Canada's ambassador to Washington has expressed Canada's willingness to increase purchases from the United States, including potentially buying the next fleet of submarines, in response to President-elect Donald Trump's concerns about the U.S.-Canada trade deficit. The ambassador also cautioned that if Trump imposes 25% tariffs on Canadian products, prices for Americans could rise immediately.
The ambassador dismissed Trump's suggestion of Canada becoming the 51st U.S. state as a negotiating tactic. She emphasized that Canada already buys more from the U.S. than any other country and is open to further increasing purchases, such as sourcing military equipment like submarines from the U.S.
Canada's military procurement heavily relies on American sources, with plans to purchase 88 F-35 fighter jets. The ambassador highlighted that trade with Canada supports over 8 million jobs in the United States and that Canada is the top customer for 36 U.S. states.
Concerns were raised about the potential impact of tariffs on Canadian goods, with warnings that such actions could lead to increased prices for Americans. The ambassador reiterated that Canada would retaliate if tariffs were imposed, potentially making American products more expensive for Canadian consumers.
While Canada aims to avoid a trade war, the ambassador emphasized the need for responses if U.S. decisions negatively affect Canadians. She praised the United States-Mexico-Canada Agreement negotiated by President Trump, stressing the importance of maintaining tariff-free trade between the countries.
Canada has accelerated border security plans in response to U.S. demands, with a billion-plus investment in enhancing security measures. The ambassador highlighted the shared challenges faced by the U.S. and Canada in dealing with China, emphasizing the need for cooperation to counter economic and security threats posed by Beijing.
