Canada seeks to avoid a trade war as US tariffs loom
On December 27, 2024, senior members of Canada’s Cabinet, including Finance Minister Dominic LeBlanc and Foreign Minister Melanie Joly, met with US President-elect Donald Trump’s nominees for key roles in his administration, Howard Lutnick and Doug Burgum, at Trump’s Mar-a-Lago estate in Florida. The talks focused on the looming threat of 25% tariffs that Trump has pledged to impose on all Canadian imports starting in January 2025.
These tariffs, Trump has stated, will remain until Canada addresses issues related to undocumented migrants and the flow of fentanyl into the United States. Prime Minister Justin Trudeau has vowed to retaliate with measures that could spark a trade war, raising concerns over the impact on the Canadian economy, where over 75% of exports go to the US and nearly two million jobs depend on trade.
During the meeting, Canada’s ministers emphasized their commitment to strengthen border security and tackle the fentanyl crisis, as part of Canada’s Border Plan, which is set to cost C$1 billion. Both Lutnick and Burgum agreed to relay this information to Trump. The talks were described as “positive and productive,” offering hope for a resolution that could prevent a trade war between the neighboring countries.
