Republican senator says he thinks North American trade pact will protect Canada from Trump’s tariffs

As Canadian officials prepare for the potential imposition of global tariffs by president-elect Donald Trump, Republican Senator Jim Risch from Idaho believes that the current North American Free Trade Agreement (NAFTA) will protect Canada from these tariffs. In an interview with CBC’s The House, Risch emphasized the importance of free trade while acknowledging the need to level the playing field.

Trump’s proposed minimum tariff of 10 per cent on all imports entering the United States has raised concerns about the impact on Canada’s economy, with estimates ranging from 0.4 per cent to five per cent of GDP. However, Risch expressed confidence that CUSMA, the successor to NAFTA, would shield Canada from these tariffs, highlighting the significant role that Canada plays in the flow of trade.

The senator questioned whether the incoming administration would apply tariffs on all imports, suggesting that tariffs are typically targeted at specific products or industries where there is an imbalance. He expressed optimism that a blanket tariff on all imports was unlikely to occur.

Amidst concerns about trade disruption under a second Trump presidency, former Secretary of Commerce Wilbur Ross suggested that tariffs would be a focus, with potential targeting of Canada’s supply management sectors. Trump also nominated Howard Lutnick as his commerce secretary, emphasizing a strong stance on tariffs and trade.

Regarding Canada’s defense spending and Ukraine, Risch criticized Canada’s pledge to meet NATO’s two per cent GDP defense spending target by 2032, noting that smaller European economies have already met the benchmark. He emphasized the need for all allies, including Canada, to increase defense spending.

Trump’s stance on Russia’s war in Ukraine was also discussed, with Risch suggesting that both Russia and Ukraine must heed Trump’s position as he holds important leverage. Risch emphasized that the terms of ending the conflict should be decided by the Ukrainians themselves.

In response to Trump’s promise of mass deportations, Canadian officials and the RCMP have prepared for a potential influx of migrants seeking refuge in Canada. However, Risch downplayed the likelihood of mass deportations to Canada, emphasizing the importance of regulated immigration through legal channels.

Deputy Prime Minister Chrystia Freeland reassured that Canada controls its borders and has plans to ensure border security in the wake of Trump’s election. She emphasized Canada’s welcoming stance towards newcomers in an organized and systematic manner.

As Canada navigates the uncertainties of Trump’s presidency, the reassurances from Senator Risch and Deputy Prime Minister Freeland provide some comfort amidst the looming threat of global tariffs and potential trade disruptions.