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United States President Donald Trump’s latest trade manoeuvre leaves the door open to compromise with Canada, even as it threatens to exacerbate the cost-of-living crisis for Americans and further sour relations with Ottawa.
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A set of actions announced this week left out some of the harshest retaliatory measures, delayed others and pulled back some politically sensitive duties. It’s a tacit acknowledgement of the risks posed by Trump’s campaign of vengeance against Canada with just two months until the U.S. midterm elections.
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For one thing, the import bans announced Tuesday have a three-week window before taking effect, providing a runway for U.S. and Canadian officials to potentially return to the negotiating table.
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A senior U.S. administration official said constructive conversations with Canadian counterparts have taken place this week, and added that they expect to have another discussion in the next few days to see if there’s an alternative path forward.
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For another, the U.S. is holding off using one of its most potent weapons on Canada. Trump threatened to increase tariffs on automotive vehicles to 50 per cent from 25 per cent, but set their effective date for Jan. 1. The U.S. official said the threat remains in place if the two countries can’t resolve the issues before the deadline.
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Trump’s “counter-retaliation package in many ways was more bark than bite,” said Wendy Cutler, senior vice president at the Asia Society Policy Institute. Most of the import bans were already subject to 50 per cent tariffs, making the move more symbolic than catastrophic, she said Wednesday.
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The White House didn’t respond to a request for comment.
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Republicans are fighting to maintain their congressional majority in November, and polls show that voters aren’t keen on the idea of an escalating trade war with American’s northern neighbour. Some vulnerable Republicans have criticized the Trump administration’s trade actions and the retaliatory measures against Canada.
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Canada restraint
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The proclamations announced by the White House on Tuesday include bans on whey proteins, certain rye whiskies and other liquors, malt beer and certain grape wines, non-alcoholic beer and motorcycles.
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Trump also added new tariffs on certain cheeses, animal hides, motorboats, certain aluminum and paper products, golf carts and mattresses, using a legal authority under Section 338 of the Trade Act of 1930.
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At the same time, the White House announced plans to remove some of the 50 per cent tariffs — announced just two weeks ago — on certain products, such as salt, cement and toilet paper. Maine Senator Susan Collins, a Republican who is running for reelection this year, had pushed the administration to walk back levies on road salt and cement.