Prime Minister Justin Trudeau has wasted no time preparing for a new Trump administration by resurrecting a cabinet committee to focus on Canada-United States relations.
The Prime Minister’s Office (PMO) said the committee will look at “critical Canada-U.S. issues” as President-elect Donald Trump returns to the White House. The committee, which is made up of Liberal cabinet members, will be chaired by Deputy Prime Minister and Finance Minister Chrystia Freeland, while its vice-chair will be Public Safety Minister Dominic Leblanc.
Freeland also reacted quickly, meeting with leaders from Canada’s steel industry and auto parts manufacturers on Nov. 7. Her itinerary noted both meetings were in response to the U.S. election results. Trump imposed tariffs on Canadian steel and aluminum during his first term as president, and has repeatedly said on the campaign trail he intends to impose broad tariffs on imported goods.
Trudeau had a turbulent relationship with Trump during his last presidency. Since Trump’s most recent electoral victory, Trudeau’s messaging has focused on maintaining the wide-ranging trade ties between the two countries.
Trudeau spoke with Trump by phone on the evening of Nov. 6 to congratulate him on his electoral win. The PMO said they discussed trade between the two countries, including the Canada-United States-Mexico Agreement (CUSMA), as well as their “shared interest in secure and reliable supply chains and addressing unfair trading practices in the global economy.”
The Trump campaign was contacted for comment but didn’t respond by publication time.
The Liberal government had been preparing for a potential Trump presidency for more than a year, with Joly first telling reporters in August 2023 that they had to have a “game plan to be able to manage what could be a very difficult situation.”
Ottawa launched its “Team Canada” approach in early 2024 to prepare for the next person to take office in the White House. Joly said the government would work with the business community, unions, and provinces.
The Canadian government could also be looking at the re-opening of the North American free trade deal. Trump said during an Oct. 10 speech he would formally notify Mexico and Canada of his intent to invoke the six-year renegotiation provisions of CUSMA, which replaced the North American Free Trade Agreement (NAFTA). The deal came into force in 2020 and the renegotiation window will open in 2026.
Trump has also said that if elected, he would be open to imposing broad tariffs on imports into the United States. He floated the idea of imposing 10 to 20 percent tariffs on all imports into the United States, 60 percent on all imports from China, and 100 percent for countries that shun the U.S. dollar.
Several Canadian business groups reacted to Trump’s win by calling for federal and provincial governments to work closely on economic issues. The Canadian Federation of Independent Business said the election results will have “significant implications for Canadian small businesses” and that the country must prepare for a re-negotiation of CUSMA.
The Canadian Chamber of Commerce called for the federal government to continue with a “robust and mutually beneficial economic relationship with the United States,“ saying it must work to resist tariffs and trade barriers that would ”raise prices and hurt consumers in both countries.”
The Canadian Association of Petroleum Producers said there would be opportunities for collaboration between the two countries in providing “affordable energy,“ creating jobs, and driving new investment. Trump has vowed to ”drill baby drill” during his second presidency, referring to increased drilling for petroleum and gas as sources of energy.
