President Trump said his administration could impose mutual tariffs on Canada on Friday in a trade war between the two countries.
Speaking to reporters at the oval office, Trump complained about the sudden tariffs on Canadian dairy products and dairy products imported from the US. The president argued that Canada is charging Americans with more than 200% tariffs on dairy products and “very high tariffs” on lumber exports.
“They make it impossible for us to sell wood and dairy products to Canada, but our numbers are only a small part of that. They barely exist,” Trump said.
“They'll come across the exact same tariffs unless they drop it,” Trump added. “That's what we mean by mutuality. And we might do it as early as today, or we'll wait until Monday or Tuesday, but that's what we're trying to do. We charge the same thing. That's not fair.”
Trump told reporters that his administration is loosening environmental regulations “on emergency basis” and cutting down more trees to create a supply of wood in the country.
Access to the dairy and sawmill markets was two of the biggest competition in the strong economic relationship between the US and Canada.
The president's remarks are the latest salvo, which was a trade dispute between the United States and its north neighbours. In February, Trump announced a 25% tariff on all imports from Mexico and Canada.
These were delayed until this week, and came into effect Tuesday, prompting retaliatory tariffs from Canada. However, Trump has since announced an exemption from auto parts and goods that are covered by the 2020 US-Canada trade agreement.
The President has vowed to impose mutual tariffs on all other countries that have obligations on US goods from April 2nd.
