Ontario’s trade minister says the provincial government plans to continue its ‘charm offensive’ with American lawmakers
Editor’s note: This article originally appeared on The Trillium, a Village Media website devoted exclusively to covering provincial politics at Queen’s Park.
A day after Americans voted to elect Donald Trump as president for a second time, Canadian politicians said they’re prepared to deal with his potentially protectionist administration.
Finance Minister Chrystia Freeland told Hill reporters yesterday that a second Trump presidency is something the feds have been preparing for, helped by the fact the Liberals have an “enduring relationship” with his team from the first term.
That includes Trump’s ex-U.S. trade representative Robert Lighthizer, who is reportedly set to be given another senior role in his inner circle.
“I did speak with ambassador Lighthizer a few times (on Tuesday) and have stayed in touch with him,” Freeland said, revealing that the pair also spoke over the summer about the role of China — where there is “strong” agreement.
The feds rolled out tariffs targeting electric vehicles from China last month, following in the footsteps of the U.S.
To reporters at Ontario’s legislature on Wednesday, Premier Doug Ford said he’d spoken late the night before with Freeland about the U.S. presidential election and that it’ll take “a strong Team Canada, Team Ontario approach” to work with Trump in his second term.
“I’m very confident we’ll have a very rewarding relationship with the new administration,” Ford said.
Asked what he believes Trump’s second presidency will mean for Ontario, Ford said, “We dealt with him for a couple of years when he was in office (and) he knows that we’re a very important trading partner.”
“(Trump) knows that we’re the … No. 1 trading partner of 17 states and number two to 11 other states,” the premier added. “I believe in ‘Buy Can-Am,’ not ‘Buy Canada,’ not ‘Buy America,’ but ‘Buy Can-Am’ — we’re stronger together.”
The U.S. is Canada’s main trading partner. Last year, more than three-quarters of Canada’s exports were to the U.S., which over half of all imports were from too — which Ontario’s share of was significant.
In his first presidential term, Trump prompted renegotiations of the trade agreement between the United States, Canada, and Mexico. The countries ultimately settled the Canada-U.S.-Mexico Agreement (CUSMA), to replace the North American Free Trade Agreement (NAFTA). Changes in the new agreement included increased thresholds for auto manufacturers to meet in terms of the parts of their vehicles produced in North America.
Auto manufacturing is important to Ontario’s economy. It is also significantly integrated with the same sector in the U.S. and Mexico, as major vehicle makers commonly produce parts of their cars in two, or all three, of the countries in the continent.
In the lead-up to Tuesday’s election, Trump promised to put tariffs on all imports into the U.S., along with steeper ones on Mexican-made cars and other products he believes undercut American manufacturing. During his first presidential term, Trump imposed tariffs on select imports from Canada, including steel and aluminum.
Over the last few years, the governments of Ontario and Canada have, combined, promised more than $40 billion to major automakers to support their operations in the province, including in large part to subsidize new plants that make electric vehicles, batteries, or EV parts. Governments in Canada were pressured to up their offer to multiple automakers to compete with U.S. incentives created under President Joe Biden’s administration.
On Wednesday, Ford expressed that he’s unworried about the potential of Trump-driven policies — including tariffs — harming Ontario’s auto-manufacturing sector and wider economy. “The market will dictate. … We have a tremendous amount of investments in the EV sector,” he said. “But we (also) have the critical minerals that the U.S. needs — the rest of the world needs. Not only for EVs but for the U.S. military as well.”
“So we’re going to continue focusing on what is best for Ontario. That is my No. 1 promise, is making sure we protect Ontario, and protect Canada as a whole,” Ford added.
Vic Fedeli, Ontario’s economic development, job creation and trade minister, plans to visit Washington, D.C. next month, and then again in January, where he said he’ll continue “a charm offensive to remind (American lawmakers) that we need each other in order for both economies to grow.”
Meanwhile, federal NDP Leader Jagmeet Singh urged Ottawa to “fight back” against tariff plans, while CPC Leader Pierre Poilievre griped that the U.S. has “already taken” away millions in investments from Canada.
Ontario Official Opposition and NDP Leader Marit Stiles, meanwhile, said on Wednesday that the province “should be very concerned” about the incoming U.S. administration’s potential to disrupt Canada’s EV sector “because these are important union jobs — good jobs — (and) great opportunities for Ontario.”
Liberal MPP and parliamentary leader John Fraser said Ontario needs to maintain its “strong trading relationship with our neighbour south of the border” to support the province’s economy and, in turn, its health-care and education systems.
Green Party Leader Mike Schreiner said he’s “deeply concerned” about the potential for U.S. tariffs and “what it means for Ontario companies and what it means for the global economy.”
“I think we’re going to need a Team Ontario — Team Canada — approach, and defend our interests, especially when it comes to trade,” Schreiner said.
— With files from Jack Hauen