U.S. Adviser Says Canada Trade Deal Is Near Even as White House Slaps on More Tariffs
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A senior U.S. economic adviser said talks with Canada are moving ahead, even as the White House imposed fresh 50% tariffs on a wide range of Canadian products in a move critics see as punitive and chaotic.
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 blamed the delay in finalising a deal on the recent Canadian election and a failed referendum in Alberta, casting those political events as reasons negotiations were "essentially impossible". President Donald Trump also said on Friday that a deal was near and that his team holds "all the cards," a posture that underscores the White House’s hardball approach. 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.