Amid Trump Trade Worries, China Tariffs Give Canada ‘Firm’ Ground: Freeland
As Donald Trump prepares for his return to the Oval Office in 2025, Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland is positioning Canada to navigate the impending trade landscape. Following the first meeting of the newly revived cabinet committee on Canada-U.S. relations, Freeland emphasized the importance of a unified stance toward China as a foundation for upcoming negotiations with the United States.
Trade Relations Under Trump
Freeland’s remarks come in the wake of Trump’s victory in the 2024 U.S. presidential election, during which he pledged to implement blanket tariffs on all goods entering the country. This includes intentions to renegotiate the Canada-United States-Mexico Agreement (CUSMA), which was established during his first term.
The news of Trump’s return has sparked concern among leaders in Canada’s steel and aluminum sectors, recalling the 25% tariffs on Canadian steel and 10% tariffs on aluminum imposed during Trump’s first administration. These tariffs prompted Canada to retaliate with its own measures against U.S. goods.
Lessons Learned
Freeland noted that Canada has learned valuable lessons from its prior negotiations with Trump. “What’s important about that whole experience is that Canada and the United States agreed, at the end of the day, that it didn’t make sense for our two countries to have those tariffs imposed,” she stated. This agreement highlights the economic interdependence between the two nations.
She also pointed out recent collaborative efforts between Canada and the U.S. to impose tariffs on Chinese steel, aluminum, and electric vehicles, positioning both countries as a united front against China. Freeland expressed confidence that this alignment would strengthen Canada’s standing as a reliable trading partner.
Diplomatic Relations
David MacNaughton, Canada’s former ambassador to the U.S., echoed Freeland’s sentiments, emphasizing the importance of being in sync with American officials regarding China. He warned that any divergence in trade policy could lead to significant challenges for Canada.
Brian Kingston, president of the Canadian Vehicle Manufacturers Association, added that Canada has the potential to secure exemptions from Trump’s tariffs by becoming a preferred supplier of critical minerals as the U.S. seeks to reduce its reliance on China. He suggested that if Canada enhances its mining capacity, it could emerge in a stronger position under a Trump administration.
Addressing Trade Challenges
Freeland, who met with Canadian steel producers in Hamilton, Ontario, acknowledged the ongoing challenges in trade, particularly concerning circumvention tactics that allow exporters to bypass tariffs by routing goods through friendly countries.
When asked if she was the right person to negotiate with Trump in a second term, Freeland confidently asserted her readiness to face renewed pressures. She highlighted her established relationship with Robert Lighthizer, Trump’s former trade czar, who is expected to play a significant role in the upcoming administration.
“In my experience, President Trump respects strength and he respects people and countries who are strong and clear in defending their national interests,” Freeland stated. “That’s what I’ve always done, and that’s what I will continue to do.”
Conclusion
As Canada braces for the implications of Trump’s return, Freeland’s strategic focus on a unified front against China and her readiness to negotiate with the incoming administration may prove crucial. With potential tariff challenges on the horizon, Canada aims to leverage its position to foster stronger trade relations while navigating the complexities of U.S. policy under a familiar leader.
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