Prime Minister Justin Trudeau sounded upbeat on Tuesday about the prospect of working with U.S. President-elect Donald Trump, saying Canada has dealt with Trump’s trade threats before and can do so again.
Trudeau said President Trump’s trade comments focused primarily on China and that Canada has already indicated a willingness to act in line with the United States against China if necessary.
Prime Minister Trudeau suggested Canada could benefit from President Trump’s efforts to take steps to address China’s abusive trade practices and its cooperative approach to trade.
President Trump has long accused China of intentionally committing crimes. devalue a currency And they flood the world with cheap products made by workers who earn little, displacing American-made products and forcing jobs overseas.
“The Trump administration is very concerned about international pressure, particularly China’s overcapacity and unfair trade practices,” Trudeau said. “Canada is already aligned with the United States and we can work together. We will be able to accomplish this.”
Trudeau said Canada and the United States worked together as “friends and partners” during President Trump’s first term and “we intend to do it again.”
In response to a reporter’s question about how his government would react to President-elect Donald Trump’s imposition of 10% tariffs, Prime Minister Justin Trudeau spoke about the renegotiation of NAFTA and the “mutualization” of the two countries’ economies during the Trump era. “dependence” was pointed out.
Prime Minister Trudeau’s talk of “coordinating” with the U.S. is a reference to Canada’s decision in August to follow the U.S. and impose punitive tariffs on Chinese-made electric vehicles to protect Canada’s emerging EV industry.
As of October 1, Canada has imposed a 100% surcharge on Chinese-made EVs, effectively doubling the price of imported vehicles and making EVs significantly less attractive to Canadian consumers. .
According to the first post-election phone call between Prime Minister Trudeau and President Trump, the two discussed “addressing unfair trade practices in the global economy.”
Canada and the United States are working together on EVs, but there could be friction with Mexico, the third partner in the Continental Free Trade Agreement.
President Trump has said he could impose hefty tariffs on Mexico to make it less attractive for automakers to build factories there. Cars imported from the country are subject to tariffs of up to 200%.
There was Significant increase in automobile manufacturing in Mexico In recent years; Chinese EV maker BYD, with most of its products destined for the United States, is looking to locate a factory in Mexico that could supply the U.S. market.
“All I’m saying is… we’re going to put a number on it that won’t sell a single car,” President Trump said of Mexico in October, referring to the threat of tariffs. “We don’t want them to harm our car companies.”
He has also threatened to impose steep tariffs on Mexico if it does not do more to stem the flow of migrants into the United States.
Kelly Craft, Trump’s former ambassador to Canada, said the president-elect also has concerns about transshipments.
This is a practice that allows countries such as China to export goods to Mexico and sell them to Canada and the United States duty-free under the Canada-U.S.-Mexico Trade Agreement, which was renegotiated during President Trump’s term.
“There are manufacturers in Mexico that are producing products for the United States and Canada, and Trump wants to reduce that,” Kraft said in an interview with Radio-Canada before last week’s presidential election. “We would like to have manufacturing capacity in Mexico.”
“Why would China want to bring auto parts into the U.S. through Mexico? Or steel or aluminum? No, we need to protect North America. We can say we’ll protect the U.S. by not allowing anything from China to pass through. Body” Mexico. “
Ontario Premier Doug Ford expressed similar concerns Tuesday, suggesting Canada and the U.S. should go it alone on a future free trade agreement and exclude Mexico.
Ontario Premier Doug Ford said Mexico is acting as a backdoor for imports from China, squeezing Canadian workers. Ford released a statement on Tuesday hinting at the possibility of a bilateral trade agreement between the United States and Canada.
“Since signing the new NAFTA, Mexico has allowed Chinese cars, auto parts and other products to become a backdoor into Canadian and U.S. markets,” Ford said in a statement.
“If Mexico does not counter transshipment in a way that is at least comparable to Canadian and U.S. tariffs on imports from China, then Mexico should not have a seat at the table and should not enjoy access to the world’s largest economy. do not have.”
Regarding President Trump’s threat to impose a minimum 10 per cent tariff on all imports, a policy that could also apply to Canada, Prime Minister Trudeau said Tuesday that the policy would reduce the burden on businesses and the workers they employ. He said he is working to convince the next president that it is a bad idea for people who want to protect themselves. both sides of the border.
Canada faced U.S. steel and aluminum tariffs during President Trump’s first term, a policy that was economically damaging. Canada responded with dollar-for-dollar retaliatory tariffs, forcing the United States to withdraw.
If that happens, Prime Minister Trudeau suggested it’s a gambit Canada might pursue again.
“We countered the tariffs he introduced by showing that the interdependence of our economies means there are great jobs on both sides of the border that depend on the smooth flow of goods.” he said. “That will continue to be the case.”
But trade experts say the mere threat of tariffs could be damaging to Canada because it could force companies to think twice about investing in Canada.
Laura Dawson is a Canada-U.S. relations expert and Executive Director of the Future Borders Coalition.
“Investors are starting to move away from Canada. Production is starting to move to other countries. Even if we get back to the status quo, it’s not all good that ends well. Canada is going to be really hurt,” Dawson told CBC. told the news.
The federal government is bracing for trade disruption under second-term President Donald Trump, and former Commerce Secretary Wilbur Ross says President Trump will not only focus on tariffs during his second term, but will also reduce Canadian supplies. He said the administration would also be targeted.
Canada could face another trade challenge in President Trump’s second term: continued U.S. opposition to supply management policies that protect Canada’s dairy, egg and poultry sectors from external competition.
The United States has long said it wants to give its farmers more access to the Canadian market, but Trudeau has pushed back against President Trump’s call to eliminate supply controls in the NAFTA renegotiation.
Wilbur Ross, President Trump’s former commerce secretary, said in an interview Sunday that supply management could be another blow to Canada-U.S. relations.
“I think the real message is that we’re going to crack down even harder than we did last time on trade abuses by different countries. That’s a real fact,” Ross told CBC. rosemary burton live.
“Supply management is a very hot topic.”
