Washington - Agencies

In a last diplomatic effort to avoid a trade escalation with the United States, a high-level Canadian ministerial delegation headed to Washington for talks with senior American officials, in an attempt to convince President Donald Trump's administration to backtrack on its decision to impose new tariffs on certain Canadian imports.

Intensive diplomatic efforts in the American capital

The Canadian delegation includes Foreign Minister Mélanie Joly, Public Safety Minister David McGuinty, and Immigration Minister Marc Miller, who held meetings with U.S. Secretary of State Marco Rubio and prominent members of the U.S. Congress, as well as officials in the American administration. The discussions focused on the potential economic implications of these tariffs for both countries, particularly in the steel, aluminum, and automotive sectors.

Canadian warning of negative economic repercussions

Canadian officials warned that imposing tariffs would not only harm Canada but would also affect American supply chains that heavily rely on Canadian supplies. Foreign Minister Mélanie Joly stated that this move could jeopardize the North American Free Trade Agreement (USMCA), emphasizing that Canada seeks to avoid any escalation that could impact the economies of both Canada and the United States.

Joly added in press statements:

“We believe that fair and open trade benefits both countries. Imposing tariffs on Canadian products will only increase costs for American businesses and consumers.”

Potential Canadian response if tariffs are imposed

For his part, Public Safety Minister David McGuinty confirmed that Canada would not hesitate to take retaliatory measures if the United States insists on imposing tariffs, noting that the Canadian government is considering options for a counter-response that includes imposing tariffs on American products, similar to what occurred in 2018 when Washington imposed similar restrictions.

In this context, Immigration Minister Marc Miller emphasized that these measures could have a direct impact on workers and migrants in the affected sectors, warning that any trade escalation would lead to economic disruptions that could affect jobs in both countries.

Will Canada succeed in convincing the Trump administration?

So far, there are no clear indications that the Trump administration will retract its decision, while negotiations between the two sides continue ahead of the scheduled date for the tariffs to take effect on February 1, 2025.

If a diplomatic settlement is not reached, the trade war between the two countries may become a reality, potentially leading to rising prices and increased costs for businesses and consumers in both the United States and Canada.