COMMENT — US–Canada Trade War Escalates as Washington Shows No Hurry for a Deal

US President Donald Trump’s administration is ready to continue the trade clash with Canada, even though new bans on imports of Canadian products take effect next week and Washington threatens 50% tariffs on Canadian vehicles, auto parts and steel from January, according to Reuters.

US Trade Representative Jamieson Greer said today that Washington sees no urgent need for compromise.

Greer said in an interview for CNBC that the United States is satisfied with the current situation and that there is no rush to reach a new agreement with Canada.

According to him, the two countries continue to have important trade relations, exchanging oil, gas, potash and agricultural products. However, his statements signal that Washington is in no hurry to ease the disagreements.

The new US import measures affect a wide range of Canadian products, including alcoholic beverages, motorcycles and dairy products. Meanwhile, a possible tariff increase to 50% from January could have significant consequences for vehicle production in North America, where US and Canadian supply chains are closely linked.

Canada has imposed its own retaliatory tariffs on US goods, which took effect at the beginning of this month.

These measures followed the 50% tariffs the US imposed last month on Canadian goods worth around $20 billion, after several rounds of negotiations between the two countries failed.

The escalation of the conflict has deepened divisions between the two old allies, who have blamed each other for the failure of the talks.

Canadian Prime Minister Mark Carney has called for a further shift of Canada’s economic relations away from its largest trading partner, while questions have grown about the future of the US–Mexico–Canada Free Trade Agreement (USMCA).

Some experts assess that the Trump administration may aim first at reaching an agreement with Mexico, which could give the US more leverage in negotiations with Canada.

Mexican officials said this week that the next round of talks with Washington could take place in October. The Canadian embassy in Washington had not immediately commented on the US trade representative’s statements.