U.S. President Donald Trump is warning tax on Canadian auto imports can be “devastating” for Canada.
In two situations, Trump spoke about commerce talks with Canada, first to reporters on Air Drive One then once more at a fundraiser in North Dakota.
Whereas additionally saying he desires to make a “truthful deal” with Canada, he mentioned he might impose the car tariffs.
“I don’t need to do something unhealthy to Canada. I can — all I’ve to do is tax automobiles — it could be devastating,” he mentioned.
Trump spoke whereas Canadian Overseas Minister Chrystia Freeland was assembly in Washington with U.S. Commerce Consultant Robert Lighthizer.
READ MORE: On NAFTA, the U.S. is testing whether or not Canada’s backside line is for actual
Final week, the U.S. and Mexico reached a preliminary settlement to switch the 24-year-old North American Free Commerce Settlement. However these talks excluded Canada, the third NAFTA nation.
Later on the fundraiser, Trump mentioned all he needed to do is threaten Canada’s automobiles “and so they say, ‘Okay we’ll make a deal!’”
“So each time I’ve an issue with these, you realize, many of those nations that we’re speaking about, particularly the large automobile nations,” he went on. “I simply say, ‘Okay! Look, that’s okay. I’m going to place a 20 per cent tax in your automobiles.’ ‘We’ll do it! We’ll do it, we’ll agree.’”
“Truly in Canada, a tax on automobiles can be the ruination of the nation,” he continued.
WATCH: In addition to attacking Canada, Trump additionally attacked Obama’s speech
Whereas it’s an exaggeration that Canada can be ruined, economists have mentioned the nation’s GDP might gradual by one per cent, and the consequences might be doubled in Ontario — even sending the province right into a recession.
READ MORE: A 25% auto tariff from Donald Trump might ship Ontario into recession: economists
The feedback appear to substantiate reportedly off-the-record remarks Trump made final week, through which Trump mentioned he put up an image of a Chevrolet Impala (which is made in Ontario) when there’s an issue throughout commerce talks.
“Each time we now have an issue with a degree, I simply put up an image of a Chevrolet Impala,” Trump mentioned, in keeping with The Toronto Star.
Prime Minister Justin Trudeau has promised to guard autoworkers whereas negotiations for NAFTA proceed.
READ MORE: Responding to Trump auto tariffs in form would have ‘catastrophic’ penalties: report
— with information from the Related Press
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