Trump sees Canada deal ‘fairly soon,’ downplays leaving CUSMA

U.S. President Donald Trump expressed optimism about resolving a trade fight with Canada and downplayed the prospect of quitting a continental trade pact, in a potential sign of de-escalating tensions between the two countries.

Trump was asked Saturday whether he intended to have the U.S. leave the Canada-U.S.-Mexico Trade Agreement during a meeting with Irish Prime Minister Micheál Martin in Dublin.

“We’re doing great. We’re going to have a great relationship with Mexico. We actually have a good one with Canada,” Trump said.

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He went on to say that a deal with Canada could come “fairly soon,” but provided no details on whether formal talks between the two economies had resumed.

“Canada has to treat our farmers better, and they can’t charge our farmers tariffs. They’re charging our farmers 400 per cent tariffs and many other things, so when those things go away, they’re willing to get rid of it all,” Trump said, adding, “You’ll probably see a deal with Canada fairly soon.”

The U.S. and Canada have been locked in a clash that has expanded well beyond tariffs and that threatens to rupture cross-border supply chains relied on by key industries like auto manufacturing. Talks in August on a broader trade deal collapsed at the last minute, leading Trump to follow through on threats to hit Canada with 50 per cent levies on billions of dollars in goods.

Prime Minister Mark Carney retaliated with tariffs on Sept. 8, hitting a score of U.S. consumer goods and raising duties on many U.S. steel products to 50 per cent from 25 per cent. Trump, in turn, announced additional counter-measures against Canada, including bans on certain products while expanding duties on others.

Carney, however, recently signalled that another round of retaliation was unlikely, saying that the latest U.S. measures against Canada would only have a “modest” impact overall. The prime minister also confirmed on Thursday that he had spoken to Trump recently on geopolitical issues, though it was not clear if that covered trade.