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Home News Canada Prepared To Increase U.S. Purchases To Avoid Trade War, Ambassador Says

Canada Prepared To Increase U.S. Purchases To Avoid Trade War, Ambassador Says

by Celia

In an effort to address concerns about the U.S.-Canada trade imbalance, Canada is prepared to make additional purchases from the United States, including acquiring a new fleet of submarines, according to Canada’s Ambassador to the U.S., Kirsten Hillman.

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In an interview with The Associated Press , Hillman responded to President-elect Donald Trump’s threats of imposing 25% tariffs on all Canadian goods, warning that such a move would quickly drive up prices for American consumers. The ambassador further addressed Trump’s controversial remarks about potentially making Canada the 51st state, calling it a negotiating tactic often employed by the President.

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Canada remains the largest buyer of American goods, with over 70% of its military procurement sourced from the U.S., including plans to purchase 88 F-35 fighter jets. Hillman pointed to Canada’s ongoing need to replace its entire submarine fleet as an example of a potential large-scale purchase from American manufacturers. “We are happy to source what we can from the United States,” she said.

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In response to Trump’s claims of a $75 billion U.S. trade deficit with Canada, Hillman highlighted that a significant portion of Canada’s exports to the U.S. consists of energy products, which support over 8 million U.S. jobs. She cautioned that implementing tariffs on Canadian goods would result in higher prices for American consumers, particularly in a time of rising living costs.

Hillman made it clear that Canada would retaliate if tariffs were imposed, which could result in higher costs for U.S. products. “Your number one customer will make American products more expensive, and Canadians will likely look for alternatives,” she said, underscoring the potential economic ripple effects of a trade war.

Despite this, Hillman emphasized that Canada is not seeking conflict, but it would be difficult for the government to refrain from responding to actions that harm Canadian interests. She questioned the logic behind reversing the U.S.-Mexico-Canada Agreement (USMCA), a trade deal negotiated during Trump’s first term that made trade between the U.S. and Canada almost entirely tariff-free.

Hillman also discussed Canada’s efforts to enhance border security, following Trump’s initial threats of tariffs if Canada did not address what he described as a flow of migrants and drugs from the country. In response, Canada has expedited plans for comprehensive border security enhancements, with a billion-dollar initiative underway.

Looking ahead, Hillman stressed the importance of U.S.-Canada cooperation, particularly in countering China’s growing influence. She emphasized that collaboration between the two nations on energy resources, such as oil, gas, and electricity, is crucial to the economic and security interests of both countries.

With the U.S. and Canada facing a critical period in their trade relationship, Hillman’s remarks reflect Canada’s willingness to meet the U.S. halfway while also defending its interests. The next steps in this trade dispute could significantly shape future relations between the two neighbors.

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