Canada is willing to buy more American products, including a potential fleet of submarines, to address President-elect Donald Trump’s concerns about the U.S.-Canada trade deficit, Ambassador Kirsten Hillman said Monday.
In an interview with The Associated Press, Hillman cautioned that imposing a 25% tariff on Canadian goods would lead to higher prices for Americans. “Adding 25% tariffs to those products will raise the price for Americans almost immediately,” she warned. “And at a time when the cost of living is challenging, when food prices are high, it seems like the wrong direction to go in.”
Hillman dismissed Trump’s suggestion that Canada could become the 51st U.S. state, describing it as part of his negotiating strategy. “He has a negotiating style which involves positioning himself in the best way he can for discussions. I think that is what this is,” she said.
Canada remains a key trading partner for the U.S., purchasing more American goods than any other country. “We are happy to source what we can from the United States,” Hillman said, highlighting a plan to replace Canada’s entire submarine fleet and procure 88 F-35 fighter jets, with 70% of military purchases already sourced from the U.S.
Alberta Premier Danielle Smith also supported efforts to narrow the trade gap by increasing Canadian purchases of American goods. Smith recently met with Trump at his Mar-a-Lago estate to discuss trade issues.
Hillman noted that the U.S. had a $75 billion trade deficit with Canada last year, largely driven by energy exports. She emphasized the interdependence of the two economies, with trade supporting over 8 million U.S. jobs and Canada being the top customer for 36 U.S. states.
The ambassador reiterated Canada’s readiness to retaliate if tariffs are imposed, warning that “Canada will respond. Therefore, your number one customer will make American products more expensive, and Canadians will probably look for alternatives to those products.”
Hillman urged Trump not to undermine the trade achievements of his first term, particularly the United States-Mexico-Canada Agreement (USMCA). “We are 99% tariff free with the United States… That was negotiated by President Trump. He achieved that success, so why would we backtrack from this success that he achieved in his last administration?” she asked.
Hillman stressed that Canada seeks cooperation rather than conflict, but would not hesitate to act if measures unfairly impact Canadians.
