Washington, Aug 20 (IANS) US President Donald Trump has delayed a 50 per cent tariff on Canadian goods for three days, saying the two neighbours were close to an agreement that could also reduce duties on steel and aluminium.
“We delayed it for three days because I think we have a deal with the Prime Minister and a good deal for everybody,” Trump said at the White House.
The President said the tariff had been scheduled to take effect on Wednesday morning but was postponed at Canada’s request to allow negotiations to conclude.
“It was supposed to be a 50 per cent straight across the board tariff that was going into effect at 7:00 this morning, and I delayed it at the request of Canada for three days so we can iron out the details,” he said.
“But it’s going to be a wonderful deal, hopefully a wonderful deal for everybody,” Trump added.
He did not identify the Canadian prime minister by name or provide the terms under negotiation. His comments indicated that agriculture, steel and aluminium were among the issues under discussion.
Asked whether he was prepared to lower US tariffs on Canadian steel and aluminium, Trump said the administration was considering it.
“Well, we’re looking at that,” he said.
Trump suggested that Canada could receive a tariff rate comparable with those imposed on other US trading partners. He said Ottawa had previously faced higher duties.
“We may bring some of the tariffs down to a level where other countries are because Canada was paying a higher tariff — Canada was paying us a higher tariff,” he said.
The President also claimed that American farmers had been harmed by Canadian trade practices and said the expected agreement would provide relief.
“Well, we’re getting zero for our farmers,” Trump said. “You know, farmers have been hurt very badly by Canada, and they won’t be paying any tariffs anymore.”
It was not immediately clear from his remarks whether he meant that American agricultural exports would enter Canada without tariffs or that another form of relief had been negotiated.
Trump struck a positive note about his administration’s current relationship with the Canadian government despite the tariff dispute.
“Look, we have a very nice relationship with leadership right now, and we’ll see,” he said.
The tariff announcement came during a White House event attended by senior US regulators and leaders from the finance, cryptocurrency and technology industries. Trump was discussing artificial intelligence and new investment when he disclosed the three-day pause.
He also claimed that vehicle manufacturers were transferring operations to the United States from neighbouring countries.
“Honda just announced, Toyota just announced they’re moving their operations from Mexico, from Canada, from other places,” Trump said.
Canada and the United States share one of the world’s largest trading relationships, supported by closely integrated automotive, agricultural and energy supply chains. Steel and aluminium have repeatedly been sources of trade friction, while cross-border industries depend on components and raw materials moving between the two countries.
–IANS
lkj/sd/
