Two Canadian Cabinet ministers convened with President-elect Donald Trump’s nominee for commerce secretary at Mar-a-Lago on Friday, as Canada works to prevent the imposition of sweeping tariffs following Trump’s inauguration.
Finance Minister Dominic LeBlanc and Foreign Minister Mélanie Joly held discussions with Howard Lutnick, Trump’s nominee for commerce secretary, and North Dakota Governor Doug Burgum, tapped to lead the Interior Department.
The meeting came in the wake of Trump’s threats to impose 25 per cent tariffs on all Canadian products unless Canada addresses what he alleges to be significant flows of migrants and fentanyl into the United States. These claims have been widely disputed, given the comparatively minimal levels of migration and drug trafficking across the US-Canada border relative to the southern border with Mexico.
Productive talks on border security
Jean-Sébastien Comeau, spokesperson for LeBlanc, characterised the meeting as “positive and productive.” He noted that the ministers outlined Canada’s billion-dollar plan to enhance border security and combat the harm caused by fentanyl, reiterating a shared commitment to safeguard lives in both nations.
“Minister LeBlanc and Minister Joly had a positive, productive meeting at Mar-a-Lago with Howard Lutnick and Doug Burgum, as a follow-up to the dinner between the Prime Minister and President Trump last month,” Comeau stated.
Both Lutnick and Burgum agreed to relay the details of Canada’s security initiatives to Trump, though the Trump transition team has yet to respond to requests for comment.
Further discussions are anticipated in the coming weeks, with Joly scheduled to dine with US Senator Lindsey Graham to continue building bridges with key US policymakers.
Cross-border issues
Trump’s focus on border security has drawn attention to disparities between the northern and southern US borders. US customs data reveals stark contrasts: during the last fiscal year, 43 pounds of fentanyl were seized at the Canadian border, compared to a staggering 21,100 pounds at the Mexican border.
Similarly, the US Border Patrol reported 1.53 million encounters with migrants at the southwest border with Mexico between October 2023 and September 2024, compared to 23,721 encounters at the Canadian border.
Most of the fentanyl entering the US is manufactured by Mexican drug cartels using precursor chemicals smuggled from Asia, underscoring the negligible role Canada plays in this crisis.
Trade tensions
Trump has also criticised the US trade relationship with Canada, erroneously labelling it a subsidy. Canada’s ambassador to Washington, Kirsten Hillman, clarified that the US had a $75 billion trade deficit with Canada last year, but highlighted that much of Canada’s exports to the US are energy-related.
“About a third of what Canada sells into the US are energy exports,” Hillman explained. “There is a deficit when oil prices are high.”
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Canada remains a vital energy supplier to the US, providing 60 per cent of US crude oil imports and 85 per cent of electricity imports. Alberta alone delivers 4.3 million barrels of oil per day to the US, which consumes approximately 20 million barrels daily.
The economic relationship extends far beyond energy. Nearly $3.6 billion Canadian dollars ($2.7 billion USD) worth of goods and services cross the US-Canada border each day, and Canada is the top export destination for 36 US states.
Trudeau’s warning
Prime Minister Justin Trudeau has warned Trump that imposing sweeping tariffs on Canadian products would harm Americans as well. “Americans benefit enormously from this trade relationship,” Trudeau reportedly told Trump, urging him to consider the broader implications of restrictive trade policies.
Social media antics
Trump’s recent social media comments about Trudeau have raised eyebrows, with the president-elect mockingly referring to the Canadian Prime Minister as the “Governor of the 51st state.” While likely intended as a jibe, such remarks risk straining an already delicate bilateral relationship.
Path forward
As Trump prepares to assume office, Canadian officials remain committed to safeguarding the critical trade and diplomatic ties between the two nations. The productive dialogue at Mar-a-Lago offers hope that collaboration can prevail, even as tensions surrounding tariffs, migration, and drug trafficking loom large.
The coming weeks will be pivotal in determining whether Canada’s proactive measures will successfully stave off the economic and political repercussions of Trump’s proposed policies.
