U.S. President Donald Trump said Friday his administration hasn't "had a lot of luck with Canada" in its trade negotiations, tempering expectations of a deal ahead of next week's deadline to avert tariffs
"I think Canada could be one where they just pay tariffs – not really a negotiation," Trump told reporters before departing on Marine One from the South Lawn of the White House.
Discussing the prospects for a deal with the European Union, Trump said there's a "50-50" chance but the Europeans would have to first "buy down" their tariffs. He also boasted about the recent announcement of an agreement with Japan.
But Trump said "we don’t have a deal with Canada, we haven’t been focused on it."
Trump sent a letter to Prime Minister Mark Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Aug. 1. The White House has said those duties would apply only to goods not compliant with the Canada-U.S.-Mexico Agreement on trade.
Canada is also being slapped with Trump's tariffs on steel, aluminum and automobiles, and will be hit by copper tariffs next month.
Trump said Friday there's very little room to negotiate lower sectoral tariffs on steel and aluminum. Those duties are a critical target for Canadian trade negotiators, as Canada is a major supplier of steel and aluminum to the United States.
Canadian officials also have been working to lower expectations of a new economic and security agreement with the U.S. ahead of Trump's Aug. 1 deadline.
On Tuesday, Carney said "we'll use all the time that's necessary" and Ottawa will only agree to a deal "if there's one on the table that is in the best interests of Canadians."
Canada-U.S. Trade Minister Dominic LeBlanc was in Washington this week and said Thursday that he was feeling encouraged after a meeting with U.S. Commerce Secretary Howard Lutnick and Republican senators in Washington.
LeBlanc said he would be returning to the United States capital next week for further meetings but indicated that getting to a deal will require additional time. The minister's office said it would not be commenting on Trump's Friday statements about negotiations with Canada.
Kirsten Hillman, Canada's ambassador to the U.S., said Thursday that "there is a time when the deal is the right deal."
"It's important for us to be in a position to continue negotiating until we get to that point," she said.
Picture Courtesy: AP Photo/Alex Brandon
