Prime Minister Justin Trudeau sounded an upbeat observe Tuesday on the prospect of working with U.S. president-elect Donald Trump, saying Canada has dealt together with his commerce threats earlier than and might accomplish that once more.
Trudeau mentioned Trump’s commerce rhetoric is especially targeted on China — and Canada already has proven a willingness to maneuver in lockstep with the U.S. in opposition to the Chinese language when needed.
Trudeau steered a coordinated strategy to Chinese language commerce, and measures to sort out its abusive commerce practices, may put Canada in Trump’s good graces.
Trump has for years accused China of intentionally devaluing its foreign money and flooding the world with low cost items made by staff who earn little or no, displacing merchandise made within the U.S. and forcing jobs abroad.
“The Trump administration is considerably involved about worldwide pressures, notably overcapacity by China and unfair commerce practices by China. Canada is aligned with the U.S. already and we’re going to have the ability to do good issues collectively,” Trudeau mentioned.
Canada and the U.S. labored collectively as “mates and companions” in Trump’s first time period “and we’ll do this once more,” Trudeau mentioned.
WATCH: Canada braces for tariffs, commerce disruption with 2nd Trump presidency
Canada braces for tariffs, commerce disruption with 2nd Trump presidency
The federal authorities is bracing for commerce disruption below a second Donald Trump presidency, with former secretary of commerce Wilbur Ross saying Trump is not going to solely concentrate on tariffs, however goal Canada’s provide administration sectors throughout his second time period.
Trudeau’s discuss of being “aligned” with the Individuals is a reference to Canada’s resolution in August to comply with the U.S. in imposing punitive tariffs on Chinese language-made electrical autos to guard the nascent EV trade right here.
As of Oct 1., Canada is levying a 100 per cent surtax on Chinese language-made EVs, which successfully doubles the value of these imported autos, making them far much less engaging to customers on this nation.
A readout from Trudeau’s first name with Trump after the election mentioned the 2 mentioned “addressing unfair buying and selling practices within the international financial system.”
Whereas Canada and the U.S. are aligned on EVs, there could possibly be friction forward with the third accomplice within the continental free commerce pact: Mexico.
Trump has mentioned he may slap massive tariffs on Mexico — he is floated tariffs as excessive as 200 per cent on autos imported from that nation — to make it much less engaging for automakers to construct crops there.
There’s been an enormous uptick in automobile manufacturing in Mexico lately; most that product is destined for the U.S. Chinese language EV maker BYD has been scouting out places for a Mexican manufacturing unit that would provide the U.S. market.
“All I am doing is saying … I am going to put a quantity the place they can not promote one automobile,” Trump mentioned of Mexico in October, referring to threatened tariffs. “I do not need them hurting our automobile corporations.”
Automobiles exit the Common Motors meeting plant in Villa de Reyes, exterior San Luis Potosi, Mexico. (Rebecca Blackwell/AP Photograph)
He is additionally threatened to impose steep tariffs on Mexico if it would not do extra to cease the circulation of migrants into the U.S.
Trump’s former ambassador to Canada, Kelly Craft, has mentioned the president-elect can also be apprehensive about transshipments.
That is the apply of nations like China transport items to Mexico to allow them to then be bought into Canada and the U.S. tariff-free below the Canada-U.S.-Mexico Settlement on commerce, which Trump renegotiated in his time period.
“There are producers producing merchandise for the U.S. and Canada in Mexico, and he desires to cut back that, he desires us to have indigenous manufacturing functionality,” Craft mentioned of Trump in an interview with Radio-Canada earlier than final week’s presidential election.
“Why would you need China bringing auto components via Mexico into the U.S.? Or metal or aluminum? No. We have to shield North America as a result of I can let you know we’re going to shield the USA, making sure that nothing from China passes via Mexico.”
Ontario Premier Doug Ford raised comparable considerations Tuesday when he steered Canada and the U.S. ought to go it alone on a future free commerce deal and depart Mexico out.
WATCH: Ford urges Canada, U.S. to chop Mexico out of free commerce settlement 
Ford urges Canada, U.S. to chop Mexico out of free commerce settlement
Ontario Premier Doug Ford says Mexico is undercutting Canadian staff by serving as a again door for Chinese language imports. On Tuesday, Ford issued a press release floating a attainable bilateral commerce settlement between the U.S. and Canada.
“Since signing on to the brand new NAFTA, Mexico has allowed itself to turn out to be a backdoor for Chinese language vehicles, auto components and different merchandise into Canadian and American markets,” Ford mentioned.
“If Mexico will not struggle transshipment by, on the very least, matching Canadian and American tariffs on Chinese language imports, they should not have a seat on the desk or get pleasure from entry to the most important financial system on the planet.”
As for Trump’s risk to degree a minimal 10 per cent tariff on all imports — a coverage that could possibly be utilized to Canada — Trudeau mentioned Tuesday he is working to persuade the incoming president that coverage could be a nasty concept for companies and the employees they make use of on each side of the border.
Canada confronted U.S. tariffs on metal and aluminum in Trump’s first time period, a coverage that was economically damaging. Canada responded with dollar-for-dollar retaliatory tariffs and obtained the U.S. to again down.
Trudeau steered it is a manoeuvre Canada may pursue once more if it involves that.
“We responded to tariffs he introduced in with an illustration that the interdependence of our economies means there are nice jobs on each side of the border that depend on the graceful circulation of products,” he mentioned. “That is going to proceed to be the case.”
However commerce consultants say the mere risk of tariffs could possibly be damaging for Canada as a result of it may drive companies to suppose twice about investing right here.
Laura Dawson is a Canada-U.S. relations knowledgeable and the manager director of the Future Borders Coalition.
“Traders begin leaving Canada. Manufacturing begins shifting elsewhere. Even when we get again to the established order, it isn’t all’s nicely that ends nicely. Canada’s actually going to take a success,” Dawson advised Ontario Chronicle.
Canada may confront one other commerce subject in Trump’s second time period — the ongoing U.S. opposition to produce administration, the coverage that shields Canadian dairy, eggs and poultry sectors from exterior competitors.
The U.S. has lengthy mentioned it desires its farmers to have extra entry to the Canadian market, however Trudeau pushed off Trump’s calls for to get rid of provide administration when renegotiating NAFTA.
Cows in a dairy farm in Saguenay, Que., on Tuesday, January 23, 2024. (Jacques Boissinot/Canadian Press)
Wilbur Ross, Trump’s former commerce secretary, mentioned in an interview Sunday that offer administration may once more be a sore spot for Canada-U.S. relations.
“I feel the true message is he will be cracking down much more than final time on the abuses of commerce by varied international locations. That is going to be an actual reality,” Ross advised CBC’s Rosemary Barton Reside.
“Provide administration is a extremely popular subject.”
