Canada and U.S. Agree to Accelerate Trade Talks After New Tariffs Announced
Justin Trudeau said he and President Donald Trump will speed up negotiations on a new North American trade pact following the U.S. announcement of 50% tariffs on many Canadian imports.
Justin Trudeau said on Tuesday that he and U.S. President Donald Trump have agreed to deepen and accelerate negotiations on a trade agreement involving Canada, the United States and Mexico. The agreement discussion follows the U.S. administration's plan to impose 50% tariffs on most Canadian goods, a measure set to take effect 30 days after its announcement.
Trudeau told reporters in Ottawa, “I spoke this morning with the U.S. president and we agreed to deepen and speed up our negotiations over the next few weeks. Canada will do all that is necessary to support our jobs, our workers, our farmers and to make Canada stronger, more independent and more resilient.”
The tariffs, which exclude energy products, potash, fish and critical minerals, would affect roughly $28 billion in Canadian exports to the United States, about 0.8% of Canada’s economy, according to Bank of Montreal senior economist Robert Kavcic. The affected items include honey, liquor, cement, hockey sticks and a range of chemicals, plastics, electronics and industrial equipment.
Provincial leaders expressed concern. British Columbia Premier David Eby called the U.S. approach “desperate and flailing,” adding that it would hurt families in his province. Saskatchewan Premier Scott Moe said the tariffs would raise costs for families and businesses on both sides of the border. Ontario Premier Doug Ford urged Canada to adopt a more offensive stance in the negotiations.
President Trump told reporters he “loves the people of Canada” but claimed the country needs the United States to survive, reiterating complaints about Canadian forest management and previous trade disputes.
The United States has not renewed the 2020 United States-Mexico-Canada Agreement, prompting a new round of talks that could extend until 2036. Trudeau said provincial decisions on the ban of U.S. alcohol sales will remain with the provinces, and British Columbia’s Premier reaffirmed that the ban will stay in place.