Trump Hints at Easing Trade Tensions, Says "Agreement with Canada Soon"

Dismisses Possibility of Withdrawing from USMCA
"If High Tariffs on Agricultural Products Are Removed, the U.S. Will Also Eliminate Tariffs"
Canada Cautious About Further Retaliation

U.S. President Donald Trump has stated that the trade dispute with Canada could be resolved soon.

According to Bloomberg on September 12 (local time), President Trump, during a meeting in Dublin, Ireland with Irish Prime Minister Micheal Martin, was asked whether the United States would withdraw from the USMCA. He responded, "We are doing well," and added, "We will have an excellent relationship with Mexico, and in fact, we are also maintaining a good relationship with Canada."

He also mentioned that an agreement with Canada could be reached "in the very near future." However, he did not clarify whether the two countries had officially resumed trade negotiations or provide details on specific agreement terms.

U.S. President Donald Trump. The White House

President Trump insisted that Canada must eliminate the high tariffs it imposes on U.S. agricultural products. He said, "Canada needs to treat our farmers better," and "They should not be imposing a 400% tariff on American farmers." He then added, "If such measures are removed, the U.S. would also be willing to eliminate all tariffs," and stated, "You will soon see us coming to an agreement with Canada."

These remarks suggest the possibility that the recent intensification of the trade dispute between the U.S. and Canada could ease. Last month, the two countries attempted to reach a comprehensive trade agreement, but last-minute negotiations broke down. Subsequently, since August 22, the United States has imposed tariffs of up to 50% on billions of dollars' worth of Canadian products.

In response, on September 8, Canadian Prime Minister Mark Carney imposed retaliatory tariffs on U.S. consumer goods and steel products. For certain U.S. steel products, the tariff rate was increased from the previous 25% to 50%.

President Trump also introduced further countermeasures, including banning imports of certain Canadian products and excluding Canadian companies from the federal government procurement market. He additionally warned Canadian aircraft manufacturer Bombardier that access to the U.S. market would be blocked unless it produced aircraft domestically.

Deteriorating relations between the two countries have raised concerns in the market that the United States could even consider withdrawing from the USMCA. Member countries can withdraw from the agreement if they provide six months' notice. With President Trump drawing a line at the possibility of withdrawal and mentioning an early agreement, expectations are rising that both sides may be seeking an exit strategy.

The tariff dispute between the U.S. and Canada is also a burden for the Trump administration ahead of the upcoming midterm elections in November. The two countries' supply chains for automobiles, steel, and agricultural products are tightly interconnected, so a prolonged tariff situation could lead to rising prices within the United States. In particular, in border regions such as Michigan, which has a large auto industry and where Senate elections are being held, the economic impact of the trade conflict is emerging as a key election issue.

This content was produced with the assistance of AI translation services.