Pence: ‘Last thing’ US economy needs is trade war with Canada

Former Vice President Mike Pence said Sunday the trade war between the U.S. and Canada could damage the American economy. 

“American businesses and American consumers pay American tariffs, and I think the last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada,” Pence told host Dana Bash on CNN’s “State of the Union.”

Trade negotiations between officials from the Trump administration and the Canadian government fizzled late in the week, and President Trump’s 50 percent tariffs on roughly $20 billion worth of Canadian goods went into effect on Saturday. 

In response, Canadian Prime Minister Mark Carney said Saturday that goods exported from the U.S. to Canada will face commensurate 50 percent tariffs starting Sept. 8. 

While announcing the impending levies, Carney said his government will “take this step reluctantly.”

The Canadian leader added, “Reluctantly because we recognize that some of these measures will raise costs and reduce choice for Canadians. Reluctantly because we recognize that some U.S. companies and some U.S. states are innocent bystanders in a dispute that they did not want.”

“Reluctantly because this trade dispute is preventing Canada and America from doing so much good that we could do together,” Carney remarked, before noting the move “is in the best interest” of his country.

Trump on Sunday accused the Canadian government of wanting the “benefits of being a State” without being one. Throughout his second term, the president has argued the U.S. should annex Canada. 

Pence, who noted he was present for the first Trump administration’s negotiations regarding the U.S.-Mexico-Canada trade agreement, expressed hope the “hot rhetoric” Trump and Carney have exchanged takes a backseat to substantive trade talks.

“My hope is, for the sake of American families, and for the sake of the American economy, that what we’re looking at here is negotiation and not confrontation in a trade war, and that’s how I would advise the president,” the former vice president said Sunday. “Drive a hard bargain.
But let’s pursue free trade with free nations.”

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