TORONTO — Prime Minister Justin Trudeau announced on Thursday that he will reinstate a dedicated Cabinet committee focused on Canada-U.S. relations, aiming to tackle the concerns his government has regarding the prospect of another Donald Trump presidency.
Deputy Prime Minister Chrystia Freeland, who also holds the finance minister position, will lead this committee. Other essential officials, including ministers responsible for foreign affairs, public safety, and industry, will also be part of this group.
According to Trudeau’s office, the Cabinet Committee will hone in on significant issues affecting Canada and the U.S. should Trump secure a second term as president. Canada relies heavily on trade, with approximately 75% of its exports destined for the United States.
During Trump’s first term, his initiatives to renegotiate the North American Free Trade Agreement (NAFTA) and discussions of potential tariffs on Canadian automobiles were viewed as serious threats to the Canadian economy.
Trudeau reached out to Trump on Wednesday to extend his congratulations, and the two leaders spoke about the new trade agreement established during Trump’s first term—the U.S.-Mexico-Canada Agreement (USMCA), which replaced NAFTA.
Despite previous derogatory comments made by Trump regarding Trudeau, relations between the two nations have been historically strong. Freeland took the opportunity to address reporters twice on Wednesday, striving to reassure the Canadian populace.
“I understand that many Canadians are feeling apprehensive. I want to assure everyone wholeheartedly that Canada will weather this situation,” Freeland stated. “Our relationship with the United States is robust, and this includes our connection with President Trump and his administration. It’s worth noting that our current trade dynamics are based on the agreements forged by President Trump.”
During the election campaign, Trump suggested imposing tariffs ranging from 10% to 20% on imported goods, even hinting at higher rates during some addresses. Nelson Wiseman, a political science expert from the University of Toronto, indicated that Canada should brace for the possibility of new tariffs and calls to augment its military spending.
In 2023, Canada was projected to allocate 1.33% of its GDP to military expenditures, falling short of NATO’s 2% benchmark that its member countries are expected to meet. Trump has previously advocated for NATO allies to increase their defense funding to lessen the financial burden on the United States.
Wiseman expressed his belief that any modifications to the trade agreement would be moderate, akin to the adjustments made during Trump’s initial presidency. He mentioned that while tariffs could pose challenges to the Canadian economy, they would not lead to a debilitating effect. Canada holds several advantages in trade negotiations, including counter-tariffs, the interests of American businesses, and its reserves of critical minerals.
The Canadian government points out that the U.S. and Canada are each other’s largest trading partners, with nearly CAD 3.6 billion (USD 2.7 billion) in goods and services exchanged daily across the border throughout 2023. The intimate ties between the two nations are unmatched globally, with close collaboration on defense, border security, and law enforcement. There is also a significant cultural overlap, including shared interests in sports such as baseball, hockey, basketball, and soccer.
Approximately 400,000 people cross the longest international border daily, while around 800,000 Canadians reside in the United States. Robert Bothwell, a historian and international relations expert at the University of Toronto, cautioned that Canadians should remain vigilant about potentially hasty decisions regarding tariffs and trade.
“How would you feel if Uncle Donald woke up one day and acted on whatever came to him from Fox News?” Bothwell remarked, encapsulating the unpredictability surrounding potential policy shifts.