US-Canada Trade Deal Falls Apart In Potential Blow To Auto Industry
The last-minute collapse of a trade deal between the United States and Canada threatens key industries and higher prices for consumers in both nations.
The last-minute collapse of a trade deal between the United States and Canada threatens key industries and higher prices for consumers in both nations.
A trade agreement between the U.S. and Canada fell through Friday evening, POLITICO reported Saturday. As automobiles, aluminum, and steel were subject to the agreement, the costs of such goods may rise ahead of the midterms.
The U.S. Trade Representative (USTR)’s office and Canada-U.S. Trade Minister’s office did not immediately respond to the Daily Caller News Foundation’s requests for comment.
“Canada declined to finalize the trade deal under the terms agreed earlier this week,” USTR Jamieson Greer told reporters Friday, according to POLITICO. “Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada upended the careful balance reached in the past days … This is a missed opportunity for Canada to partner with the U.S.”
The development follows President Donald Trump’s Aug. 18 announcement on Truth Social that the U.S. had a pending deal with Canada.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL,” Trump wrote.
Washington was willing to lower its tariffs on aluminum, automobiles, and steel if Ottawa dropped its retaliatory tariffs on diary and lumber, according to POLITICO. Greer reportedly didn’t specify which disagreements derailed the deal Trump was hyping up.