OTTAWA — As Canada looks for ways to see U.S. tariffs lifted, the country’s ambassador to Canada suggested the recent trade announcement with the United Kingdom could be a “template.”
“I think this will kind of be a template for how we go around the world,” U.S. Ambassador to Canada Pete Hoekstra told National Post.
Hoekstra made his comments as Trump was announcing on Thursday he had reached a deal with U.K. Prime Minister Keir Starmer.
The announcement, which has not yet been finalized into an agreement and with more
, would see the U.S. slash the rate of tariffs applied to its automobiles and zero them out on steel and aluminum products, in exchange for more U.K. market access for products such as American beef.
Trump teased that he would soon be announcing a deal — the first he has reached since unleashing tariffs on countries around the world — while Prime Minister Mark Carney was seated next to him in the Oval Office during their first official meeting earlier this week.
Canadian political and business leaders have celebrated the visit as a success, saying Carney hit reset on what had become a strained relationship between the president and his predecessor, former prime minister Justin Trudeau.
During the meeting, the president made it clear there was nothing Carney could say that would convince him to lift tariffs on Canada. Carney also agreed, saying “this is a bigger discussion.”
Citing the president’s comments, Hoekstra suggested Trump is interested in a different type of deal.
“Is there an agreement that can be had that increases prosperity, safety and security for both countries— absolutely.”
Besides tariffs and trade, Carney travelled to Washington to talk security.
While details of the U.S.’s deal with the U.K. remain unknown, Hoekstra said it covers the same issues Canada is dealing with and checks the same boxes.
In terms of next steps, the ambassador says the U.S. and Canada need to keep talking, as Carney and Trump showed this week.
“They showed each other a tremendous amount of respect, and most importantly, they listened to each other,” said Hoekstra, who was among officials who attended their meetings.
“The president clearly listened to what the prime minister had to say, and the prime minister clearly listened to what the president had to say. They got a feel for who each one was. They created as much as you can in two hours, the beginning of a relationship that I think can be positive, that will go after tariffs,” he says.
Trump and Carney also discussed the issue of fentanyl, as well as military and security commitments, he added.
“There’s some work to do, but it’s not like the there’s this huge chasm that we have to overcome. I think we can get there relatively quickly, but the president’s very busy right now.”
Canada remains a priority, the ambassador said, and pointed to the fact the meeting took place within a matter of days and not weeks or months after Carney’s election. Senior members of the Trump administration were in attendance, he said, including Vice-President JD Vance, Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio as well as Jamieson Greer, his trade representative, and Susie Wiles, Trump’s chief of staff.
“The president had everybody in the room that needed to be there,” Hoekstra said. “I would look at that and say, ‘Wow, it’s clear the president sees Canada as a priority’.”
One issue that Hoekstra said he raised with the president’s team which he sees as being a part of negotiations would be on Canada’s digital services tax, with first payments from digital giants due next month.
While the Liberals introduced the three per cent tax to ensure tech giants pay tax on revenue earned from Canadian users, the ambassador called it a “significant tax” which “is targeted specifically at American companies.”
Former U.S. President Joe Biden’s administration also took issue with the tax. Despite Trump’s stated concerns about the digital services tax, it does not appear the deal struck with the U.K. touches its own version of the policy.
When it comes to the free trade agreement between the U.S., Canada and Mexico, which is due for review next year, Hoekstra says the president is evaluating different “concepts” that include having a three-way deal or two-way deal between Mexico and Canada, saying no decision has yet been made.
“Is it still USMCA? Is it USA-Canada?” the ambassador said. “These are the things that will be talked about in the coming days and weeks.”
Trump and Carney are next set to meet when the president attends the G7 in Kananaskis next month.
— With additional reporting from The Associated Press
National Post
staylor@postmedia.com
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