Background on Key Figures and Context
The United States is set to resume trade negotiations with Canada following the Canadian government’s removal of a digital services tax targeting American tech companies, as announced by Kevin Hassett, the White House economic advisor. President Donald Trump had previously urged Canadian officials to eliminate the tax during the G7 summit in Canada.
Immediate Resumption of Trade Talks
Hassett confirmed on Fox News that the US will immediately restart trade discussions with Canada. This development comes after Canada’s decision to scrap its digital services tax aimed at US tech firms. Hassett stated, “Absolutely,” when asked about resuming negotiations.
Secretary Bessent Warns of Potential Higher Tariffs
Meanwhile, US Treasury Secretary Scott Bessent cautioned on the same day that certain countries might face higher tariffs after July 9, even if they are negotiating in good faith. Bessent emphasized that any potential extensions would depend on President Trump’s decision.
Bessent, who previously suggested negotiating extensions, expressed hope for a “flurry” of trade agreements before July 9. After this date, the US tariff rates of 10% on products from numerous countries will revert to the previously announced range of 11% to 50%, as declared by Trump on April 2.
Bessent’s Conditions for Tariff Extensions
Bessent warned countries negotiating in good faith that they must remain cooperative. If negotiations fail due to their obstinacy, the US may revert to the tariff levels announced on April 2. Bessent expressed his hope that this scenario would not materialize.
Key Questions and Answers
- What is the main reason for resuming trade negotiations with Canada? The US is resuming talks following Canada’s removal of a digital services tax targeting American tech companies.
- Who are the key figures mentioned in this article? Kevin Hassett, White House economic advisor, and Scott Bessent, US Treasury Secretary, are the main figures mentioned.
- What tariff changes are expected after July 9? Certain countries may face higher tariffs if negotiations are not successful, with US tariff rates on products from numerous countries potentially increasing to the previously announced range of 11% to 50%.
- What is the digital services tax that Canada had previously imposed? The digital services tax targeted American tech companies operating in Canada, prompting the US to consider trade negotiation resumption.
