Trump
June 11, 2018

Trump: Dairy Is Reason For Canadian Metal Tariffs

 |  By: Mike Opperman

In one of a series of tweets over the weekend President Trump mentioned the 270% tax imposed by Canada on U.S. dairy imports as the reason for the recent tariffs on Canadian steel and aluminum.

PM Justin Trudeau of Canada acted so meek and mild during our @g7 meetings, only to give a news conference after I left saying that, ‘US Tariffs were kind of insulting’ and he ‘will not be pushed around.’ Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!” – President Trump Tweeted on Saturday.

The tweet was a part of a series of tweets sent by the president in response to his meetings with Canadian prime minister Justin Trudeau during the recent G7 Summit. When the president imposed the metal tariffs on Canadian goods (along with Mexico and the EU), he cited national security concerns as the reason. It now appears dairy was part of that decision, a finding that will elevate dairy issues within the talks to renegotiation the North American Free Trade Agreement (NAFTA) to a much more prominent role.

Analysts are paying close attention to what happens with the NAFTA talks.

“We were very close to making a deal with Canada on NAFTA” Larry Kudlow, White House economic advisor, said on ABC’s This Week on Sunday, before Trudeau criticized the U.S.

According to Jim Wiesemeyer, ProFarmer Washington policy analyst, NAFTA 2.0 was a key topic when Trump held meetings with Trudeau last week.

“The final push for NAFTA 2.0 ran up against Trump’s insistence on a five-year sunset clause that would see the pact renegotiated or killed after five years,” Wiesemeyer said, noting that Trump said “we’re very close” on the sunset provision.