With midterms looming, Canada and US struggle to make progress in trade talks over tariffs
Talks Show Limited Movement
A Canadian official familiar with the discussions said Wednesday that trade negotiations between Canada and the United States had advanced only modestly. The talks concern easing American tariffs on Canadian automobiles and steel.
On Monday, Prime Minister Mark Carney said negotiations had seen “a slight intensification,” according to Carney. He said any progress reflected Washington moving toward Canada’s demands, rather than concessions by Ottawa.
Tariffs Shape Negotiations
Recent discussions have focused on measures imposed under Section 232 of U.S. trade law. These include duties of up to 50% on Canadian steel and 25% on cars.
Campaigns Address Trade Dispute
Former President Barack Obama mocked Trump’s tariff war with Canada on Saturday while speaking in support of Democratic candidates Abdul El-Sayed and Jocelyn Benson. Obama sarcastically called Canada a “well-known evil empire” and described it as a neighbor only minutes away across a bridge. Mike Rogers, the Republican candidate in Michigan running against El-Sayed, said in a campaign advertisement that Canada was “not our enemy.” He added that the tariff war should end.
Earlier Talks Collapsed
Trade talks between the two countries fell apart in August. Trump then imposed 50% tariffs on $20 billion worth of Canadian goods, and Canada set retaliatory penalties.
Key points
- A Canadian official described recent trade progress as modest.
- Carney said talks had intensified slightly and reflected movement by Washington toward Canada’s demands.
- Negotiations focus on Section 232 tariffs of up to 50% on steel and 25% on cars.
- August’s collapse was followed by U.S. tariffs on $20 billion in Canadian goods and Canadian retaliation.