Prime Minister Mr Trudeau held a meeting with US President Biden in February. One Canadian official, referring to the trade talks, said, “we feel we are off to the races here”. However, the Biden administration has set double duties on imports of Canadian lumber and requested a dispute panel on Canada’s dairy import quotas.
The US President is pushing through a “Buy America” procurement plan that will damage supply chains with Canadian exporters.
The trade complications between Mr Trudeu’s government and the Democrat administration is awkward for Canada’s ruling centre-left Liberals because they have historically enjoyed better relationships with the US Democrats.
Candice Bergen, deputy leader of Canada’s Conservative Party, said that “Canada’s economic relationship with the United States is breaking down rapidly”.
He added, “for months the Liberals have been telling us how much they agree with the Americans”.
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President Biden has also revoked the permit needed to build the environmentally controversial Keystone XL oil pipeline.
In denying the infrastructure project a permit Mr Biden has effectively dismantled a project that would have brought Canadian crude to US markets.
Another Canadian pipeline could be forced to close, this time in Michigan.
The governor of the US state wants the pipeline, operated by Canada’s Enbridge Inc, to close.
Canada has urged Washington to intervene, but the Biden administration refuses to do so.
Despite the disagreements between the two sides, Canadian Foreign Minister Marc Garneau played down suggestions of growing tensions.
He said: “We can’t eliminate all the different issues that are important for the Americans.
“We have to deal with them one by one.
“There is always going to be a bit of back and forth between our two nations.”