Would Trump’s 20% auto tariff be Canada’s ’ruination’? We assess the damage

Would Trump’s 20% auto tariff be Canada’s ’ruination’? We assess the damage

Would Trump’s 20% auto tariff be Canada’s ’ruination’? We assess the damage

U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland were unable to clinch a deal despite meeting late into the evening on Thursday.

Candian Foreign Minister Chrystia Freeland walks out of the U.S. Trade Representative's office to speak to journalists in Washington, U.S., August 28, 2018. Democrats hope to take control of the U.S. Congress from Trump's fellow Republicans in November congressional elections.

Brian Mulroney says Canada needs to put a little more water in its milk if it expects to make a new NAFTA deal with a hard-bargaining US president whose political fortunes depend heavily on being able to declare victory for American dairy farmers.

"We're neighbours and neighbours help each other when they need help". "We'll see what happens, but in any event, things are working out very well". Trump, who has frequently threatened to walk away from the pact, is now threatening tariffs on auto imports.

Canadian Prime Minister Justin Trudeau, from US President Donald Trump, has unanimous domestic support for now but to keep a firm hold on power must wring concessions from an unwilling powerful dairy lobby in order to mollify Washington. "It can't be renamed something or called something else", Perdue said when asked about dairy concessions needed to reach a NAFTA deal, referring to a new milk class created past year by Canada to price milk ingredients such as protein concentrates, skim milk and whole milk powder.

Various U.S. officials - including agriculture secretary Sonny Perdue and Trump economic advisor Larry Kudlow - have stressed in recent days that the milk issue is integral to a trade deal.

As the two nations' chief negotiators prepared to resume their talks in Washington Tuesday, dairy producers suggest this deal is a line in the sand for them.

"The atmosphere is absolutely professional", she said.

But talks still appear to be hung up on U.S. objections to Canada's state control of the dairy market, as well as the procedures for resolving disputes.

Major stumbling blocks for Ottawa and Washington remain: an global system for resolving disputes, Canada's protected dairy industry and Canadian cultural subsidies.

Trudeau, who over the a year ago has faced increasing criticism for backtracking on promises, ordering endless consultations on major topics and failing to fulfill many of his campaign promises, had taken a tougher stance against the United States in recent weeks.

Canada has reportedly offered to make concessions to its protected dairy industry, which has come under repeated attack from Trump, in an effort to retain Chapter 19.

"If they want to manage the supply, we are simply saying manage your supply for your dairy industry and let's be done with it". Earlier on Wednesday, the Trump administration's own anti-dumping duties on Canadian paper, used in books and newsprint, were thrown out by the U.S. International Trade Commission.

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