Trump hints at new tariffs on Canadian fertiliser as trade tensions deepen

Donald Trump

President Donald Trump on Monday, during a meeting at the White House, indicated that he may introduce new tariffs on key agricultural imports, specifically Indian rice and fertiliser from Canada, as trade talks with both countries show little sign of resolution.

He said so during a meeting in which he unveiled $12 billion aid in fresh support for American farmers.

Bloomberg reported that the US President said that he knows about the rise in frustration among producers who feel undercut by cheaper foreign goods. Several farmers at the event said low-priced imports were eroding their ability to compete.

The president said he would “take care” of alleged dumping of Indian rice into the US. Some farmers have blamed imports for falling rice prices, saying countries like India, Vietnam and Thailand are undercutting their crops.

“They shouldn’t be dumping,” Trump said. “I mean, I heard that, I heard that from others. You can’t do that.”

Trump similarly suggested he could target fertilizer imported from Canada to boost domestic production.

“A lot of it does come in from Canada, and so we’ll end up putting very severe tariffs on that, if we have to, because that’s the way you want to bolster here,” Trump said. “And we can do it here. We can all do that here.”

The US president is facing mounting pressure to address high consumer prices and persistent inflation, which has created voter dissatisfaction that poses a political risk for Republicans heading into next year’s midterm elections. That includes farmers, a reliable pro-Trump constituency that has nonetheless struggled in part due to market factors including the president’s tariff regime.

Trump had previously exempted some fertilizers like potash and urea from so-called reciprocal tariffs he placed on Canada, while products compliant with the North American trade deal negotiated in Trump’s first term are levied at a lower rate.

Both Canada and India have sought trade agreements to stabilize their trading relationships with the US, though negotiators have struggled to strike deals. Trump slapped 50% tariffs on Indian goods in August to penalize it for its trade barriers and purchases of Russian oil. A team of US negotiators is set visit India this week to continue talks, though a breakthrough agreement to lower the tariffs is not expected.

Trump has previously threatened to increase tariffs on Canadian products by 10% in response to an advertisement by the province of Ontario that is critical of his trade agenda, which would have increased the country’s tariff rate on goods not covered by the North American trade deal to 45%. In recent days, Trump has also suggested letting that trilateral deal lapse.