Congressman Mike Kelly was in Erie Tuesday. On a visit to the Erie News Now studios, he discussed rising gas prices and the latest trade tensions between the United States and Canada.
Kelly, a Republican who represents Pennsylvania’s 16th Congressional District, said there is limited action Congress can take to directly bring down gas prices. He attributed the increase largely to global market forces and said he hopes a resolution to the war with Iran could help ease pressure on energy markets.
Rep. Kelly also addressed the escalating trade dispute with Canada, saying he remains hopeful the two countries can resolve their differences quickly.
The latest development came at midnight Tuesday, when the United States imposed a targeted ban on certain Canadian imports, including alcoholic beverages, dairy products and motorcycles. The measures affect nearly $1 billion worth of Canadian goods and are the latest escalation in the ongoing U.S.-Canada trade dispute.
The ban is relatively small compared with the roughly $880 billion in annual two-way trade between the United States and Canada, but analysts say it adds to tensions between the longtime trading partners.
Congressman Kelly said Canada is a good neighbor and ally and pointed to the long-standing trade relationship between the two countries, including trade involving his own business.
At the same time, Kelly said he understands what President Donald Trump is trying to accomplish through the trade measures.
“We’ve always wanted to help out the rest of the world, but then the rest of the world finds a way to keep us out of their markets,” Kelly said. “And so I think what the president is trying to do is level the playing field.”
And Rep. Kelly acknowledged that changing long-standing trade relationships is difficult.
“It’s a difficult thing to do because we have decades of relying on stuff that was cheaper someplace else but we couldn’t get into their markets,” he said. “I think he’s trying to say look, if you want to do it that way, we can do it too, but it’s not good.”
The current trade dispute began escalating over the summer after the Trump administration imposed 50% tariffs on about $20 billion worth of Canadian goods. Canada responded with tariffs of its own, and the two countries have since imposed additional restrictions.
The latest U.S. import bans took effect Tuesday and cover specific categories of Canadian alcohol, dairy products and motorcycles rather than all goods in those industries.
Kelly is seeking another term in the U.S. House. He is facing Democrat Justin Wagner, an Army veteran and automation engineer, in the 16th Congressional District race.