Canada needs to scrap its retaliatory trade measures against U.S. products to avoid new tariffs from the White House that are set to take effect next week, U.S. Trade Representative Jamieson Greer said.
Greer, speaking to reporters at the Iowa State Fair on Friday, emphasized that the U.S. wants Canadian provinces to reverse their bans on American alcohol sales, which were implemented last year after U.S. President Donald Trump put tariffs on steel, aluminum and autos. He also pointed to Canadian protectionism on dairy and procurement rules as issues that must be addressed.
“Any potential resolution has to include all of these, or a pathway forward for them,” Greer said. Trump’s latest tariff threat is specifically a response to Canadian retaliation, “so those are things that would have to be resolved.”
The two sides have held intensive talks in Washington ahead of the Aug. 19 deadline. That’s the date on which the U.S. has said it will impose 50 per cent duties on an additional US$20 billion worth of goods imported from Canada.
Greer described the talks as “constructive” and said they are addressing a large number of trade issues, including some that go back decades.
“For us, this is not a trade war. We have domestic supply chains we’re trying to protect and support,” Greer said. “If a country retaliates against us, we’re obviously not going to tolerate that. We’ll take action. My sense is the Canadians want to have a more conciliatory approach, but we’ll see.”
Dominic LeBlanc, Canada’s minister responsible for U.S. trade, and Janice Charette, the country’s chief trade negotiator, remain in Washington and are scheduled to brief Canadian provincial leaders and a business advisory council later on Friday.