President Donald Trump speaks during a meeting with state and local officials about infrastructure in the State Dining Room of the White House in Washington, Monday, Feb. 12, 2018. (AP Photo/Carolyn Kaster)

‘Canada does not treat us right’ says Trump

Trump says ‘Canada does not treat us right’ as he threatens new global tax

President Donald Trump is complaining about Canadian trade practices while threatening some as-yet-undefined international tax that has revived fears he might be contemplating new American import penalties.

The U.S. president made the remarks at the White House on Monday while unveiling a long-awaited infrastructure plan. During a lengthy session with reporters, he complained about countries considered allies of the U.S.

He mentioned one directly to America’s north.

“Canada does not treat us right in terms of the farming and the crossing the borders,” Trump said.

“We cannot continue to be taken advantage of by other countries.”

It’s unclear what he was referring to. In the past, he has complained about Canada’s dairy controls and softwood lumber. Administration officials have also expressed anger over Canada’s wide-ranging attack at the World Trade Organization on the U.S. system for imposing duties.

Meanwhile, the White House downplayed the tax threat Monday and various U.S. media outlets said there was nothing imminent.

Trump did promise more clarity on a new tax. More details could be coming this week, he suggested.

“We are going to charge countries outside of our country — countries that take advantage of the United States,” Trump said. “Some of them are so-called allies but they are not allies on trade. … So we’re going to be doing very much a reciprocal tax and you’ll be hearing about that during the week and the coming months.”

It’s unclear what type of tax he’s referring to. Earlier this year, the administration dropped the idea of a border-adjustment tax in its since-passed fiscal reform, because of widespread opposition on Capitol Hill.

The confusion was compounded by several factors:

—In the U.S., Congress sets tax rates — not the president. And the Congress, which just completed a major tax reform, has shown little inclination to hike taxes.

—Tariff rates, meanwhile, are negotiated at the WTO.

—The idea wasn’t even mentioned in the White House’s 2018 budget proposal — which was released Monday.

The most specific clue Trump offered involved motorycles.

He complained that the U.S. brings in products tariff-free and other countries sometimes charge more than 50 per cent tariffs on the same product: “Harley-Davidson. They’re treated very unfairly in various countries. You know the countries I’m talking about,” Trump said. “So we’re going to be doing very much a reciprocal tax.”

Those motorcycle tariffs are highest in Asia — they don’t exist in North America.

Several trade experts contacted Monday confessed to some confusion about what the president was threatening. Dan Ikenson of the Cato Institute said the only action he could think of might violate international trade law.

It involves a rarely used retaliatory measure from a 1974 U.S. trade law.

“Could be anything, but nothing he could do, while remaining true to the trade rules,” Ikenson said.

“Presumably, he could invoke Section 301 (of the 1974 U.S. Trade Act) and threaten to impose taxes to mitigate, countervail, reverse foreign practices that he finds unfair. (That) could pass muster with U.S. law, but not WTO rules.”

Alexander Panetta, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Vanderhoof commemorates Orange Shirt Day with beading workshop

Participants can learn a traditional Métis craft at CNC Sept. 26

College of New Caledonia offers new automotive glass technician program

The program is offered mainly online, allowing more students to take part from across the north

Local business wins snow removal award

K. Leigh Precision Earthworks picked up Rookie of the Year from Western Canadian company

Todd Doherty was recognized today for his life-saving actions during a flight home

Todd Doherty, Member of Parliament for Cariboo-Prince George, was recognized today for… Continue reading

Decision on Burns Lake’s workforce camp “pending very soon”: Coastal GasLink

Meetings to discuss new camp location postponed due to wildfire situation

Conservation officer frees B.C. deer from flotation gear mishap

BC Conservation Officer Service is reminding residents to keep backyards clear of entanglements

VIDEO: B.C.-born firefighter remembered by MP in emotional speech

Family asks first responders to look after one another in wake of suicide, growing concerns of PTSD

Airline has ‘close call’ with drone while en route to B.C. airport

Jazz Aviation reported the drone sighting near Vancouver to the RCMP and Transport Canada

Tragic accident claims life of B.C. toddler

Fundraising effort has been created to help mom and family

B.C. nanny charged with sex abuse of 3 children

Saanich Police seek potential victims of Johnathon Lee Robichaud from Central Saanich

‘I’m no quitter’ on climate change issues, McKenna says at G7 ministers meeting

David Suzuki says if McKenna believes what she’s saying, she too should quit

VIDEO: Inside an eerily empty mall in Canada

Only nine of 517 retail spaces are open for business as the grand opening postponed to next year

B.C. wildfires burned large areas affected by mountain pine beetles: Experts

The mountain pine beetle epidemic affected more than 180,000 square kilometres in B.C.

Tens of thousands without power following tornado in Ottawa region

Hydro Ottawa says more than 170,000 customers were without power early this morning

Most Read