TORONTO (AP) — Two Canadian Cabinet ministers have concluded discussions at Mar-a-Lago without receiving guarantees from President-elect Donald Trump concerning his threats of imposing tariffs on Canadian goods. The talks, which the Canadians labeled as 'productive', desire to pave the way for potential future negotiations.
Finance Minister Dominic LeBlanc and Foreign Minister Mélanie Joly held meetings with Howard Lutnick, Trump’s nominee for commerce secretary, alongside North Dakota Governor Doug Burgum, who is Trump’s selection for the Interior Department.
Trump has publicly threatened to impose substantial tariffs, around 25%, on all Canadian imports, arguing, somewhat erroneously, it is necessary to offset what he describes as America's trade deficit with Canada. 'The Canadians remain concerned about the fixation the Americans have on the trade balance,' noted one official, who preferred to remain anonymous.
During their meeting, the ministers emphasized Canada’s billion-dollar strategy to fortify border security and combat the flow of fentanyl, reiteratively pointing out the detrimental effects these tariffs would have on both nations’ economies. The Canadian ministers stressed to the U.S. leadership 'the shared commitment to strengthen border security as well as combat the harm caused by fentanyl.'
Canada's Ambassador to the United States, Kirsten Hillman, previously indicated there was approximately a $75 billion trade deficit for the U.S. with Canada last year, primarily rooted in high energy export levels. Notably, 60% of U.S. crude oil imports and 85% of U.S. electricity imports come from Canada.
Both ministers, LeBlanc and Joly, have also been vocal about the potential economic repercussions should these tariffs materialize, highlighting how nearly $3.6 billion (CAD $2.7 billion) of goods and services traverse the border daily between the two nations. This substantial figure outlines Canada's reliance on the U.S. as its top export destination.
Trump's administration is set to enact aggressive economic policies, as voiced by former deputy prime minister Chrystia Freeland before her resignation. 'The incoming administration is pursuing aggressive economic nationalism, and we have to take the tariff threat with utmost seriousness,' Freeland stated.
With discussions aimed at addressing Trump’s tariff threats, lawmakers hope to avoid adverse economic outcomes on both sides. LeBlanc’s office is also set to engage with Tom Homan, Trump’s appointed 'border czar', after the Christmas holiday.
Trump's barbs directed at Prime Minister Justin Trudeau have been frequent, as he jokingly referred to him as the 'Governor of the 51st state'. Though Trudeau hasn’t directly responded to the jibes, he shared materials demonstrating the close historical ties between the U.S. and Canada, pointing out the longstanding respectful relationship of both countries.
Interestingly, the U.S. Border Patrol reports differing statistics related to border crossings and drug seizures between Canada and Mexico. Recent data indicated fewer fentanyl seizures at the Canadian border, with only 43 pounds confiscated compared to the staggering 21,100 pounds at the Mexican border. The significant majority of fentanyl entering the U.S. is manufactured by Mexican drug cartels.
Despite the clarity on border control issues, the dynamics of immigration remain contentious, especially as Trump’s administration adopts stringent anti-immigrant policies. Homan has vocalized sentiments claiming Canada’s immigration laws are 'too lax' but acknowledged the constructive dialogues underway with Canadian officials.
Future discussions between U.S. and Canadian officials appear likely as both sides look to navigate these contentious trade relations. Experts believe retaliatory measures from Canada would compound the damages to already intertwined economies. The U.S. and Canada share an expansive trading relationship, which both governments strive to preserve amid aggressive tariff threats. Time will tell whether the recent discussions at Mar-a-Lago will yield fruitful outcomes on this pressing trade issue.
