Two top Canadian Cabinet ministers have met with President-elect Donald Trump's nominee for commerce secretary at Mar-a-Lago as Canada tries to avoid sweeping tariffs when Trump takes office.
Finance Minister Dominic LeBlanc and Foreign Minister Mélanie Joly met with Howard Lutnick, Trump’s nominee for commerce secretary, as well as North Dakota Gov. Doug Burgum, Trump’s pick to lead the Interior Department.
Trump has threatened to impose 25% tariffs on all Canadian products if Canada does not stem what he calls a flow of migrants and fentanyl entering the United States — even though far fewer of each cross the border from Canada than from Mexico, which Trump has also targeted.
“Minister LeBlanc and Minister Joly had a positive, productive meeting at Mar-a-Lago with Howard Lutnick and Doug Burgum, as a follow-up to the dinner between the Prime Minister and President Trump last month,” said Jean-Sébastien Comeau, spokesman for LeBlanc.
Comeau noted the ministers outlined measures within Canada’s billion-dollar plan to bolster security at the U.S. border and reiterated their commitment to combat the harmful effects of fentanyl, which has claimed many lives on both sides of the border.
Despite the positive nature of the dialogue, Canadian officials express concern over the persistent focus of U.S. officials on the trade deficit. A senior Canadian official stated, on the condition of anonymity, due to lack of authorization to speak publicly, “The Americans remain preoccupied with the U.S. trade deficit with Canada and want it to shrink.”
While President Trump has crafted narrative around the trade deficit—falsely labeling it as equivalent to a subsidy—Canada’s ambassador to the U.S., Kirsten Hillman, has referred to the $75 billion trade deficit but clarified, “a third of what Canada sells to the U.S. comprises energy exports.” When energy prices are elevated, this complicates deficit calculations, making discussions challenging.
Around 60% of U.S. crude oil imports and 85% of U.S. electricity imports are sourced from Canada, with Alberta alone supplying 4.3 million barrels of oil daily to American markets, which consume approximately 20 million barrels per day of crude oil.
The Trump transition team did not respond to requests for statements on the meeting, but additional discussions are anticipated shortly.
Minister Joly is expected to have dinner later with U.S. Sen. Lindsey Graham as Canadian leaders engage frequently with U.S. counterparts to mitigate the risk of tariffs.
Trump's social media activity has not gone unnoticed; recently, he provoked Prime Minister Justin Trudeau by referring to him as “the Governor of the 51st state.” Trudeau, maintaining his composure, redirected the conversation by posting a nostalgic video to social media entitled, “Some information about Canada for Americans,” which featured NBC journalist Tom Brokaw discussing the strong ties and historical collaborations between Canada and the U.S.
“Some information about Canada for Americans,” read Trudeau's post on X, sharing the video originally aired during the 2010 Vancouver Olympics. Brokaw noted, “in our darkest hours, Canada has been with us,” reinforcing their long-standing friendship.
Trudeau has indicated the consequences are bilateral if sweeping tariffs materialize, emphasizing the significant trade relationship where nearly $3.6 billion Canadian dollars ($2.7 billion) worth of goods and services cross the border daily. Canada stands out as the leading export destination for 36 U.S. states, showcasing the interlinked economic realities of both nations.
To elucidate contrasting border issues, U.S. customs data reflected stark disparities: agents seized just 43 pounds of fentanyl at the Canadian border last fiscal year, contrasting sharply with 21,100 pounds intercepted at the Mexican border. This data underlines the diverse challenges faced on both fronts.
Most fentanyl entering the U.S., linked to approximately 70,000 overdose deaths annually, primarily derives from Mexican drug traffickers utilizing precursor ingredients from Asia.
On immigration matters, the U.S. Border Patrol reported 1.53 million migrant encounters at the border with Mexico between October 2023 and September 2024, significantly eclipsing the 23,721 encounters recorded at the Canadian border during the same period.
With these recent developments, future negotiations will likely play a pivotal role not only for Canadian-U.S. relations but also for the broader North American economic framework.
