Joly believes diplomacy could stop U.S. tariffs, but Trump ‘unpredictable’ – National
Foreign Affairs Minister Melanie Joly says she believes a diplomatic solution to preventing U.S. tariffs on Canadian goods is possible, but noted the “unpredictable” administration of U.S. President Donald Trump makes that far from certain.
Joly made the comments Monday after a meeting with the federal cabinet committee on U.S.-Canada relations and ahead of her trip this week to Washington, where she will meet with new U.S. Secretary of State Marco Rubio to discuss Trump’s tariff threat.
“When it comes to preventing tariffs, this is our number one priority and we’re working on it every day,” she told reporters in Ottawa.
“Now, we believe that diplomacy can work, and that’s why we’re having private conversations … I’ve had numerous conversations where the reaction was actually very positive, but meanwhile there’s still a lot of work. This administration in the U.S. is very unpredictable, so we have to be ready.”
The minister told reporters in Ottawa that the federal government, along with the provinces and territories, are working on both preventing tariffs and a potential response if those tariffs happen on Feb. 1, as Trump has threatened.
“We will be ready on day one” with that response, Joly said, without detailing what that would look like.
Trump has promised to impose 25 per cent tariffs on Canadian imports, citing imbalances in trade and defence spending. The federal government’s attempts to address Trump’s concerns about border security, including enforcement and detection investments, have not convinced Trump to back down.
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Public Safety Minister David McGuinty, speaking alongside Joly on Monday, said the RCMP and Canada Border Services Agency are “making huge progress” on implementing the government’s border security plan and demonstrating Canada’s commitment to combating fentanyl and human trafficking.
“We are tightening up our border even further to deal with these challenges,” he said.
To try and prevent the tariffs, Canadian officials from both Ottawa and the provinces have made repeated pilgrimages to Washington to pitch enhanced partnerships on trade and energy.
Joly’s comments echoed those made by David Paterson, Ontario’s representative to the U.S., in an interview that aired Sunday on The West Block, who also suggested a deal could be made with the Trump administration.
Paterson said he’s had positive conversations with Republican lawmakers in Washington who understand America’s dependence on Canadian goods, particularly crude oil from Alberta and critical minerals like nickel from Ontario, and the need for a North American economic alliance against China and Russia.
“You just can’t unscramble the eggs,” he told Mercedes Stephenson. “You certainly can’t do that in the short term. So our proposal is, let’s make a bigger omelette: what are the things we could do together? And I think that is the pathway that will resolve this, ultimately.
“It’s really the case of finding the deal that will be acceptable and exciting for the president,” Paterson continued. “And I actually believe we can get there, but I think we will feel a lot of pain beforehand, unfortunately, because I think tariffs are real.”
In the interview, Paterson criticized the federal government’s approach to the tariff threat in comparison to the provinces, and on issues raised by the Trump administration like immigration and defence spending.
“We have our own swim lanes,” he said. “(The provinces are) responsible for electricity and for owning our natural resources, and that’s really positive and interesting.
“The federal swim lanes, they’re tough ones: immigration, borders, defence. … I think we’ve been a little negligent at the federal level for a bit of time and we need some improvement there.”
Trump has recently mused that “we don’t need” any of the top imports from Canada, including oil and gas, vehicles, lumber and dairy, arguing the U.S. can produce all those things itself.
Over the weekend, Trump told reporters aboard Air Force One that Canada “wouldn’t exist … as a country” without the U.S. “subsidizing” its northern ally.
“Canada is totally reliant on us,” he said. “Therefore, it should be a state.”
Trump has repeatedly equated subsidies with trade deficits, and has claimed the U.S. trade deficit with Canada is between US$200 billion and US$250 billion.
Data from the U.S. Census Bureau puts the deficit for goods traded with Canada at US$64.3 billion in 2023, meaning Canada sold more goods to the U.S. than it bought — a pattern that has existed at various levels for the past 40 years.
Joly on Monday pointed out that deficit is due to energy exports to the U.S., and that if those are removed the U.S. actually has a $60-billion trade surplus with Canada.
“We are the biggest customer to the U.S.,” she said.
“We are the biggest customer in 36 states within the U.S. So there are lots of allies in the U.S. and in Washington, and that’s why we’re doing the work to make sure that ultimately, we’re able to get to a win-win situation.
“That’s why we’re addressing the concerns regarding the border — which is really important, and we should never forget that this is a priority … and meanwhile we will continue to do the work on making sure that ultimately, facts prevail.”
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