CALGARY, ALBERTA (RFD NEWS) — New details are emerging on trade with Canada after negotiations fell apart over the weekend, with additional 50 percent tariffs against Canadian goods now in effect.
President Donald Trump has rolled out 50 percent tariffs on around $20 billion worth of Canadian goods. The duties will impact products including building materials, liquor, and clothing.
Canada has vowed to respond, while agricultural groups are calling for negotiations to continue.
U.S. Trade Representative Jamieson Greer told Fox News he has no plans to return to the negotiating table anytime soon.
Canadian Prime Minister Mark Carney says Canada will respond in the coming days, focusing on areas including dairy, agricultural equipment and other goods.
The new tariffs come as talks surrounding the U.S.-Mexico-Canada Agreement (USMCA) continue.
Trade Talks Break Down as Tariff Tensions Escalate
RealAg Radio host Shaun Haney joined us on Monday’s Market Day Report with his reaction to news over the weekend that Canada has walked away from trade talks with the United States, leaving several issues unresolved as the two countries face escalating tariff tensions.
In his interview with RFD News, Haney said the breakdown surprised him after both sides appeared to be making progress toward a deal.
He noted that U.S. Trade Representative Jameson Greer indicated Canada had been offered what the U.S. considered its best possible deal. However, Canadian Prime Minister Mark Carney said last-minute issues were added to the negotiations, along with changes to the U.S. negotiating team.
One unresolved issue involves the Canadian dairy market. Haney says Canadian officials appeared willing to address a U.S. request concerning dairy, while disagreements over the automotive sector remained.
Another issue reportedly added late in the talks involved Canada’s French-language labeling requirements. Canada has two official languages, and Haney says that issue contributed to the breakdown in negotiations.
Canada Considers Retaliation
The United States applied 50 percent tariffs on Canadian goods Friday night, prompting questions about how Canada could respond.
Haney says Canada could pursue dollar-for-dollar retaliation, amounting to roughly $28 billion in U.S. imports. Potential targets mentioned include electronics, U.S. dairy and other products, although the full list had not been finalized.
Another option would be for Canada to encourage boycotts of U.S. products rather than impose additional tariffs. Haney points to previous Canadian efforts involving U.S. alcohol as an example.
U.S. Dairy Groups Respond
U.S. dairy groups are urging the White House to maintain pressure on Canada. In a statement released Monday morning, the National Milk Producers Federation said U.S. producers have been waiting for Canada to keep prior promises.
The group says both countries should work to prevent friction and build on progress made through weeks of negotiations.
The USMCA is currently undergoing a year-by-year review.
What Could Bring Both Sides Back?
Haney says the economic relationship between the United States and Canada pressures both countries to return to negotiations.
He also points to the U.S. midterm elections in November and a window before September 8, when Canada is expected to impose secondary retaliatory tariffs.
If negotiations do not resume before the political calendar becomes more crowded, Haney says the talks could potentially be pushed into late November or December. One possibility raised during the interview was that negotiations might not resume until January.
For now, Haney says the two countries need to return to the negotiating table as quickly as possible.
