Trump Trade Rep Says US, Canadian Economies ‘Don’t Fit’ Well as Ottawa Pursues ‘Globalization’
A top trade official in the Trump administration said the U.S. and Canadian economies are not entirely compatible, as the two countries pursue different trade strategies.
U.S. Trade Representative Jamieson Greer made the comments during testimony before the U.S. House of Representatives Ways and Means Committee on April 22.
While discussing the topic of Mexico taking steps to protect its market from certain goods coming from countries like China and Vietnam, Greer was asked in committee whether Canada is taking similar steps.
Canada has done a “little bit” on steel, Greer said, while adding that Ottawa aims to sign more trade agreements with other countries.
“They’re doubling down on globalization when we’re trying to correct for the problems of globalization,” Greer said. “So those are two models that don’t fit together very well.”
Canada implemented a 25 percent surtax on certain steel derivative goods in late 2025, and a similar surtax on Chinese steel in late 2024.
On pursuing new trade deals, the Liberal government has set a goal to double non-U.S. exports in the next decade in response to increased protectionism from the United States. The Trump administration imposes universal tariffs on certain sectors deemed strategic, such as metals and autos, which are deeply integrated across North American borders.
Greer’s criticism of Canada’s trade strategy comes amid a flurry of such messaging from U.S. officials, as activity between Canada, the United States, and Mexico ramps up ahead of the upcoming review of their free trade deal.
Greer has been striking a different tone on Mexico. He told U.S. representatives that Mexico “understands that it needs to be better aligned with the United States on trade policy.”
Greer was in Mexico City on April 20 for direct talks with Mexican President Claudia Sheinbaum. A readout from Greer’s office said the two sides agreed to work on resolving outstanding bilateral trade irritants and strengthening the “rules of origin” for key industrial goods.
The United States is seeking to bolster these rules in the Canada-United States-Mexico Agreement (CUSMA) to ensure that goods being traded tariff-free are mostly made of materials coming from members of the trade bloc.
Greer said he’s in regular contact with Canadian officials and these issues have been raised. “If the Canadians don’t want to have the rule of origin, then we'll have to have some other border control to make sure that we aren’t disadvantaged,” he said.
During Greer’s meeting in Mexico, the two sides agreed to hold a first round of official bilateral talks on the CUSMA review in late May.
Formal talks between the United States and Mexico started in mid-March, with Greer saying at the time that Mexico was ahead of Canada in negotiations. No announcement has been made for similar discussions between Canada and the United States.
The Epoch Times reached out to the office of Canada U.S.-Trade Minister Dominic LeBlanc for comment but didn’t immediately hear back. LeBlanc said in late March he expects formal talks with the United States to begin “in due course.”
Formal talks were cancelled by U.S. President Donald Trump in late October after the Ontario government ran an anti-tariff TV ad campaign in the United States.
Concessions Sought
Amid these developments, Prime Minister Mark Carney said on April 22 Canada would not make any concessions to facilitate trade talks.
Carney’s comment to reporters came after government sources leaked to media that the U.S. administration wants concessions before engaging in trade talks. Canada removed counter-tariffs and its Digital Services Tax last year in a bid to facilitate talks.
“It’s not a case of the United States dictating the terms,” Carney said. “We have a negotiation, we can come to a mutually successful outcome.”
The PM said Canada has been working through issues with the United States through high-level contacts to address trade irritants on both sides. “We’ve made some counter proposals, which they’re aware of and the time will come to really roll up our sleeves,” he said.
The leaks in the press and Carney’s update on trade negotiations came shortly after the PM released a video address on April 19 in which he said that close ties to the United States have become “weaknesses” that need to corrected in part through trade diversification.
Conservative Leader Pierre Poilievre reacted shortly after by saying Carney was elected on the promise of securing a deal with the United States yet there’s been no breakthrough after a year, while Mexico is having formal talks.
“Has he waved the white flag on getting rid of the tariffs on aluminum, steel, autos and lumber, or is he still fighting that fight? Does anybody know what Mark Carney’s plan is?” Carney said on April 21.
Canada’s chief trade negotiator with the United States, former Clerk of the Privy Council Janice Charette, said on April 21 it’s unlikely Ottawa and Washington will resolve their disagreements before the CUSMA review date of July 1. Charette said there’s a lot of focus on that date, but she called it a “checkpoint” rather than a “cliff.”
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