Chrystia Freeland, Canada’s Deputy Prime Minister and Finance Minister, believes that taking a unified stance towards China will provide Canada with a solid foundation for upcoming trade negotiations with the United States and president-elect Donald Trump. She chairs the newly revived cabinet committee on Canada-U.S. relations, comparing it to the COVID-19 task force that addressed urgent issues. With the incoming Trump administration set to focus on border and trade relations, Freeland highlighted the need for Canada to assert its economic relationship with the U.S.
The news of Trump’s return to the White House in 2025 has caused concern among leaders in Canada’s steel and aluminum industries. The previous Trump administration imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. Freeland acknowledged that Canada learned valuable lessons from negotiating with Trump during his first term and emphasized the economic benefits that both countries receive from their relationship. She also pointed out the importance of Canada and the U.S. imposing tariffs against Chinese steel, aluminum, and electric vehicles, aligning the two countries as a united front against China.
Freeland believes that by positioning Canada as a reliable trading partner aligned with American interests, it can strengthen its economic and geopolitical relationship with the U.S. The Canadian Vehicle Manufacturers Association president sees an opportunity for Canada to exempt itself from Trump’s proposed tariffs by becoming a preferred source for critical minerals. Freeland met with Canadian steel producers to discuss ways to crack down on circumvention practices that allow exporters to bypass tariffs by sending steel through friendly borders.
Despite the uncertainty of negotiating with Trump in his second term, Freeland emphasized her readiness for the challenge and her strong relationship with key players in the administration. She believes that Trump respects strength and those who defend their national interests, qualities that she will continue to exhibit in negotiations. Canadian ambassador David MacNaughton stressed the importance of Canada aligning with the U.S. on trade policy towards China to avoid potential problems in the relationship.
Overall, Freeland remains optimistic about Canada’s ability to navigate trade negotiations with the U.S. under the incoming Trump administration. By demonstrating strength and alignment with American interests, Canada aims to secure a favorable position in trade discussions and strengthen its economic relationship with its southern neighbor. The lessons learned from previous negotiations and the potential for collaboration on critical minerals present opportunities for Canada to emerge in a better position from future trade negotiations.
