Behind the Scenes of Canada’s Push to Avoid Donald Trump’s Punishing Tariffs
The year 2018 will always be remembered as a tumultuous time for Canadian-American relations. In January, the newly minted US president, Donald Trump, unceremoniously declared that his predecessor’s long-standing free trade agreements with Canada were "disasters" and a "catastrophe" for the country. This warning shot was just the beginning, as Trump swiftly imposed tariffs of 25% on Canadian aluminum and steel products, sparking widespread outrage and uncertainty in the economic and diplomatic capitals of both countries.
In a desperate bid to avoid the damaging consequences of this trade war, Canada’s political leaders and government officials sprang into action behind the scenes to negotiate a withdrawal of the punishing tariffs. Through a series of tense diplomatic back-and-forth, quiet strategizing, and last-minute maneuvers, the nation’s top players worked tirelessly to find a compromise that would rescue Canada’s once-thriving trade relationship with its largest ally.
At the forefront of Canada’s tariff wars was Foreign Minister Chrystia Freeland. Known for her tenacious wit and unwavering dedication to Canadian interests, Freeland served as the linchpin between Ottawa and Washington, tirelessly shuffling between Capitol Hill, Cabinet meetings, and diplomatic cocktail receptions to keep Canada’s economic sovereignty intact. It was she who, on day one of Trump’s presidency, issued a solemn warning to Ottawa’s bureaucrats, stating, "We are Canada, and we will not stand idly by while our integrity is threatened by reckless rhetoric." This stance remained unwavering throughout the saga, as Canada’s diplomatic teams worked feverishly to secure agreements that would quell the tide of retaliatory tariffs threatening their own markets.
Behind the curtains, the Federal Government, Prime Minister Justin Trudeau, and Chief of Staff Gerry Butts – the master tactician behind key decisions – converged to plot and countermand America’s trade posturing. Meeting with advisors daily, Trudeau crafted a two-fold strategy: countermeasures on steel and aluminum, as well as an intricate diplomatic campaign of shuttle diplomacy across the continent and transatlantic allies to coordinate opposition against American protectionism.
In this fraught atmosphere, Trade Minister François-Philippe Champagne took on an instrumental role as Canada’s leading negotiator on trade agreements with the US and the EU, expertly forging coalitions that would stand unified against the anti-free trade bloc. The negotiations themselves proved fraught, as tense hours spent reviewing tariff lists yielded few tangible advances, forcing participants to rethink long-held positions at the last possible moment. Canadian diplomats demonstrated consummate tactfulness, avoiding all-out conflict even as US proposals repeatedly proved wanting.
Amidst the firestorm of escalating tensions, American lawmakers on the Hill found common ground with cross-party opponents who saw Trump’s tariffs as more harm than ailing industry had anticipated. Fearing electoral fallouts from crippling Canadian exports on both sides, influential Democrats stepped forward, introducing legislation aimed at repealing – or, if necessary, restricting – Trump’s punitive measures.
The tide ultimately turned when Robert Lighthizer, Trump’s top trade counselor, accepted Prime Minister Trudeau’s invitation to conduct high-level dialogue on Canada-United States relationships. Following private talks with Federal Government representatives at the prime minister’s Toronto ranch, a sudden breakthrough led Washington to scale back tariffs to zero, with caveats.
Lessons drawn from this exhausting escapade now govern Canada’s handling of future tariff threats: A resolute insistence on safeguarding sovereignty, swift and flexible mobilization of foreign policy instruments, and unwavering dedication from government leaders proved the recipe for Canada’s protection from Donald Trump’s punishing tariffs.
