Canada scrambles to strike a deal as Ontario trade envoy races to stop Trump tariffs before G7 summit
Ontario
's trade representative in Washington, David Paterson, remains optimistic about easing the escalating trade tensions with the United States as Canada braces for the G7 Leaders' Summit in Alberta later this month.
Despite President
Donald Trump
's recent move to double tariffs on Canadian steel and aluminum imports to 50 percent, Paterson believes a resolution is within reach.
'You have a choice of either engaging and that's what we do in Washington and trying to make progress, or sit back and wait for some kind of perfect deal, and I think that could take a long time,' Paterson said in an interview with Global News' The West Block.
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He emphasized the importance of proactive engagement over waiting for ideal conditions.
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Canada's economy flexes while everyone freaks about tariffs, so no rate cut for you for now!
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Paterson highlighted that discussions with Republican lawmakers have been constructive. 'We've probably talked to 100 Republican senators and members over the last year. I certainly have not had a bad meeting with any of them. They love Canada,' he noted. However, he acknowledged that these lawmakers are currently supporting the president's agenda.
Impact of recent tariff hikes
The recent
tariff
hikes have had a profound impact on Canada's economy, particularly in Ontario, where the steel and aluminum industries are significant employers. Catherine Cobden, president of the Canadian Steel Producers Association, warned that the increased tariffs could effectively shut Canada out of the US market, threatening over 120,000 jobs.
In response to the US tariffs, Canada has announced plans to impose equivalent tariffs on US goods worth billions. Prime Minister Mark Carney has condemned the tariffs as a direct attack on Canadian industries and has vowed retaliation.
Also read:
Quebec takes bold step to break down interprovincial trade barriers
Canada remains hopeful
Despite these challenges, Paterson remains hopeful. He pointed to the United Kingdom's recent framework trade agreement with the US as an example of what Canada could achieve. 'Suddenly, we find ourselves in a situation where a vehicle from the United Kingdom now has a lower tariff coming into the United States than a Chevrolet made in Ontario. That doesn't make any sense,' he said.
Paterson also emphasized the importance of educating the Trump administration on Canada's role as a key trading partner. 'You may hear the president say, 'I don't need your cars, I don't need your natural resources.' The truth is they do, and we know they do, and they know they do,' he asserted.
With the G7 Summit approaching, Paterson is optimistic that progress can be made. 'We need to make more progress. We, as the signers of the CUSMA agreement, surely should have the best access to the United States market than everyone,' he concluded.
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