On Tuesday, May 16, Canadian Prime Minister Justin Trudeau stated that he had a “very excellent and productive” phone conversation with US President Donald Trump regarding the United States’ tariff threat on Canadian aluminum and steel imports. Trudeau expressed optimism that a solution could be reached to avoid the tariffs, which are set to take effect on June 1.
In a statement from the Prime Minister’s Office, Trudeau said, “We discussed the importance of the Canada-U.S. trading relationship to both our economies and to our shared security. We agreed that we need to work together to resolve trade issues in a mutually beneficial way.”
The Trump administration announced in March 2018 that it would impose a 25% tariff on steel imports and 10% tariff on aluminum imports from Canada, Mexico, and the European Union. The decision was based on Section 232 of the Trade Expansion Act of 1962, which allows the president to take measures to protect national security.
Canada, Mexico, and the EU have all expressed opposition to the tariffs, arguing that they are unjustified and will harm their economies. Canada has also invoked Article XXVII of the General Agreement on Tariffs and Trade (GATT), which allows countries to take retaliatory action if they believe their trade interests are being harmed.
Trudeau has repeatedly stated that Canada will not be “bullied” by the United States and will take all necessary measures to defend its interests. Canada has also been engaging in discussions with other countries, such as the EU and Japan, to form a united front against the US tariffs.
In April 2018, Canada imposed retaliatory tariffs on $16.6 billion worth of US goods, including steel, aluminum, and other products. The tariffs were designed to match the value of the tariffs that the US had imposed on Canadian aluminum and steel.
It is unclear whether Canada and the United States will be able to reach a solution to avoid the tariffs. The Trump administration has maintained that the tariffs are necessary to protect national security, while Canada has argued that they are unjustified and will harm both countries.
However, the phone conversation between Trudeau and Trump suggests that there is room for negotiation. Both leaders have expressed a desire to resolve the issue in a mutually beneficial way.
The tariff threat between Canada and the United States is a major concern for both countries. The tariffs could harm businesses and consumers in both countries, and they could also damage the relationship between the two countries.
Trudeau’s conversation with Trump suggests that there is room for negotiation, but it is unclear whether the two leaders will be able to reach a solution that avoids the tariffs. All eyes will be on the upcoming G7 summit in June, where Trudeau and Trump are expected to discuss the issue further.
