Alberta Premier Danielle Smith shares concerns about Mexico, echoing Ontario’s premier’s worries. She hopes Canada can secure a “carve-out” from import tariffs promised by president-elect Donald Trump.
Smith mentioned advice from Robert Lighthizer, Trump’s former trade chief, advocating for a “Canada first” approach due to China’s increased investment in Mexico, negatively impacting the manufacturing sectors in the U.S. and Canada.
Ontario Premier Ford criticized Mexico for allowing Chinese products to enter Canadian and American markets through the USMCA agreement. He suggested a bilateral trade deal between Canada and the U.S., separate from Mexico.
Smith expressed concerns about the potential 10% tariff on all imports under the incoming Trump administration, discussing strategies with other premiers and Finance Minister Chrystia Freeland.
She emphasized the importance of a Canada-first approach and securing a carve-out for the country, highlighting the balanced trade relationship with the U.S.
The USMCA agreement is set for review in 2026, with Ford stating that Mexico should match Canadian and American tariffs on Chinese imports or risk exclusion from negotiations.
The Canadian Chamber of Commerce warned that a 10% tariff could significantly impact the economy. Energy experts believe Canadian oil may be exempt from such tariffs.
Freeland acknowledged concerns about Mexico’s economic relationship with China and emphasized the importance of aligning with American counterparts on trade issues.
Smith sees Canada’s reliability as an energy source and potential for pipeline expansion into the U.S. as bargaining chips in negotiations with the Trump administration.
She noted Trump’s focus on China, border security, and NATO defense spending, urging Canada to meet its two percent GDP defense target by 2032 to maintain cross-border trade interests.
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