Trump: Not Focused on Talks With Canada; Tariffs Might Stay

CEO of Global Automakers of Canada Decries Trump Administration's Recent Deals With Japan, UK

Shipping containers
Shipping containers at the Port of Montreal. (Andrej Ivanov/Bloomberg)

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President Donald Trump said trade talks with Canada are not a focus for his administration right now, and instead of negotiating a deal, he may decide to just leave import taxes in place.

鈥淲e haven鈥檛 really had a lot of luck with Canada,鈥 Trump told reporters July 25.

鈥淚 think Canada could be one where they鈥檒l just pay tariffs, not really a negotiation,鈥 he added. 鈥淲e don鈥檛 have a deal with Canada. We haven鈥檛 been focused on that.鈥



The Canadian dollar had little immediate reaction to the remarks, which were similar to previous comments by the president. It was down 0.6% on the day to C$1.3717 per U.S. dollar as of 1:06 p.m. in New York.

The president鈥檚 statements come a day after Canadian officials held a series of meetings in Washington with Republican senators. Commerce Secretary Howard Lutnick also met July 23 with Dominic LeBlanc, the Canadian minister in charge of U.S. trade.

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Mark Carney

颁补谤苍别测听

Prime Minister Mark Carney has also lowered expectations recently of reaching a deal with Trump by Aug. 1, saying Canada won鈥檛 sign a bad agreement just to get one done.

Canadian officials are under less pressure to get a trade deal immediately because most products are exempt from U.S. tariffs if they鈥檙e shipped under the rules of the U.S.-Mexico-Canada Agreement, the pact Trump signed in his first term.

However, Trump has imposed steep new taxes on imports of Canadian steel, aluminum and autos, and Carney鈥檚 team has focused on trying to get those eliminated or reduced.

鈥淚 think it is clear that the U.S. is focused on some of the larger deals it would like to get done, for example the EU and India,鈥 said David Adams, CEO of Global Automakers of Canada, which represents two Japanese companies that build vehicles in Canada, Toyota Motor Corp. and Honda Motor Co., as well as other automakers such as BMW.

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But Adams lambasted the Trump administration鈥檚 recent agreements with Japan and U.K., which would give an advantage to cars and trucks assembled in those countries versus certain Canadian- or Mexican-made vehicles.

鈥淚t is somewhat unconscionable that the U.K. and Japan would have lower tariff rates applied to them than the U.S. free trade agreement partners whose vehicles have at least 50% U.S. content in them,鈥 he said in an email. Honda and Toyota combined represent the majority of Canada鈥檚 vehicle production.

The U.S. and Canada have one of the world鈥檚 largest bilateral trading relationships. The U.S. imported about $477 billion of goods and services from Canada last year and exported $441 billion to Canada.