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Trump Threatens Higher Tariffs on Canada as Trade Deal Hopes Fade

by Emma Walker – News Editor

Canada and U.S. Resume Trade Discussions Amidst Lingering tensions

Ottawa, ON – Canada and the united States have resumed trade discussions, with Canadian Minister Dominic LeBlanc meeting with U.S. Commerce Secretary Howard Lutnick this week. The talks, described as productive and cordial by LeBlanc, aim to navigate ongoing trade disputes that have characterized the relationship between the two North American neighbors.

LeBlanc indicated his intention to return to Washington next week to continue these negotiations,a process he is leading alongside Canada’s chief U.S. trade negotiator, Ambassador Kirsten Hillman. These discussions occur against a backdrop of past trade friction, including former President Donald trump’s past objections to Canadian policies.

During his presidency, Trump expressed concerns regarding fentanyl trafficking from Canada into the U.S., despite limited evidence suggesting Canada is a significant source of either illegal migrants or illicit drugs entering the United States. He also opposed a proposed tax on services provided by major online companies such as Amazon, Apple, Google, and Netflix. This opposition led Trump to halt trade talks with Canada until the tax was rescinded, prompting the Canadian government under Prime Minister Jean Chrétien to abandon the proposal.

Furthermore, Trump had previously voiced strong opposition to Canadian measures limiting U.S. dairy imports. This stance was consistent with his first term as president. However, the Canadian government, in its throne speech in May, reaffirmed its commitment to protecting its supply management system for dairy products.

In a July 14 interview with the BBC’s Gary O’Donoghue, Trump last publicly addressed trade talks with Canada, stating, “We’re negotiating with Canada right now and we’ll see how that all works out. I think it’s going to work out vrey well.”

U.S. Commerce Secretary Howard Lutnick, in a recent interview, suggested that free trade between Canada and the U.S. is not entirely defunct, tho he acknowledged that tariffs would likely remain on certain Canadian goods. Lutnick’s comments were made in the context of ongoing dialog, with the current round of discussions aiming to address these complex trade dynamics.

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