadian goods, adding items such as cocoa powder, vinyl flooring and shampoos while exempting others like seaweed, packing boxes and certain plywood sheets. Republican Senator Susan Collins, who is seeking re-election, highlighted the removal of tariffs on products important to Maine's agricultural sector and described Canada as "America's neighbour, ally, and largest trading partner." The tariff changes, set to take effect at the end of the month, join existing duties on metals, lumber, autos and outright bans on beer, liquor and motorcycles. Jean-François Dufresne, CEO of Canadian hardwood flooring producer Preverco, warned that the new 50% tariff on his product could cut his company's business by a quarter, and he has sought a meeting with Finance Minister François-Philippe Champagne. Canada's trade minister Dominic LeBlanc said the government will review the measures and remains ready to work constructively with the United States toward a mutually beneficial trading relationship.