U.S. Canadian Trade Talks Were On, Then Off, Now On Again

Last Friday, June 27, President Donald Trump announced on social media that U.S. officials would terminate “all discussions on trade with Canada, effective immediately.” The president also said his administration would set new tariffs on Canadian goods within one week. Talks reportedly ended after the Canadian government confirmed it would keep in place its digital services tax. (As The Hill explained, digital services taxes are levies on technology companies from countries where those companies’ products are used. Payments under Canada’s tax were due this past Monday, June 30.)

By Monday morning, things had changed. Talks resumed after the Canadian government cancelled the tax.

Shortly after President Trump’s announcement last Friday, however, the Canadian government imposed a quota on certain steel mill imports from the United States and other non-free trade agreement countries, along with a 50 percent surcharge on imports that exceed that quota. As of mid-day Monday, June 30, it was unclear what would happen with these quotas.

Regarding the quotas, Canadian Finance Minister François-Philippe Champagne said his government was acting to protect its domestic industry from “unjust U.S. tariffs.” The quotas are to be administered on the basis of five steel product categories: flat, long, pipe and tube, semi-finished, and stainless steel and are to be reviewed in 30 days “to ensure their appropriateness and effectiveness in light of evolving market circumstances, and periodically thereafter.” The 50 percent surcharge is to be administered in addition to any existing surtaxes or anti-dumping and countervailing duty measures, as well as forthcoming tariff measures that will be based on the country of “melt and pour” for steel or “smelt and cast” for aluminum.

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