U.S. President Donald Trump launched another trade tirade against Canadians, accusing them Tuesday of sneaking their American shopping back home — all because of what he calls “massive” tariffs on American goods.
Speaking to a gathering of small business owners in Washington, Trump again blasted the North American Free Trade Agreement, saying the U.S. can no longer afford to be the “stupid country.”
Canada imposes such onerous tariffs on U.S. products — shoes, for instance — that people are forced to “scuff ’em up” in order to “smuggle” them home, the president said, seemingly confusing tariffs with duties.
The Footware Distributors and Retailers of America, though, rebuked Trump for his comment in a statement. The trade group’s president and CEO Matt Priest said that “anyone from anywhere” was welcome to purchase shoes in the United States:
The President seems misinformed about footwear trade. Consumers buying shoes in America already pay a very high tariff, upwards of 37.5 percent and 67.5 percent. NAFTA is not treating footwear consumers in America unfairly, the American government itself has not lowered footwear duties in a meaningful way in over 80 years. If the President is concerned about treating American footwear companies and consumers fairly, then he should have signed the TPP to lower footwear costs in America. Canada signed the TPP and will eventually get duty free shoes from Vietnam, a major sourcing hub, where American brands will ship directly into Canada duty free. Canadian’s have no real reason to “smuggle” their shoes because their government is already helping lower their costs through proper trade deals.
Trump said he’s looking out for American farmers and manufacturers, as he again took issue with Canada’s supply management system for dairy farmers.
“We can no longer be the stupid country; we want to be the smart country,” he said to rousing applause.
More American goods will be subjected to Canadian tariffs in the coming weeks.
On July 1, Canada is set to impose retaliatory action of $16.6 billion on U.S. products after Trump slapped tariffs on aluminum and steel — and he has threatened more to come on automobiles.
Foreign Affairs Minister Chrystia Freeland told the Commons international trade committee that the “absurd and insulting” U.S. action will meet with a firm response.
She said the government has finished consulting with Canadians on its proposed list of American consumer goods — dozens of items from Kentucky bourbon, to candles, to felt-tipped pens — and will be making some tweaks on which ones will be slapped with new duties.
“We will be using that feedback to modify the list,” she said. “We will not escalate, and we will not back down.”