Trump says trade war with Canada will end 'pretty soon' as midterms loom

PORT HURON · U.S. President Donald Trump says he expects his trade war with Canada to end "pretty soon." Trump made the claim at a rally in Port Huron, Michigan, on Sunday, repeating his allegation that Canada had been "ripping off" the United States for years. He said the ongoing dispute would be settled soon and that Canada was "willing to give us anything at this moment." The comments come less than two weeks before the U.S. midterm elections, where the trade conflict has become a key issue in tight races.

"Canada has been ripping off the United States for years, OK? For years. And I had to do it. We’ll have that settled pretty soon. They’re willing to give us anything at this moment," Trump said Sunday. On Friday, Trump announced he would lift some of the 50 per cent tariffs on Canadian goods at the end of the month, while adding tariffs to dozens of new products, including Canadian garbage and sewage. That shift came at the request of Republican Senator Susan Collins of Maine, a border state hit hard by the trade dispute.

White House economic adviser Kevin Hassett also said on Sunday that a trade deal was close, according to a Bloomberg report. "I think it’s very close," said Hassett, director of the White House National Economic Council, adding that Commerce Secretary Howard Lutnick had been speaking with Canadian officials throughout the week. However, there has been no confirmed breakthrough. The office of Canada-U.S. Trade Minister Dominic LeBlanc said the government will assess the latest tariff measures and that "Canada stands ready to work constructively and in good faith towards a more mutually beneficial trading relationship" with the U.S.

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Prime Minister Mark Carney said during a press conference on Friday that Canada "could sign it this afternoon if the U.S. were there." He added, "If it has to be months from now or longer than that, or another administration before a proper deal comes into place, we will do that." When asked whether a deal could be signed before the U.S. midterms, Carney did not close the door on that possibility but said the U.S. is "hard to predict." Diplomatic relations have been strained since the Carney government walked away from formal trade talks in August, citing unreasonable last-minute demands from the Americans.

The trade war has sparked legal and political challenges for the Trump administration. A lawsuit filed in mid-October argues Trump lacks the authority to invoke a never-before-used section of U.S. law to impose levies against Canada. The challenger, Gellert Global Group Corp., specializes in food imports, including Canadian cheese. A recent report from the Montreal Economic Institute found that U.S. steel and aluminum prices have soared since Trump placed tariffs on those sectors, failing to create new jobs while making a wide range of other products more expensive.

Trump is facing pressure from within his own party as well. Nosy Mag reported in October that Michigan Republican Senate candidate Mike Rogers broke ranks with Trump in a campaign ad, saying, "Here in Michigan, we know that Canada is not our enemy. We need to end this tariff war now." Michigan ships about $1.5 billion in tariff-listed products to Canada each year. An Angus Reid Institute poll said 59 per cent of Americans oppose tariffs against Canada, though MAGA Republicans strongly favoured them.

During an Oct. 17 rally in Kentucky, Trump took a swipe at former prime minister Justin Trudeau and Canada’s health care system. "You know, we had Trudeau, who’s not a good, not a good guy, loser," Trump said. Possibly referring to Carney, he added Canada’s "current guy’s good … but he’s not nice when it comes to trade." Trump also claimed the U.S. is "losing" US$90 billion to Canada, money he said funds Canada’s "health-care system and other things that they shouldn’t be having."

With files from The Canadian Press, National Post and Global News