Trump’s ambassador predicts Canada trade deal — with a catch
There is a mix of good and bad news coming out of the U.S. Ambassador to Ottawa, Pete Hoekstra, regarding Canada’s relationship with the United States. On the positive side, he believes that a new Canada-U.S. agreement is within reach in the near future, which could benefit both nations. However, the bad news is that tariff-free trade is unlikely to make a comeback.
Speaking at a conference in Michigan, Hoekstra expressed optimism about the potential for a stronger Canada-U.S. relationship in the end. He emphasized that Canada and the U.S. are not competitors, with China being the real competition in sectors like the auto industry. Despite this positive outlook, Hoekstra made it clear that tariffs will remain a part of doing business with the United States.
According to the ambassador, President Trump has been firm on his stance that tariffs will be imposed on countries looking to trade with the U.S. This leaves Canada in a unique position, as negotiations could result in the country having the best trade access to the U.S. out of any nation. While most tariffs on Canada have been lifted, there are still tariffs in place on products like steel, aluminum, and certain goods not covered by the Canada-U.S.-Mexico agreement.
It appears that discussions between Canada and the U.S. will happen in two phases, first addressing specific issues before moving on to updating the broader trade agreement. However, Hoekstra’s predictions may not always align with the views of President Trump, as evidenced by conflicting statements regarding annexation and other matters.
Despite the challenges, Hoekstra remains hopeful for a positive outcome in the relationship between the two countries. He expressed concern about what he sees as anti-American sentiment in Canada, pointing to actions like banning U.S. liquor sales and a lack of pro-U.S. voices in the business community. Moving forward, it will be essential for both parties to find common ground and work towards a mutually beneficial agreement.
