Trudeau says Canada and the U.S. will ‘do good things together’ with Trump in the White House
Prime Minister Justin Trudeau expressed optimism about the future of Canada-U.S. relations under president-elect Donald Trump, highlighting Canada’s history of navigating trade challenges with the U.S. Trudeau emphasized that Canada has already aligned itself with the U.S. on trade issues, particularly concerning China, and believes that a coordinated approach to Chinese trade practices could strengthen the relationship with the incoming administration.
In a recent call with Trump, Trudeau discussed addressing unfair trading practices globally, indicating a shared commitment to tackling issues such as overcapacity and unfair trade practices by China. The two leaders have previously collaborated on imposing tariffs on Chinese-made electric vehicles, demonstrating their ability to work together on trade matters.
However, potential friction may arise with Mexico, a key partner in the North American trade agreement. Trump has threatened to impose steep tariffs on Mexican imports, particularly in the automotive sector, to incentivize manufacturers to relocate production to the U.S. Both Trump and his former ambassador to Canada have expressed concerns about transshipments through Mexico, highlighting the need to protect North American industries.
Ontario Premier Doug Ford echoed these concerns, suggesting that Canada and the U.S. should consider a bilateral trade agreement excluding Mexico due to its role in facilitating Chinese imports. Ford emphasized the importance of preventing transshipment and ensuring fair competition within the North American market.
As Trump considers imposing tariffs on imports, Trudeau is working to dissuade the incoming administration from implementing such policies. While Canada has successfully navigated previous trade disputes with the U.S., the threat of tariffs could have detrimental effects on Canadian businesses and investments. Trade experts warn that the uncertainty surrounding tariffs could lead to economic repercussions for Canada.
Looking ahead, Canada may face challenges related to supply management, a policy that protects Canadian dairy, eggs, and poultry sectors from foreign competition. Trump’s former commerce secretary emphasized that supply management could be a contentious issue in Canada-U.S. relations, signaling potential trade conflicts in the future.
Despite these challenges, Trudeau remains committed to fostering a strong and mutually beneficial relationship with the U.S. under the new administration. By leveraging Canada’s alignment with the U.S. on trade issues and advocating for fair trade practices, Trudeau aims to uphold the interdependence of the North American economies and protect Canadian industries from external threats.