In the first half of this CNBC interview with U.S. Trade Representative (USTR) Jamieson Greer, the Ambassador walks through the reasoning, purpose and intent of the recently announced 50% tariff rate against Canadian imported goods.

As noted by USTR Greer the Canadians are applying two separate metrics within their trade agreement with Europe and the USA.  Toward Europe there are no limits and quotas on dairy products, toward the USA there are severe limits and quotas applied by third party brokers (co-ops owned by Canadian dairy farms) leveraged by the Canadian government.  This is one example of Canadian duplicity.

Additionally, by the various provincial governments of Canada banning the import and/or sale of U.S. products, and with Canada putting caps and limits on automobiles, these USA trade actions are being confronted by the 50% countervailing duties against Canadian imports.  Greer also calls ‘bulls**t’ on Carney’s double speak.  WATCH:

The trade discussion with Canada returns at the 10:00 minute mark. Jamieson Greer notes we have always had trade issues with Canada for decades. There was a significant percentage of the population who are against offshoring jobs, which is what NAFTA essentially did in North America.

It is also worth emphasizing that President Trump wants Canada to diversify. Both U.S. Ambassador Pete Hoekstra and President Trump have said, repeatedly, President Trump wants Canada to go make other bilateral deals with other nations.

Why? Two main reasons.

#1) If Canada has to enter a bilateral trade agreement with another country, suddenly they learn what reciprocity means. They have to give something in order to get trade benefit. This is a completely new concept for Canada who have taken advantage of the USA for a long time with ZERO reciprocity in mind.

This is what former Prime Minister Justin Trudeau was talking to Trump about in Mar-a-Lago (December ’24). In essence, Donald Trump wants Canada to go and try to cut more favorable trade deals, so they will learn how good they had it.

#2) If Canada cuts a trade agreement with, say, Europe, the terms of that FTA purchase in/out then become a standard in their trade allowances.

This permits team USA to turn to Canada and say, “wait, we want the same terms”. We might even ask for most favored nation terms due to scale and scope.

Canada is not prepared for this type of bilateral relationship at all.  The CUSMA trade negotiator Dominic LeBlanc just discovered the problem following the current Canadian effort to diversify FTAs.  Suddenly, LeBlanc has admitted quietly they have no response.

For around 40+ years (USTR Greer would argue 60+ years) Canada has benefitted from the U.S. economy purchasing their goods, allowing their businesses unlimited access to the U.S. market and yet simultaneously restricting the Canadian market from similar reciprocity.  Those terms are no longer acceptable.

Share