PALM DESERT, Calif. — The Canadian ambassador to the United States stated on Monday that Canada is willing to increase its purchases from the U.S., including acquiring a new fleet of submarines, to address the concerns raised by President-elect Donald Trump regarding the U.S.-Canada trade deficit.
Ambassador Kirsten Hillman expressed in an interview that Americans should be prepared for immediate price increases if Trump enacts his proposed 25% tariffs on Canadian imports.
Hillman dismissed the notion that Canada could potentially become the 51st state of the U.S., suggesting that such remarks are part of Trump’s negotiating approach. “His negotiating style involves positioning himself in the best possible way for discussions. I believe that’s what this is,” she remarked.
Despite Trump’s repetitive claims regarding the trade deficit between the U.S. and Canada, a country abundant in natural resources that supplies the U.S. with commodities like oil, Hillman asserted that Canada is already the largest importer of U.S. goods. “We are happy to source what we can from the United States. We have some significant military procurement plans on the horizon, such as replacing our entire submarine fleet,” Hillman noted, hinting at possible purchases from the U.S.
She pointed out that 70% of Canada’s military procurement comes from American suppliers, which includes a plan to acquire 88 F-35 fighter jets. Alberta’s Premier Danielle Smith also spoke earlier on Monday, advocating for efforts to close the trade gap by increasing Canadian purchases of American products. Notably, she recently visited Mar-a-Lago, Trump’s Florida residence, to communicate this aim.
Highlighting the $75 billion trade deficit the U.S. experienced with Canada last year, Hillman observed that a significant portion — approximately one-third — of Canada’s exports to the U.S. consists of energy products. She emphasized how trade relations with Canada support over 8 million jobs in the U.S., with Canada being the top customer for 36 states. Hillman pointed out that Canada supplies essential raw materials essential for U.S. manufacturing.
“Implementing a 25% tariff on these products will lead to immediate price hikes for Americans,” Hillman cautioned, noting the economic challenges that consumers are already facing due to rising food prices. She asserted that such a move would be contrary to American interests.
Moreover, she warned that Canada would enact retaliation measures if tariffs were imposed on its goods, which would ultimately drive up costs for American consumers. “Canada will respond. Therefore, your primary customer will make American products more expensive, prompting Canadians to seek alternatives to those products,” she explained.
Hillman clarified that while Canada is not inclined towards a trade war, it would be challenging for the Canadian government to refrain from responding to U.S. actions that negatively impact its citizens. She argued that it does not make logical sense for Trump to reverse progress made during his first term, particularly regarding the renegotiation of the trade agreement with Canada and Mexico.
“We enjoy 99% tariff-free trade with the United States, which is a result of the USMCA,” she stated, referring to the United States-Mexico-Canada Agreement that Trump negotiated. “Why would we want to regress from what has been achieved? It just doesn’t add up.”
Kirsten Hillman acknowledged Trump’s impact in accelerating Canada’s plans to bolster border security. Trump had previously threatened to impose significant tariffs if Canada did not address what he described as a flow of migrants and drugs into the U.S. — despite the reality that the volume from Canada is much lower than from Mexico.
Following these developments, Canada introduced a billion-dollar border security initiative. “We’ve reacted very swiftly because President Trump brought attention to the need for a comprehensive package of improvements,” Hillman stated.
Additionally, Hillman emphasized that the U.S. and Canada face a “generational struggle” against China, identifying it as a formidable rival. She noted that Trump has repeatedly highlighted the economic and security threats posed by Beijing. The ambassador affirmed that Canada plays a crucial role in providing the energy necessary for the U.S. to lead in the artificial intelligence sector.
“Greater cooperation between our countries is imperative — in oil, gas, nuclear, and hydroelectric energy,” Hillman remarked. “If we allow ourselves to work at cross purposes, then China stands to gain. They actively seek every opportunity to drive a wedge between us, which is detrimental to our respective citizens and economies.”