What’s Trump’s endgame with global tariffs? Canadian officials say they have a clearer idea
Following a lengthy meeting with U.S. President Donald Trump’s top trade officials, Canadian representatives have gained a clearer understanding of the rationale behind Trump’s insistence on tariffs not just on Canada but on the whole world. David Paterson, Ontario’s representative in Washington, stated that tariffs are now a global policy of the United States, marking a historic change to global trading patterns.
During the meeting with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, it was revealed that the U.S. government’s focus is on addressing its yearly deficit in federal spending, which amounted to $1.83 trillion US in the 2024 fiscal year. To combat this deficit, the U.S. government has outlined three main strategies. This includes a major budget resolution with spending and tax cuts, reducing the size of government through Elon Musk’s Department of Government Efficiency, and implementing tariffs as a new revenue source to attract investment into the United States.
The American plan is to impose tariffs by sector across countries worldwide on April 2. Countries that have a positive relationship with the U.S. will have the opportunity to adjust or mitigate the tariffs. Despite the ongoing trade war between Canada and the U.S., the meeting provided clarity on the U.S.’s trade agenda.
Canada’s ambassador to the U.S., Kirsten Hillman, described the meeting as concrete and highlighted the Americans’ focus on the upcoming April 2 tariff deadline. While discussions were productive, no changes were made regarding the trade war between the two countries. However, following the meeting, Ontario Premier Doug Ford expressed optimism, stating that the temperature between the two nations is lowering, and the talks were productive.
In response to Trump’s tariffs on Canadian steel and aluminum, the Canadian government announced retaliatory tariffs on $29.8 billion worth of American goods. These tariffs target products such as U.S.-made steel and aluminum, computers, sports equipment, and certain cast iron products. Canada is also holding back tariffs on another $100 billion worth of American goods that will be imposed if Trump proceeds with a third round of reciprocal tariffs on April 2.
Overall, the meeting provided valuable insights into the U.S.’s trade agenda and the reasons behind their tariff policies. While tensions remain between the two countries, there is hope for a positive outcome that benefits both nations in the long run.
