Canada warns Trump's proposed tariffs could spark global trade retaliation, raising costs for all
Canada has issued a warning about Donald Trump's campaign pledge to increase import tariffs, suggesting such a move could lead to global retaliatory measures.
Kirsten Hillman, Canada's ambassador to the US, highlighted the risks during an interview with BNN Bloomberg.
She expressed concern that Trump's proposal to impose a 10 percent duty on international goods—and a staggering 60 percent on Chinese imports—if re-elected, could spark a cycle of reciprocal tariffs from trade partners.
Hillman, who played a role in negotiating the US-Mexico-Canada Agreement (USMCA) during Trump's first term, argued that this agreement should protect Canada from such tariffs.
She warned of the broader implications, stating, “It’s not a one-way street — other countries, if that policy is enacted, will respond. That could potentially raises costs for everybody.”
The ambassador reminded that during Trump's initial presidency, his imposition of tariffs on steel and aluminum had prompted similar actions from other nations.
She recounted the negotiation process of the USMCA, which was aimed at replacing the North American Free Trade Agreement blamed by Trump for US job losses.
Despite threats to terminate regional free trade, the three countries managed to secure a deal with wide-ranging support in the US Congress, aiming for deeper integration in vital sectors like semiconductors post-COVID-19.
Despite the current geopolitical tensions and the push for regional self-sufficiency in sectors like food and energy, Hillman does not foresee a division into rival trade blocs.
She also played down concerns over the scheduled 2026 review of the USMCA, seeing it as a chance to enhance rather than overhaul the agreement.
With the US election approaching, Hillman mentioned that Canada is leveraging its consular network to foster relationships with lawmakers from both major US political parties.
She also noted ongoing communications with some of Trump's advisers since his departure from office, emphasizing the importance of gathering comprehensive insights ahead of the election outcome.
