(Halifax) The Trudeau government is preparing for any eventuality in the face of the U.S. presidential election. Team Canada, established to defend the country’s interests, has reached out to 42 governors to remind them how integrated the two economies are.
“I don’t think we have any reason to be concerned, quite frankly, under either administration,” Canadian Ambassador to the United States Kirsten Hillman said at a news briefing in Halifax where federal ministers were meeting.
Canada-U.S. relations were the subject of several discussions during this cabinet retreat in anticipation of the resumption of parliamentary work on September 16. First, U.S. National Security Advisor Jake Sullivan attended a working dinner on Sunday evening. Then, former Trump deputy trade representative CJ Mahoney and former Canadian chief negotiator Steve Verheul, who led the reopening of the North American Free Trade Agreement (NAFTA), addressed ministers on Monday evening, in addition to a roundtable on Tuesday with Ambassador Hillman and her predecessors David MacNaughton and Frank McKenna.
At the heart of the discussions, how should Canada prepare for a possible Trump or Harris administration? How would trade with our southern neighbours be affected? Trade between the two countries totalled $968.4 billion in 2023, including $594.8 billion in exports, according to Statistics Canada data.
Protectionism is one of the major issues in the presidential election. Republican candidate and former President Donald Trump is promising to impose 10% tariffs on imports into the United States. During his first term, from 2016 to 2021, he forced the renegotiation of NAFTA, now known as the Canada-United States-Mexico Agreement (CUSMA). The first revision of the agreement is scheduled for 2026.
“I think candidate Trump has some thoughts about international tariffs that could be complicated for Canada, but I also think that applying them in Canada will be very difficult for the United States,” said Mr.me Hillman. And so when we do have that discussion, if it ever happens – if he’s elected and we’re part of that discussion – I’m confident that we’re going to do it in a way that works for Canada.”
From “nice to strategic”
Team Canada, led by Industry Minister François-Philippe Champagne and International Trade Minister Mary Ng, has travelled to 33 states to date since January.
“Obviously, there’s a lot that’s happened in the United States recently,” Champagne said.
PHOTO KELLY CLARK, THE CANADIAN PRESS
Minister of International Trade Mary Ng, Canadian Ambassador to the United States Kirsten Hillman and Minister of Industry François-Philippe Champagne
“But one thing remains, and that is that the strategy that we had in place at the beginning is even more important today… I would say than ever,” he added.
About a month ago, Donald Trump was set to face incumbent President Joe Biden in the November election. Biden withdrew from the race after a disastrous televised debate, and Vice President Kamala Harris became the Democratic nominee.
“Her positions are similar to the Biden administration that she is part of, but she will put her own spin on it and that is something we are watching closely,” said Ambassador Hillman. She is also monitoring the mood in the US Congress.
Canada has also faced protectionist policies from this Democratic administration. The U.S. Department of Commerce increased the tariff on Canadian lumber from 8.05% to 14.54% two weeks ago.
“We’re going from nice to strategic,” Champagne said. “That’s what I always tell them.”
Supply chains that are “more integrated now than ever” are bringing the two countries closer together. “We’re talking, for example, about semiconductors that are being finalized in Bromont,” he added. “When we talk about the titanium that we make here, when we talk about electric vehicles, when we talk about critical minerals, the White House and our American colleagues understand the importance of our relationship.”