Canada already in talks to avoid Trump tariffs

Canada has already begun talks with members of Donald Trump's circle about avoiding new trade tariffs if he's elected U.S. president this fall.

If it happens, the Canadians have warned of retaliation.

The public line from Canada for months has been that Trump's proposed 10 per cent tariff should not apply on this continent because of the Canada-U.S.-Mexico trade deal.

But CBC News has learned that a deeper conversation is already underway; that Trump's allies aren't promising any relief, and that the sides are discussing what a negotiation might look like to maintain tariff-free trade.

The bottom line: Within months, Canada could find itself in trade negotiations again with Trump — if he wins this election, as polls suggest he very well might.

The Trump representatives being non-committal on exempting Canada from tariffs include none other than Robert Lighthizer, his former top trade official who has already said he would play either a formal or informal advisory role to the next Trump administration.

In their discussions with Canadian political and business representatives, he and others close to Trump have made clear there's no guaranteed exemption.

Canada's ambassador to the U.S. acknowledged some of these discussions in public remarks at the Republican convention in Milwaukee on Thursday.

«We're talking to Trump's advisers on this,» Kirsten Hillman said during a panel hosted by Politico and CNN.

«We are really urging them to consider what the implications would be.»

The consequence of a U.S. tariff on Canada, Hillman said, would likely include retaliation from Ottawa — with counter-penalties on specific products.

«Inevitably our government will be under enormous pressure to reciprocate,» she said. «So then we have a 10 per