Canada Warns U.S. Tariffs Risk Halting Trade Talks
Canada's chief trade negotiator warned U.S. counterparts that imposing new tariffs on August 19 would create a "cliff" that could halt negotiations. The move also risks triggering Canadian retaliation and escalating the trade dispute.
Key takeaways
- Canada's chief trade negotiator warned that U.S. tariffs scheduled for August 19 could halt ongoing trade negotiations.
- The negotiator cautioned that Canada would be compelled to retaliate if the tariffs are imposed, potentially escalating the trade dispute.
- Canada's Trade Minister Dominic LeBlanc is actively engaged in discussions in Washington to avert new levies and reduce existing ones.
Canada's top trade negotiator has signaled to U.S. officials that impending tariffs could abruptly end ongoing trade talks between the two countries. The warning was delivered last week in Washington, D.C., by Janice Charette, Canada's chief trade negotiator to the United States, to Jamieson Greer, the United States Trade Representative.
Charette reportedly described the potential imposition of new tariffs as a "cliff" that would halt negotiation progress. She also cautioned about the potential public and political backlash in Canada, suggesting the federal government would lose the ability to negotiate effectively if tariffs are enacted.
President Donald Trump has stated his intention to impose 50 percent tariffs on approximately $20 billion worth of Canadian goods on August 19. These proposed levies would affect a variety of products, including some currently covered by the existing free trade agreement.
Sources briefed on the discussions indicated that Charette also informed Greer that Canada would be compelled to retaliate if the tariffs are imposed, a move that could escalate the trade dispute. Greer reportedly acknowledged Charette's message and the political challenges such tariffs would present in Canada.
Canadian Trade Minister Dominic LeBlanc has been engaged in meetings in Washington to negotiate a deal to avert these new tariffs and reduce existing ones on autos, steel, aluminum, and forestry products. LeBlanc met with Charette and Greer again on Tuesday, continuing efforts to reach an agreement before the August 19 deadline.
Key Facts
- Canada's chief trade negotiator, Janice Charette, warned U.S. counterparts that imposing new tariffs on August 19 could halt negotiations.
- The warning was delivered to United States Trade Representative Jamieson Greer.
- President Donald Trump has threatened to impose 50 percent tariffs on $20 billion of Canadian goods by August 19.
- Canada's Trade Minister Dominic LeBlanc is also involved in negotiations in Washington to avoid new levies.
- Charette reportedly stated that Canada would be forced to retaliate if the tariffs are imposed.
Sources reviewed
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