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

Earth Day planting supports wetland habitats

Earthwise invites locals to join project restoring delicate area

Letter: One Dump Truck Too Many!

There is something going on in our town (oh! I mean, just… Continue reading

Fraser Health patients to see 23% more knee, hip replacement surgeries

First-available surgeon approach will reduce waitlists, B.C. health minister says

Proper engagement needed for quarry development: expert

Impact on residents, species should be communicated, evaluated

Wildlife centre operator concerned about leg-hold traps

Elizabeth Melnick of Abbotsford says contraptions are injuring innocent animals

VIDEO: B.C. ‘escapologist’ stuns judges on Britain’s Got Talent

Matt Johnson says televised water stunt was closest he’s come to death

WATCH: Moms Stop The Harm respond to opioid crisis

Someone asked her if she does the work for her son. McBain said: “No, actually. I do it for your son.”

Been a long day? Here’s cute puppies in training

Group is training next batch of assistance dogs at Vancouver International Airport

Justin Beaver reunited with parks staff in Chilliwack

Fraser Valley Regional District put out call earlier this month for the return of teaching tool

B.C. skydiver lands safely after cutting away main chute

Greater Victoria emergency services called after witnesses saw spiralling chute

Police, coast guard searching after man falls into Fraser River

Boats, divers and a helicopter involved in looking for man who fell into the water in Delta

Elderly man who went missing from a BC Ferry still hasn’t been found

Delta Police investigation has deemed incident non-suspicious in nature

VIDEO: Mounties seek help identifying ‘makeup bandit’ in bank robbery

Suspect appears to have used makeup or fake tanner to possibly cover tattoos or scars, police say

Cartoonist captures public mood following Toronto, Humboldt tragedies

Cartoonist said he was trying to find a bit of positivity with an image that has garnered attention

Most Read