Trump's tariffs a 'wake-up call' for Canada: U.S. Senator Grassley

Iowa Senator Chuck Grassley believes President Trump's threat to impose significant tariffs on Canadian goods should prompt Canada to negotiate changes. Grassley, a key supporter of Trump's agenda, emphasized the need for robust trade discussions but cautioned against undermining the CUSMA trade agreement.

“

I think the president is probably using them as a lever.

"These negotiations cannot be used as a way of destroying (CUSMA)," Grassley told The Canadian Press. He noted that while he supports free trade, the current tariff regime is a concern. The U.S. administration claims the new duties are a response to Canadian bans on U.S. liquor, its dairy system, and vehicle quotas.

Canadian officials have been actively engaged in trade talks with their American counterparts. The proposed tariffs, set to take effect August 19, would apply to a range of Canadian goods without exemptions for those compliant with CUSMA. This agreement, formerly NAFTA, was renegotiated under the Trump administration and is currently undergoing a decadal review process.

“

These negotiations cannot be used as a way of destroying (CUSMA).

Grassley suggested Trump aims to "tweak" the agreement and criticized Canada's adherence to dairy access commitments under CUSMA. He expressed optimism for continued friendly relations between the two countries, stating, "I think we are going to have very friendly relations with Canada and we should have."

“

I think we are going to have very friendly relations with Canada and we should have.