More tariffs are on te way, and other countries are speaking out over the plan.
Canadian officials say they were caught off guard with the proposed 25 percent tariff, but said earlier this week, talks are already in the works.
“I had a good call with Donald Trump last night, again, laying out the facts and talking about how the intense and effective connections between our two countries flow back and forth. This is a relationship that takes a certain amount of work, and that’s what we’ll do. It was a good call,” said Canadian Prime Minister Justin Trudeau.
However, economists say they have big concerns. The proposed tariffs could upend the USMCA, something Trump brokered during his first term. A former speech writer for former President George W. Bush says Trump likely has a larger plan in the works.
“What Trump is about is: We’re going to retreat from free markets. Trump does not believe in such a thing as a mutual gain from trade – there’s a winner, there’s a loser. Someone who dominates and someone who is dominated. And Canada’s going to have to make some very difficult choices. USMCA becoming a Protectionist Bloc. At some point, Canada may have to choose between keeping open the benefits it gets from USMCA and trading freely with the rest of the world,” said David Frum.
Canada and Mexico say retaliatory tariffs are on the table. It is a problem the new U.S. Trade Representative will have to address. Just recently, Trump nominated Jamieson Greer for the job. At a House hearing earlier this year, Greer said if he were still at the USTR’s office, he would attack these trade issues with better communication.
“This is the kind of thing where under the Phase One dispute settlement arrangement, they’re supposed to be monthly, quarterly, semiannual meetings where you can take this to the Chinese. The whole purpose of these meetings is to identify these issues and resolve them before they blow up into bigger issues and end up in tariffs escalating, that kind of thing. Those are the kinds of processes that I would expect to see.”
Greer’s nomination will need to be approved by the Senate.
