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U.S.-Canada trade tensions complicate USMCA talks

An ag lobbyist says a trade standoff between the U.S. and Canada is complicating efforts to update the U.S.-Mexico-Canada Agreement.

Randy Russell with The Russell Group says he’s concerned.

“The relations between our government and the Mexican government are far better. With Canada, we have some real challenges.”

He says any resolution starts with leadership.

“The relationship between President Trump and Mr. Carney, I’ll leave that to the White House to describe, but we have some challenges there. There’s an environment here where it seems to be escalating, not de-escalating.”

The U.S. currently has a 50 percent tariff in effect on certain Canadian goods, including dairy. Canada has responded with its own tariffs on U.S. dairy and ag equipment, among other products, expected to take effect next week.

Russell says he has a hard time imagining a USMCA deal anytime soon.

“I suspect we’ll be facing a year-by-year review at least for another year,” says Russell. “Whether there’s a deal before the end of the Trump administration, we’ll just have to see.”

In late August, U.S. agriculture leaders encouraged trade negotiators to keep talking following the breakdown in discussions with Canada, noting the need for a good trilateral deal.