Trump said the pause, requested by Canada, would allow both sides to finalise details, including possible changes to tariffs on steel and aluminium….reports Asian Lite News Desk
US President Donald Trump has delayed the implementation of a 50 per cent tariff on Canadian goods for three days, saying the United States and Canada were close to reaching a deal that could also ease 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.
Trump said the tariff had been scheduled to take effect at 7 am on Wednesday but was postponed at Canada’s request to give negotiators more time to conclude discussions.
“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.
The President did not identify the Canadian Prime Minister by name or disclose the specific terms being negotiated. His remarks suggested that agriculture, steel and aluminium were among the issues under discussion.
Asked whether Washington was considering reducing tariffs on Canadian steel and aluminium, Trump said the administration was looking at the possibility.
“Well, we’re looking at that,” he said.
Trump also suggested that Canada could eventually face tariff levels similar to those imposed on other US trading partners. He said Canada had previously been subject to 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 said American farmers had been adversely affected by Canadian trade practices and suggested that 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 Trump’s remarks whether he meant US agricultural exports would enter Canada without tariffs or whether another form of relief had been agreed.
Despite the ongoing trade dispute, Trump described relations with the Canadian government as positive.
“Look, we have a very nice relationship with leadership right now, and we’ll see,” he said.
Trump announced the three-day delay during a White House event attended by senior US regulators and leaders from the finance, cryptocurrency and technology sectors. He was discussing artificial intelligence and investment when he disclosed the decision.
He also claimed that vehicle manufacturers were moving 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.
The United States and Canada maintain one of the world’s largest trading relationships, with deeply integrated automotive, agricultural and energy supply chains. Steel and aluminium have been recurring sources of trade tensions, while businesses on both sides rely heavily on the movement of components, raw materials and finished goods across the border.
The three-day delay gives negotiators additional time to work towards an agreement before the proposed tariff takes effect.
