Director of the National Economic Council Kevin Hassett bizarrely blamed Canada’s rhetoric for the deterioration in relations with the U.S.
Since returning to office Trump has repeatedly threatened to annex Canada, one of America’s closest allies, and make it the 51st state. He has referred to former Canadian Prime Minister Justin Trudeau as “governor” and started an unnecessary trade with the country which is America’s second-biggest trading partner.
Despite this, in an interview with CNBC’s Closing Bell Overtime on Monday, Hassett blamed Canada and Trudeau for the deteriorating relationship between the two allies.
“I think that Justin Trudeau and the President didn’t exactly get along, and Canada kept making it worse and worse with their rhetoric,” Hassett told host Jon Fortt in a clip highlighted by Mediaite “But now I think that we’ve had the prime minister come in and meet the president and begin a new, closer relationship. So, I’m sure everything will work out fine with Canada in the end.”
“And don’t forget that exempting the USMCA part of trade was a really, really big plus for Canada,” he added. “And so, they’ve been treated very, very well throughout this renormalization of trade relations.”
In early March, Trump placed a blanket 25% tariff on Canada before it was suspended after Canadian officials promised to take more action to stem the flow of fentanyl into the US through its border (less than 1% was seized across the US–Canada border).
However, a 25% tariff is still in place for imported goods from Canada that are not compliant with the United States-Mexico-Canada free trade agreement (USMCA) which Trump brokered in his first term. There is also an additional 25% tariff on all cars, steel, aluminum and auto parts coming from Canada.
