U.S. President Donald Trump
CPAC
U.S. President Donald Trump expressed optimism about trade relations with Canada, hinting at potential tariff reductions following Canada’s decision to remove retaliatory tariffs on U.S. goods.
Speaking to reporters, Trump described Canada’s move as “nice” and announced plans for another call with Canadian Prime Minister Mark Carney soon, emphasizing a desire to maintain positive relations.
“We want to be good to Canada,” Trump said, referencing a productive conversation with Carney the previous day.
The comments come amid heightened tensions over trade, with Trump having increased tariffs on Canadian imports to 35% from 25% on August 1, citing Canada’s alleged failure to curb fentanyl smuggling and retaliatory trade measures. Canada, which sends 75% of its exports to the U.S., has faced significant economic strain from these levies, particularly in the auto, steel, and aluminum sectors.
Prime Minister Carney called the tariff hike “disappointing” but reaffirmed Canada’s commitment to the Canada-U.S.-Mexico Agreement (CUSMA) and ongoing negotiations to resolve trade disputes.
Trump’s latest remarks suggest a possible thaw in the trade war, which has disrupted the integrated North American economy. Canada’s decision to drop retaliatory tariffs was seen as a goodwill gesture, prompting Trump to express openness to further dialogue.
However, he has maintained a firm stance on tariffs as a tool to address trade deficits and national security concerns, including fentanyl trafficking, despite data showing only 0.2% of U.S. fentanyl seizures occur at the Canadian border.
As negotiations continue, both nations face pressure to stabilize their critical trade relationship, with businesses and consumers bracing for potential price increases if tensions persist