Chrystia Freeland said a unified stance on China will give Canada a “solid foundation” in upcoming trade negotiations with the United States and President-elect Donald Trump.
Deputy Prime Minister and Finance Minister Freeland spoke to reporters on Friday after the first meeting of the newly revived Cabinet Committee on Canada-US Relations, which she will once again chair.
She compared the committee to a task force set up during the Covid-19 pandemic, which regularly brought ministers together to address an “urgent issue”. In this case, it is the relationship between Canada and the United States that is set to see border and trade ties in the spotlight under the incoming Trump administration.
Trump, who was declared the winner of the 2024 US presidential election on Wednesday, promised during the election campaign to impose comprehensive tariffs on all goods coming into the country as part of his economic strategy. He also said he would look to renegotiate the Canada-United States-Mexico Agreement (CUSMA), which was signed under his first administration.
News that Trump is set to return to the White House in 2025 has sparked panic among leaders of Canada’s steel and aluminum industries. The first Trump administration imposed 25% tariffs on Canadian steel and 10% tariffs on aluminum in 2018, a tactic that lasted for nearly a year and saw Canada impose retaliatory tariffs on American goods.
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But Freeland said Friday that Canada “learned a lot” from its negotiations with Trump in his first term.
“What’s important about this whole experience is that Canada and the United States ultimately agreed that it didn’t make sense for our two countries to impose those tariffs,” she said.
“To me, this is a very strong point of evidence of the fundamental economic rationale, the fundamental economic benefit that both countries get from the economic relationship.”
Freeland also pointed to joint steps taken this year in Canada and the United States to impose tariffs on Chinese steel, aluminum and electric vehicles.
By positioning geographic neighbors as a united front against China, Freeland argued that the United States would see Canada as a reliable trading partner that could match the American juggernaut on its economic and geopolitical priorities.
“Canada is very aligned with the United States in this regard. “This is the last area where I see a solid foundation for our work together,” she said.
David MacNaughton, Canada’s ambassador to the United States during Trump’s term, told Mercedes Stevenson Western bloc Last week, US officials on both sides of the aisle were “pleased” that Canadian trade policy was aligned with the US on China.
“I think we have to see ourselves as being on the same page with them regarding the relationship with China, because if we don’t, we will have real problems,” he said.
Brian Kingston, president of the Canadian Automobile Manufacturers Association, told Global News this week that he sees Canada being able to gain exemptions from Trump’s tariff proposals by becoming a preferred exporter of critical minerals as the United States shifts away from China.
“If the Trump administration moves more aggressively in its approach to China, Canada is ideally positioned to be that strong partner and ally and to help that shift happen. So I think there is an opportunity.”
“If we combine that with efforts to increase our mining capacity and be the supplier of choice for Americans, I think we can come out of this in a much better position.”
Freeland, who met with Canadian steel producers in Hamilton, Ont., on Thursday, acknowledged the country has a lot to do on the trade front, particularly in cracking down on fraud that could prompt exporters to send steel across friendly borders to avoid costly tariffs.
But when asked on Friday whether she was the right person to negotiate with Trump for a second and final term, Freeland insisted she was ready for renewed pressure.
She also highlighted her relationship with Robert Lighthizer, Trump’s former trade czar who is expected to play a key role in the president-elect’s second administration as well.
“In my experience, President Trump respects strength and respects people and countries who are strong and clear in defending their countries and defending their national interests,” Freeland said.
“That’s what I’ve always done, and that’s what I will continue to do.”
—With files from Global News’ Sean Boynton
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