US ambassador Pete Hextra said he hopes that tariff transactions between his country and Canada will be achieved soon, but suggested that some tariffs could remain in place after that.
Hoekstra said that US tariffs in Canada will “be “not sure” that US tariffs in Canada will be “fully removed” after asking whether achieving certain benchmarks or meeting certain criteria would lead to such outcomes.
Canada is under three different sets of US tariffs. The first set will be imposed due to concerns about border security and fentanyl trafficking and will also apply to Mexico. Products covered by the US-Mexico-Canada (USMCA) free trade agreement are exempt. Canada is also affected by universal tariffs on steel and aluminum, as well as car and auto parts tariffs. Automotive fares also come with free trade exemptions.
The UK, like many other countries, was hit by “mutual” tariffs announced in April by US President Donald Trump. Unlike Ottawa, London did not impose retaliatory measures on Washington.
The White House said many other countries are also working to attack trade deals with the United States.
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Hoesktra said he hopes Canada and the US can reach an agreement “relatively quickly,” but added that there are “a challenge that is difficult to negotiate and speak.”
Hoekstra repeated Trump’s comments that the USMCA is “transitional,” saying that debate could now arise about what needs to be changed.
International Trade Minister Dominique LeBlanc proposed that negotiations to be held have nothing to do with the USMCA.
“They haven’t shown that to us, but I’m interested in discussing how Canada and the US can tackle economic and security issues,” LeBlanc said.
Hoekstra described Trump’s approach to negotiations as “all” considering non-voluntary trade barriers such as tariffs, opening various markets, and government subsidies.
The US administration has criticised Canada’s supply management system for dairy and poultry products, as well as the digital service tax, which primarily targets US technology giants.
Other issues that are important to the United States include fighting fentanyl and solidified defense, national security and global security, Hoekstra said.
Defense expenditure
Hextra, who held the position of Dutch ambassador for the US ambassador during Trump’s first term, noted the president’s claim that the Netherlands adhered to NATO’s defense spending targets of 2% of GDP.
“It was an important priority for the then president and still an important priority for the president,” he said. The Netherlands surpassed NATO spending guidelines at 2.05% in 2024.
Canada was one of eight members of the military alliance that did not meet last year’s 2% guidelines. Prime Minister Mark Carney pledged during his campaign to reach his target by 2030, two years before his predecessor Justin Trudeau.
Carney met up with Trump at the White House on May 6th. There, the president reiterated his desire for Canada to join the United States, saying it would provide military benefits and other benefits. In his response, the Prime Minister said Ottawa is increasing its investment in security.
“The president can activate international security, activate NATO, and (pull) all our weight with NATO… that will become a part of that,” Carney said.
Carney insisted that Canada would never be sold during the meeting, and Trump replied, “Never say it.”
Trump has spoken at length about making Canada a 51st state along with Kearney, but Hextra told Global News that the Trump administration “moved beyond the 51st state” “at least as far as I’m concerned.”
“The president can raise it, but if that argument arises again, it will be between the president and the prime minister,” he said. He added that the two expressed their views “eloquently” and “strongly” but now it’s time to “move ahead.”
Hoekstra was part of a group of officials who attended a luncheon between leaders after speaking to the media in an oval office.
He said the two showed “high level of respect” and “established personal bonds.” Some of the issues discussed included national security, fentanyl, the Arctic and China, according to Hoekstra. He added that the argument is “positive” and not to be held responsible.
