New U.S. ambassador says Canada could get ‘lowest tariffs of any country'

CTV News

22-05-2025

U.S. Ambassador to Canada Pete Hoekstra says Canada and the U.S. 'would have to have some kind of a discussion on NORAD' if Canada doesn't buy F35s.
The new U.S. ambassador to Canada says while U.S. President Donald Trump is unlikely to ever remove his slate of tariffs entirely, he's confident Canada can reach a deal to secure the lowest levies possible.
'The president has made it clear that there will probably be a tariff on every country that we do business with,' Pete Hoekstra said in an interview on CTV's Power Play with Vassy Kapelos on Wednesday. 'He's campaigned on that and has said that.'
Hoekstra, who was sworn in as ambassador last month, said Canada should highlight areas in which the two countries can work together, such as critical minerals, automotives, energy, defence, and fentanyl.
'(So) that we can come together with a deal that gives Canada the lowest tariffs of any country that America negotiates an agreement with,' Hoekstra said.
When pressed by Kapelos on the future of U.S. tariffs on Canada, Hoekstra reiterated Canada could get 'the lowest.'
While Hoekstra acknowledged there have been 'bounces back and forth' on the American tariff plan and Canada's countermeasures, he said he's 'absolutely' confident the two countries can come up with a trade framework by July.
'We want to get to as free, fair and equitable as Canada allows us to go,' Hoekstra said, adding a free trade agreement doesn't mean zero tariffs, but rather an agreed-upon rate for certain products.
Speaking to reporters in Ottawa on Wednesday, Prime Minister Mark Carney said his government is 'fighting to get the best deal for Canada,' adding he 'will take all the time necessary' to reach an agreement.
Last November, prior to his inauguration, Trump threatened to impose a 25 per cent tariff on all Canadian imports, levies he claimed were tied to border security and the fentanyl crisis.
In response, Canada slapped a 25 per cent tariff on $30 billion of U.S. goods, including items like orange juice, wine and spirits. The federal government has said those retaliatory measures will remain in place until the U.S. lifts all of its tariffs on Canada, despite the U.S. pausing its initial across-the-board levy threat in February.
Trump has imposed a series of other tariffs against Canadian imports in recent months, with exceptions for products that are compliant with the Canada-U.S.-Mexico free trade agreement (CUSMA).
Levies on steel and aluminum took effect on March 12, and the 25 per cent tariffs on all non-CUSMA-compliant Canadian imports and 10 per cent on non-CUSMA-compliant Canadian energy, which are related to the border and the fentanyl crisis, are also in place.
Also in effect are Trump's 25 per cent tariffs on all foreign-made automobiles, though there are exemptions for some CUSMA-compliant products.
Carney then announced Canada would respond with 25 per cent tariffs on all non-CUSMA-compliant vehicles imported from the U.S., and all non-Canadian content of CUSMA-compliant vehicles from the United States.
The Canadian government announced a series of relief measures for some automakers last month, to help weather the ongoing trade dispute.
And, early last month, Trump laid out his long-promised reciprocal-tariff regime, though Canada escaped the taxes thanks to CUSMA. That deal is currently set for a review in 2026.
When pressed on whether Canada can trust the U.S. to uphold a new agreement when it has contravened the existing one on several occasions, Hoekstra said one should be 'very careful with the word 'trust.'' The ambassador pointed to Canada's failed commitment to reach its agreed-upon NATO target of spending two per cent of its GDP on defence as an example of a broken promise that has not swayed U.S. trust in the bilateral relationship.
'Am I disappointed that (Canada is) well short of their commitment on NATO? The answer is yes,' Hoekstra said. 'They committed to that, just like the U.S., and they haven't, but does that mean that I go home and or I tell my colleagues in Washington we can't trust the Canadians? No, that has not crossed my mind.'
When pressed again on the issue, in light of Trump's threats to Canada's sovereignty, Hoekstra insisted Canada can trust the United States, and he's confident the president and prime minister can hash out a deal.
'I believe (Canada) can trust us. I trust Canada,' Hoekstra added.
Hoekstra's interview comes amid a trip to Washington for Canada-U.S. Trade Minister Dominic LeBlanc to meet with U.S. Commerce Secretary Howard Lutnick, a government source familiar with the matter confirmed to CTV News.
Canada not purchasing F-35s could 'threaten Norad'
During his interview, Hoekstra also signalled Norad — the bilateral defence alliance between Canada and the U.S. — could be in jeopardy if Canada reneges on its plan to purchase several American-made F-35 fighter jets.
In March — amid tensions with the U.S. — former defence minister Bill Blair said Canada was looking at potential alternatives to its jet purchase that was signed back in 2023 after years of delays.
'One of the criteria for Norad is interchangeability and interoperability,' Hoekstra said. 'So that would mean that we're flying the same kinds of planes, we're using the parts, and it's all interchangeable, and it's one system.'
'If Canadians are flying one airplane, we're flying another airplane, it's no longer interchangeable,' Hoekstra added. 'And so, that might even threaten Norad without talking about new alliances that promise even more security and safety to our people.'
While Hoekstra called Norad 'one of the most successful military alliances in the world,' he also said Canada's potential decision to purchase a fleet of planes that's different from the American's could mean 'some kind of a discussion on Norad.'
'Canada hasn't made a decision on the F-35, they're just saying 'we're going to go back and re-evaluate it,'' Hoekstra said. 'And I think at that point in time it'll be important for the U.S. to point out, 'wait a minute, this is a fundamental basis for Norad.' And no, those discussions are not going on.'
The ambassador added there is a series of important dates coming up that might give some indication of the prime minister's intentions vis-à-vis the F-35, namely the new session of Parliament starting Monday, followed by the Speech from the Throne on Tuesday, and a meeting of G7 leaders next month in Canada.
When pressed on his comments and whether he believes Norad as an alliance is at risk, Hoekstra insisted he and the U.S. administration 'absolutely' believe in the partnership.
Asked by CTV News at a press conference on Wednesday about Hoekstra's F-35 comments, Carney said 'the review of the F-35 contract is ongoing.'
'There's many factors that come into that interoperability so that would relate to the Norad element there. Value for money, Canadian industrial impacts. All of those are factors that are under consideration,' Carney added, while acknowledging he had not yet seen Hoekstra's remarks at the time.
You can watch Hoekstra's full interview on CTV Power Play with Vassy Kapelos in the video player at the top of this article.
With files from CTV News Stephanie Ha and Brennan MacDonald