Canada

No commitment from Trump team to drop tariff threat after meeting with Joly, LeBlanc in Florida

Two of Prime Minister Justin Trudeau’s top cabinet ministers took decisive action on Friday by meeting with two of U.S. president-elect Donald Trump’s cabinet picks in an effort to prevent the looming threat of tariffs on Canadian exports. Foreign Affairs Minister Mélanie Joly and Finance Minister Dominic LeBlanc traveled to Florida to provide a briefing to the presidential transition team on the government’s strategy for enhancing border security and to emphasize the detrimental effects that Trump’s proposed steep tariffs on all Canadian exports to the U.S. would have on both countries’ economies.

The primary objective of the meeting was to dissuade Trump from imposing a 25 per cent tariff on all goods entering the U.S. from Canada and Mexico starting on Jan. 20, his inauguration day. This ultimatum was issued unless the countries take action to curb the influx of drugs and migrants across their borders. Joly and LeBlanc engaged in discussions with Trump’s nominee for secretary of commerce, Howard Lutnick, and his selection for secretary of the interior, Doug Burgum, at the president-elect’s Mar-a-Lago resort. While the ministers did not secure a commitment to halt the tariffs, the meeting was described as “productive” and positive, with ongoing discussions planned for the future.

The Trudeau government has been working diligently to counter the tariff threat, which has included the prime minister and former minister of public safety, LeBlanc, traveling to Mar-a-Lago for a dinner meeting with Trump. Additionally, a $1.3-billion suite of measures was introduced to disrupt the flow of fentanyl and enhance 24/7 surveillance of the border. On the other hand, Trump has continued to focus on Canada through social media posts, including teasing Trudeau and suggesting that Canadians would be better off as the 51st state.

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During the meeting, Trump’s concerns regarding the U.S. trade deficit with Canada were raised. The president-elect has consistently mischaracterized the trade deficit, attributing it to the U.S. subsidizing the Canadian economy. Economists have clarified that the deficit is primarily due to Canada’s significant petroleum exports, notably crude oil. The challenge for Canada lies in addressing Trump’s trade deficit concerns as he aims to renegotiate the terms of the trade agreement between the U.S., Canada, and Mexico.

The overarching goal of the meeting was to determine if Canada’s proposed border measures would be sufficient to dissuade Trump from imposing tariffs. Building a strong relationship and maintaining open lines of communication with key members of the transition team were also emphasized. While the ministers did not meet with Trump’s border czar Tom Homan as planned, they remain committed to presenting Canada’s border plan and advocating against the adverse impacts of the proposed tariffs on both countries.

In conclusion, the meeting between Canadian ministers and Trump’s cabinet picks marks a crucial step in addressing the tariff threat and fostering bilateral cooperation on border security issues. The ongoing dialogue and collaboration between the two nations will be essential in navigating the challenges posed by potential tariffs and strengthening the economic relationship between Canada and the United States.

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