Trump's trade rep defends new tariffs on Canada

Trump's trade rep defends new tariffs on Canada

Jamieson Greer calls U.S. trade deficit 'national emergency' that justifies tariff policy

U.S. President Donald Trump's point man on tariffs is justifying the plan to slap new tariffs of 50 per cent on many Canadian products as part of a broader strategy aimed at reducing the U.S. trade deficit.

The trade deficit, which hit $1.2 trillion US in 2025, is a "national emergency," U.S. Trade Representative Jamieson Greer told a Senate finance committee hearing on Wednesday.

"That national emergency still persists, and so our policy remains the same," Greer said. "We are committed to continuing to use tariffs and to negotiate deals to support the industrialization of our economy, protect American workers and increase their wages and shrink our trade deficit."

Several Democrat senators on the committee gave Greer some heat over the new 50 per cent tariffs on Canadian products, which are due to take effect on Aug. 19 and apply to some $20 billion US worth of annual exports, ranging from plywood to milk.

Greer also faced questions on the status of the broader renegotiation of the Canada-U.S.-Mexico Agreement (CUSMA).

He said he is hopeful of having "options" for some form of deals with both Canada and Mexico in 2026.

Greer hopes to have 'options' ready on trade with Canada, Mexico this year

"I would love to have between now and and the end of the year at least some arrangements, one with Canada, one with Mexico," Greer said.

"I'm hopeful that before the end of the year, we can have at least options for President Trump and the leaders of Canada and/or Mexico to consider."

Some Canadian goods face higher tariffs than China

Sen. Ron Wyden, the top Democrat on the committee, accused the administration of having "lost the plot" on tariffs.

"Just a few days ago, Canada, our closest neighbour, basically learned they were going to get 50 per cent tariffs. At the same time, when it comes to China, one of the biggest trade cheats there is, it seems that the administration rolls out the red carpet," Wyden told the hearing.

Greer pushed back on Wyden's claim that the Trump administration is giving China more favourable trade terms than Canada. He said only "a small handful" of Canadian products will face higher tariffs than those that originate in China.

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He also disputed other Democratic senators' concerns that the latest tariff move against Canada will hurt U.S. farmers and exporters' access to Canadian markets or face Canadian retaliation.

"I talked with my Canadian counterpart yesterday. They did not say they're going to retaliate," Greer said. Although he did not name his "Canadian counterpart," Greer's equivalent in Ottawa is Canada-U.S. Trade Minister Dominic LeBlanc.

Mike Crawley is a correspondent for CBC News, based in Washington. He began his career as a newspaper reporter in B.C., spent six years as a freelance journalist in various parts of Africa, then joined the CBC in 2005. Mike reported on Ontario politics for 15 years. He was born and raised in Saint John, N.B.