Canadian representatives say they now have a clearer understanding of what U.S. President Donald Trump is pursuing through his use of tariff measures, following a meeting with Trump’s commerce team in Washington, D.C., on March 13.
David Paterson, Ontario’s representative in Washington, says what the Trump administration wants is to “slay” the “massive deficit” that the U.S. government has incurred in its spending by using tariffs as new revenue sources.
“Tariffs are now a global policy of the United States,” said Paterson in an interview on
CBC’s Power & Politics, aired on March 15. “This is a historic change to global trading patterns, and the [U.S. government is] very aware of that.”
The U.S. federal government’s spending has been running
on deficit since its last surplus 2001. In fiscal year 2024, with total spending of US$6.75 trillion and total revenue of US$4.92 trillion, the deficit hit US$1.83 trillion, an increase of US$138 billion from the previous fiscal year, according to the country
’s Treasury Department.
Paterson,
who met U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer last Thursday, said the Americans were “very straightforward” in laying out what they want for their country during the discussion.
“What was made clear to us is that we have to take on the serious challenge with serious measures,” Paterson said. “Tariffs will be part of that, not just as a revenue source from a global application of tariffs, but also as a way, of course, to attract investment into the United States.”
That meeting on March 13 also included Ontario Premier Doug Ford, Canada’s Ambassador to the United States Kirsten Hillman,
along with then-Finance Minister Dominic LeBlanc, who is now
minister of international trade and intergovernmental affairs, and then-Industry Minister François-Philippe Champagne, who is now
finance minister. The four were in Washington to address the U.S. tariffs issues that have recently led to tense trade relations between the two countries.
Paterson said Trump’s team intends to impose tariffs on an “industrial basis”—meaning by sector—across countries worldwide on April 2. Following that, countries that “get along with [the United States] the best, that are allies, that are able to help us grow our economy, will be first in line” for tariff adjustments or mitigations, he added.
“This is the policy. This is the way they’re going forward,” Paterson said. “And I think [the meeting on March 13] gave us a lot of clarity.”
‘Eliminate the Status Quo’
In an interview on CBC’s Rosemary Barton Live aired on March 16, Hillman said the meeting with the American officials was “concrete,” as it offered an opportunity for the Canadian team to raise questions and present their views on how the U.S. tariffs have hurt Canada’s economy.Hillman added that Lutnick and Greer walked them through Trump’s trade agenda and noted that the United States is “deeply focused” on the tariffs it will impose globally on April 2.
Trump has
repeatedly stated that he intends to impose reciprocal tariffs on all nations starting April 2. The president said this plan aims to create “balanced and fair” trade relationships while reducing the U.S. trade deficits with other countries.
A
news release from the U.S. Department of Commerce shortly after the March 13 meeting echoed the president’s sentiments. It said the country’s goal is to “eliminate the current status quo of overwhelming trade deficits and crushing foreign restrictions” while working to “secure America’s border and eliminate fentanyl.”
“During the meeting, Secretary Lutnick and [Trade Representative] Greer highlighted the Trump Administration’s steadfast commitment to pursuing fair trade and Canada’s potential role in those efforts,” the release said.
“Both countries recognized the strength and history of their relationship.”
Speaking in Washington after the meeting, Ford told reporters that the talk with Lutnick and Greer was “extremely productive” and that the temperature between the two nations has lowered.
“We shared a tremendous amount of views back and forth and I’m feeling very positive,” Ford said on March 13. “And I just look forward to reaching out again next week. But this, I can honestly say, was the best meeting I’ve ever had coming down here.”
While he was still in Washington, Champagne
told reporters that the discussion with the American officials was “constructive.”
“We have our disagreements, but as long as you have dialogue, you are making progress,” said the minister.
Tariffs and Counters
The United States
imposed a universal 25 percent tariff on imports of steel and aluminum on March 12, and Ottawa responded with tariffs on $29.8 billion in U.S. goods.
Two days earlier, on March 10, Ontario had said it would slap a 25 percent surtax on electricity exports to three American states. The move triggered Trump to respond the next day, saying he would double the tariffs on Canadian steel and aluminum to 50 percent.
Following a phone call with Lutnick on March 11, Ford announced he would suspend the surcharge on electricity. The premier said at the time that the two agreed to meet in Washington. Trump said the same day he would not go ahead with 50 percent tariffs on steel and aluminum, keeping them at 25 percent.
At a press conference on March 12, LeBlanc said his trip to Washington would focus on lowering the temperature in trade relations and removing the tariffs on steel and aluminum, the 25 percent tariffs on Canadian products earlier announced on March 4, and the incoming reciprocal tariffs on April 2.
“We’re going to do everything we can to get Canada out of these measures,” he said.
Emel Akan, Matthew Horwood, and The Canadian Press contributed to this report.
