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Canada to buy next fleet of submarines from US to offset trade deficit: report

"[Trump] has a negotiating style which involves positioning himself in the best way he can for discussions."

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"[Trump] has a negotiating style which involves positioning himself in the best way he can for discussions."

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Canadian officials said Monday that the country will be buying more submarines from the United States in an effort to offset the trade deficit the US has with its northern neighbors. The move is also an effort to prevent Trump from implementing tariffs on the goods sold in America from Canada.

In an interview with the Associated Press, Canada's Ambassador to Washington Kirsten Hillman said, “[Trump] has a negotiating style which involves positioning himself in the best way he can for discussions. I think that is what this is."

Trump has threatened to impose a 25 percent tariff on goods coming into the United States from Canada unless it fulfills certain obligations such as shutting down the flow of drugs and illegal immigration going into the United States. In addition to this, Trump has slammed the trade deficit with Canada as an issue that needs to be resolved.

“We are happy to source what we can from the United States. And we have some big military procurements coming up for example, replacing our entire submarine fleet,” Hillman added. “Maybe those are some purchases that can happen from the US”

70 percent of all military arms bought by Canada are through the United States, which includes 88 F-35 fighter jets. Alberta's Premier Danielle Smith told reporters on Monday that narrowing the gap in trade between Canada and the United States is a better choice than having to deal with the proposed tariff. The message comes after Smith went to Mar-a-Lago over the weekend to see the president-elect.

The US has a trade deficit with Canada at around $75 billion and Hillman noted that many of the exports from Canada are for energy. “Adding 25% tariffs to those products will raise the price for Americans almost immediately,” Hillman added. “And at a time when the cost of living is challenging, when food prices are high, it seems like the wrong direction to go in.”

Although since Trump has threatened to impose the tariff, Canada has also picked up its plan to enforce the border, something that the incoming Trump administration has been seeking from America's neighbors to the north.

“We have moved really quickly, I’ll be honest, because President Trump focused the mind to put together a full package of improvements,” Hillman added.
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