As the clock ticked down toward a deadline that President Trump set for a trade deal with Canada, it seemed the sticking point was hovering over all those black and whites grazing across America’s heartland. As such, the U.S. Trade Representative (USTR) reported that negotiations concluded today without an agreement and have stalled over all those dairy products that fill your 36-inch Frigidaire.
The frustration of impeded talks was evident in a terse USTA statement issued earlier today that read in part, “There have been no concessions by Canada on agriculture.” The president has long maintained that Canada puts heavy restrictions on dairy and is holding a hard line while negotiators for Canada seem unwilling to budge.
The Changing Landscape
The changing trade landscape under the Trump administration has caused a severe backlash from some who believe that the threat of tariffs is not the way forward. Indeed, even here at Liberty Nation, there are a variety of viewpoints over this paradigm shift that has led to talk of trade wars. It is an issue that crosses all manner of political lines.
For instance, Bloomberg News – no fan of the president – published an article titled, “Trump May Actually Be Right about the Trade Deficit with Canada.” And media-nemesis The Washington Post published a piece entitled, “Canada should surrender to Trump over trade.”
Bloomberg Dust Up
Speaking of Bloomberg, a major dust-up emerged today when Mr. Trump’s off-the-record comments to the business news entity ended up in The Toronto Star. In an incendiary article by the Star’s Washington Bureau Chief, Daniel Dale quoted the president as saying he has no plans to compromise but must keep it under wraps because “it’s going to be so insulting they’re not going to be able to make a deal.”
Then there was this from the Star that sent Canadian negotiators reeling: “Off the record, Canada’s working their ass off. And every time we have a problem with a point, I just put up a picture of a Chevrolet Impala.” General Motors produces the Impala at a plant in Oshawa, Ontario.
Under the leadership of Prime Minister Justin Trudeau, Canada has been trying to talk tough for a while now. “It’s a cold, hard bluff,” said Gordon Ritchie, a former Canadian negotiator told WaPo, “It’s the kind of thing that might work in low-level real estate development, but I don’t think Freeland and Trudeau will be buffaloed by this.”
However, Trump’s off-the-record comments don’t sound like a bluff, and that just may be what has Ottawa shaking in its boots.
Canada is the second largest trading partner of the United States. According to the USTR, an estimated $673.1B worth of goods and services changed hands in 2017. American exports are said to be just over $282B and imports almost $300B which puts the U.S. trade deficit with its northern neighbor around $17.1B. While trade talks seem at an impasse at the moment, this is clearly a high stakes game, and it doesn’t seem wise for the Canadians to bank on a Trump bluff – especially considering that he is a seasoned player and just may be holding a Royal Flush.
