Canadian Ministers travel to Washington to negotiate with U.S. Officials to avert damaging tariffs, proposing a new energy and resource alliance.
A month-long reprieve from Donald Trump 's tariff threat has provided little solace to Canadian authorities as key cabinet ministers journeyed to Washington, D.C. hoping to permanently avert the potentially devastating duties. \Energy and Natural Resources Minister Jonathan Wilkinson emphasized the possibility of fruitful discussions to steer the dialogue away from tariffs. Wilkinson is championing the establishment of a Canada -U.S. energy and resource alliance, aligning with U.S.
President Donald Trump's ambition of achieving American energy dominance. He aims to engage with newly appointed Interior Secretary Doug Burgum, formerly the governor of North Dakota and now entrusted with Trump's energy agenda, along with other prominent Republicans in Washington this week. \The temporary suspension of tariffs has averted, at least until March 4, a continental trade war that economists on both sides of the border warned would result in price hikes. Industry Minister François-Philippe Champagne and Defence Minister Bill Blair also traveled to the U.S. capital on Tuesday. Champagne underscored the enduring strength of the Canada-U.S. relationship, stating its significance warrants every effort to safeguard it. Wilkinson expressed optimism that the tariff threat is a transient setback preceding a swift return to normalcy in bilateral relations. He cautioned, however, about the growing perception of Canada's reliance on U.S. trade as a potential vulnerability. Wilkinson asserted that if tariff threats persist, Canadians will need to explore building the infrastructure necessary for exporting elsewhere. \The pause on damaging duties offered little comfort to many within Canada's labor and business communities, who contend that the lingering threat stifles investment and breeds market uncertainty. The Business Council of Canada stated that despite the delay in tariffs, considerable uncertainty remains. President and CEO Goldy Hyder emphasized the urgent need for Canada to take decisive action to enhance its long-term economic prospects. On Saturday, Trump enacted an order to impose 25 percent tariffs on imports from Mexico and Canada, with a lower 10 percent tariff on Canadian energy. The president justified the import taxes as a response to what he deemed the illicit flow of people and fentanyl across the border. Trump postponed the Mexican tariffs for nearly a month following a call with Mexican President Claudia Sheinbaum around midday on Monday. Trump also conversed with Prime Minister Justin Trudeau on Monday morning. Following a second call in the afternoon, Trudeau announced the postponement of the tariffs on Canada via social media, outlining his government's $1.3 billion plan to address the president's stated concerns about border security. The Trudeau government unveiled most of this plan in December. Trudeau also stated that nearly 10,000 front-line personnel are and will be protecting Canada's border and announced $200 million in new initiatives to combat fentanyl trafficking, including the appointment of a new 'fentanyl czar.' In a social media post, Trump indicated that the tariffs would be suspended for 30 days to assess if the two countries could reach a 'final economic deal.' Experts have suggested that Trump's tariffs are a negotiating tactic designed to pressure Canada and Mexico ahead of a mandatory review of the Canada-U.S.-Mexico Agreement (CUSMA). This trilateral pact was negotiated to replace the North American Free Trade Agreement (NAFTA) during Trump's first administration. Wilkinson contends that Canada's capacity to bolster Trump's energy agenda could divert the conversation from tariffs back to bilateral cooperation through the trade pact. However, he emphasized that any discussions regarding collaboration must be accompanied by an assurance that tariffs won't be reimposed. 'At the end of the day, we need to actually have a pathway that allows us to deepen the collaboration, if we agree that that's a good thing, without thinking six months from now we are back into the same conversation that we were in the last few days,' he stated during a fireside chat at the Atlantic Council’s Global Energy Center in Washington on Tuesday. Quebec Premier François Legault recently lamented that the most frustrating aspect of dealing with Trump is the ever-present threat hanging over their heads. He believes the events of the past few days underscore the importance of diversifying markets and mitigating Canada's dependence on American exports
DONALD TRUMP CANADA TARIFFS ENERGY ALLIANCE U.S. - CANADA RELATIONS MEXICO CUSMA
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