U.S. ‘not going to tolerate’ retaliation from Canada in trade talks, Greer says

OTTAWA – United States Trade Representative Jamieson Greer said the U.S. will not tolerate retaliation from Canada but is hopeful Canadians may take a more conciliatory approach.

“If a country retaliates against us, we’re obviously not going to tolerate that,” said Greer, during a press conference in Des Moine, Iowa, on Friday. “We’ll take action. My sense is the Canadians, they want to have a more conciliatory approach, but we’ll see.”

Canada-U.S. Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette have met with Greer several times over the last several weeks, in the hopes of making a deal that would see Canada avoid President Donald Trump’s latest tariff threat on $29 billion worth of Canadian goods.

Canada is also looking for relief on Section 232 tariffs on Canadian autos, lumber, steel and aluminum. Currently there are 50 per cent tariffs on primary steel, aluminum and copper products, 25 per cent tariffs on autos, and 10 per cent tariffs on softwood lumber.

Trade talks have ramped up between the two sides in recent weeks after Trump threatened to impose a 50 per cent tariff on Canadian goods effective Aug. 19, using powers under Section 338 of the Smoot-Hawley Tariff Act.

Prime Minister Mark Carney has not ruled out retaliation, should the U.S. follow through on the new tariffs.

Sources familiar with the negotiations said Canada has made it clear to the U.S. that should the tariffs go through, it would be difficult to make any trade deal due to domestic pressures.

Greer told reporters on Friday that the issues related to U.S. alcohol boycotts, quotas for the U.S. under Canada’s dairy supply management system and procurement rules that must “be resolved” for Canada to avoid Section 338 tariffs.

One source familiar with talks said a proposal is expected to be presented to Trump on Monday.

Greer told CBC News on Thursday that “options” will be presented to both Carney and Trump.

Carney is on vacation in Italy until Aug. 17, but the prime minister’s office said he has remained in contact with officials regarding the trade talks.

LeBlanc is expected to brief the federal government’s Advisory Committee on Canada-U.S. Economic Relations on Friday afternoon.

National Post

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