Natural Resources Minister Jonathan Wilkinson is in the U.S. capital this week in hopes of forging an energy and minerals alliance with the Trump administration, which has just paused its tariffs on Canada.
Wilkinson said the 30-day tariff reprieve is “welcome news” for the Canadian and U.S. economies and that he hopes to increase collaboration between the two countries to make North America “affordable, safe and prosperous.”
“Canada’s vast deposits combined with U.S. processing can fuel both economies, create jobs, and secure the resources driving the next generation of technology and defence systems across North America and beyond,” he said.
During a talk with the Atlantic Council on Feb. 4, Wilkinson mentioned a number of areas in which Canada could cooperate with the United States to undercut China, including jointly investing in a germanium project and in a rare earth minerals processing. He also suggested building a “complete North American nuclear fuel cycle” to reduce reliance on Russia, something he called “critically important” to deploy small modular reactors.
“On energy we can enhance the flow of Canadian crude from Alberta to assist the administration’s goal of energy dominance by working together on projects such as enhancing the capacity of the existing Enbridge Main Line, enabling the export of additional energy from the U.S. to the world,” he said.
Wilkinson’s visit to Washington comes the day after Canada and the United States came to an agreement that put a halt to their trade war for the time being.
U.S. President Donald Trump signed an executive order on Feb. 1 imposing 25 percent tariffs on Canadian goods and 10 percent tariffs on energy. Canada responded on the same day by announcing $155 billion in retaliatory tariffs.
After a second call with Trump on Feb. 3, Prime Minister Justin Trudeau announced Trump had agreed to pause U.S. tariffs for 30 days after Canada promised additional measures to secure the border.
New border measures announced by Trudeau include the appointment of a “fentanyl czar,” the listing of drug cartels as terrorist entities, and the signing of a new intelligence directive on organized crime and fentanyl backed with a $200 million envelope. Additional details about the measures have not been made public.
Trump’s current tariffs are linked to how Canada cracks down on criminal activity affecting the United States, but he has other grievances with Canada including its defence spending.
Canada is not meeting NATO’s defence spending guideline of 2 percent of gross domestic product (GDP) and doesn’t plans to reach the benchmark until 2032. Trump has previously said member countries of the alliance who don’t spend on their own defence shouldn’t be protected.
U.S. Vice President J.D. Vance on Feb. 2 cast doubts on Canada being the United States’ “best friend” in light of its defence spending.
“If Europe retaliates but dramatically boosts its own defense expenditures and capabilities, alleviating the United States’ burden for global security and threatening less overextension of our capabilities, it will have accomplished several goals,” wrote Stephen Miran.