Prime Minister Justin Trudeau has expressed optimism about working with U.S. president-elect Donald Trump, even as Canada braces for potential trade challenges under his leadership. Speaking from Vancouver on Tuesday, Trudeau said that while Trump’s trade policies focus primarily on China, Canada is prepared to align with the U.S. in addressing Chinese trade practices.
Trudeau pointed out Canada’s recent decision to implement a 100 per cent surtax on Chinese electric vehicles, mirroring U.S. actions, as an example of cooperation that could strengthen bilateral ties. “Canada is aligned with the U.S. already and we’re going to be able to do good things together,” he stated, emphasizing that the two countries have a history of collaborating as “friends and partners.”
However, Trudeau acknowledged the potential for future friction, particularly concerning Mexico, the third member of the USMCA trade agreement. Trump has hinted at imposing substantial tariffs on Mexico to discourage manufacturing there, potentially affecting supply chains and Canadian interests. Ontario Premier Doug Ford echoed these concerns, suggesting that Canada and the U.S. should consider a bilateral trade agreement that excludes Mexico unless it enforces stricter measures on Chinese transshipments.
The possibility of a 10 per cent tariff on all U.S. imports, which could impact Canada, also looms large. While Trudeau recalled Canada’s successful response to Trump’s steel and aluminum tariffs in his first term—retaliatory measures that led the U.S. to lift the tariffs—trade experts warn that the mere threat of new tariffs could undermine investment and economic stability in Canada. “Even if we get back to the status quo, Canada’s really going to take a hit,” said Laura Dawson, executive director of the Future Borders Coalition.
Additionally, supply management in the dairy, egg, and poultry sectors could once again become a contentious issue. Wilbur Ross, Trump’s former commerce secretary, indicated that Trump would likely push for more access for American farmers to the Canadian market, revisiting demands that Trudeau resisted during the previous NAFTA renegotiations.
As Canada prepares for these potential trade disputes, Trudeau remains hopeful that dialogue and shared economic interests will prevail. “We responded to tariffs he brought in with a demonstration that the interdependence of our economies means there are great jobs on both sides of the border that rely on the smooth flow of goods,” Trudeau said, hinting at strategies Canada may employ if future tensions arise.
