OTTAWA--The office of Prime Minister Mark Carney said Tuesday the Canadian leader spoke over the phone with President Trump about last-ditch trade talks aimed at averting a new 50% U.S. tariff on certain Canadian goods.
Carney's office said the call took place Monday, but provided no further information. Carney had told reporters earlier on Monday he anticipated a phone conversation to determine the present state of trade talks. Absent an agreement, this new 50% tariff kicks in on Wednesday.
Canadian trade negotiators have been in Washington for the past week in an effort to kickstart talks on a new commercial pact. But the immediate focus has been trying to persuade the Trump administration to either delay or scrap plans to impose a 50% tariff on roughly $20 billion on Canadian imports. The White House contends the new, hefty levy is required because of alleged Canadian mistreatment of U.S.-made automobiles, wines and spirits, and dairy products.
The U.S. has placed tariffs of up to 50% on key Canadian industrial goods such as steel, aluminum, automobiles and forest products. In response, Canada has limited the amount of U.S.-assembled vehicles that can enter the country duty free, while most of the country's provincial governments have banned the sale of U.S. wine and spirits from retail shelves.