Donald Trump pledged during his campaign to increase import tariffs , but Canada’s ambassador to the United States warns that this move could prompt other countries, including trade partners, to strike back.
In an interview on Friday, Ambassador Kirsten Hillman stated that Canada believes the U.S.-Mexico-Canada Agreement , a trade deal negotiated during Trump’s first term, should exclude Canada from his plan to impose 10% tariffs on goods worldwide if re-elected. Chinese imports would face a 60% tariff.
“It’s not a one-way street — other countries, if that policy is enacted, will respond,” said Hillman, who helped negotiate the USMCA. “That could potentially raise costs for everybody.”
A The second Trump White House should anticipate trade partners responding with reciprocal tariffs, as they did for duties on steel and aluminum in his first term, Hillman said. Canada, the U.S., and Mexico negotiated the USMCA at Trump’s insistence to replace the North American Free Trade Agreement, which he blamed for the loss of U.S. manufacturing jobs. Although Trump once threatened to end free trade in the region, the nations crafted a deal that garnered broad bipartisan support in the U.S. Congress. They have since focused on deepening integration, especially in critical industries like semiconductors, after the disruption of the COVID-19 pandemic.
Hillman, a former trade lawyer and negotiator, doesn’t foresee the world splitting into rival trade blocs, even though she agrees that it makes sense to bring back some supply chains to the region for vital inputs such as food and energy.
Hillman played down concerns about a USMCA review set for 2026, viewing it as an opportunity to enhance the deal rather than renegotiate it.
With the U.S. election approaching, Hillman mentioned that Canada continues to build relationships across the U.S. using its network of consulates to establish ties with both Republican and Democratic lawmakers and aides.
Hillman added that she has been in contact with some Trump advisers since he left office.
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- “Clearly, that’s crucial to gather as much information as possible from every region to better understand the potential outcomes after the next election,” she expressed.
—With assistance from Josh Wingrove.
Bloomberg.com
