The urgency stems from the fact that Canada is facing unprecedented trade storms. The United States continues to retaliate against their steel, aluminum and automobile sectors. Ambassador to the United States Kirsten Hillman emphasized that negotiating an end to these tariffs is Canada’s top priority in discussions with the U.S. government. The tariffs, which include a 25% economy-wide duty introduced in March, have raised concerns about the stability of the trading relationship between the two countries.
Things only got worse as soon as the tariffs went into effect. President Donald Trump countered by extending a limited stay on tariffs for imports that met CUSMA standards. This temporary relief didn’t last long. In April, Trump actually triggered a global trade war by proposing a new round of “reciprocal” tariffs. This unexpected development has caused Canada to call for frustrating changes to CUSMA, changes that Trump himself has recently called for changing.
According to Hillman, the first negotiations with Trump’s administration will focus around lifting these tariffs. She stressed urgency to address these pocketbook concerns. Taking these steps will ensure there is a stable, long-term cross-border trading environment for Canadian and United States businesses.
Seeking Stability in the Relationship
“Dealing with those tariffs, and getting Canada into a position where we are finding stability in the trading relationship, is our number one priority with the Americans,” – Kirsten Hillman
At a recent meeting at the White House, Prime Minister Mark Carney took Trump directly to task on these tariffs. Carney, in particular, raised the national security exemptions in U.S. trade act. These exemptions have made it easy for tariffs to be implemented against Canada. He noted that Trump linked these tariffs to unfounded claims of large-scale fentanyl smuggling through the Canadian border. This strange legislative link did catch attention and start conversation.
Through all those fiery fights, Trump said the pleasure was all his to talk to Carney — and that it was an “honor.” He appreciated their dialogue – in public and behind the scenes. Hillman kept the door open on negotiations, but without CUSMA being on the table from Canada’s side, there really isn’t much for there to be negotiated.
“There’s a strong signal from the top level in this country that Canada is a priority,” – Kirsten Hillman
The active and cooperative dialogue between Canada and Mexico is equally important to the success of these negotiations. Both countries are actively engaged in discussions that could lead to more favorable terms for trade agreements in North America.
Hillman underscored that all new agreements rest on first ensuring a priority is the removal of Trump’s tariffs on Canadian exports. They need to be front and center issue in the negotiations. Rep. Sires sent a positive note regarding advances in negotiations. She underscored that Canada would be looking for win-win solutions that work for both countries.
“They agreed to negotiate a deal that works for both countries,” – Kirsten Hillman
Author’s Opinion
The constant push for tariff relief is understandable given the negative economic impact. While it’s crucial to maintain fair trade practices, the ongoing tariff war creates instability for businesses that rely on cross-border trade. If both sides want to prevent further damage to their economies, long-term diplomatic solutions must be prioritized over short-term political gains.
Featured image credit: Wikimedia Commons
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