Canadian Prime Minister Justin Trudeau recently had a significant meeting with Donald Trump at Mar-a-Lago. This discussion followed Trump’s threat to impose hefty tariffs on Canada and Mexico, causing concern in both countries. Trudeau described the meeting as an “excellent conversation,” though it remains uncertain if Trump’s concerns were fully addressed.

The meeting, arranged quickly, lasted three hours and covered various topics. These included trade, border security, fentanyl, defence, Ukraine, NATO, China, the Middle East, pipelines, and the upcoming G7 meeting in Canada. An anonymous source familiar with the details described it as a “positive wide-ranging dinner.”

Trade Tariffs and Border Security

Trump has proposed a 25% tariff on products from Canada and Mexico if they don’t curb drug and migrant flows across their borders. This proposal is part of his initial executive orders planned for January. Trudeau emphasised that such tariffs would not only harm Canadians but also raise prices for American consumers.

Trudeau’s team included Dominic LeBlanc, Canada’s public safety minister responsible for border security, and Katie Telford, his chief of staff. Meanwhile, Trump’s team featured Howard Lutnick, Doug Burgum, and Mike Waltz, all poised for key roles in his administration.

Responses from Canada and Mexico

Mexican President Claudia Sheinbaum expressed confidence that a tariff war with the US could be avoided after her conversation with Trump. Trudeau also aimed to resolve the tariff issue through dialogue with Trump. He highlighted that Trump’s election promises included reducing grocery costs but imposing tariffs would increase prices on goods like potatoes from Prince Edward Island.

During Trump’s first term, he labelled Trudeau as “weak” and “dishonest.” However, Trudeau was the first G7 leader to visit Trump post-election. The potential tariffs could disrupt the North American trade pact renegotiated during Trump’s first term, which Trudeau considers beneficial for both nations.

Impact on Trade Relations

Canada is a crucial export market for 36 US states. Goods worth nearly 3.6 billion Canadian dollars (USD 2.7 billion) cross the border daily. In response to previous US tariffs on Canadian steel and aluminum in 2018, Canada imposed billions in retaliatory duties.

Trump’s recent tariff threats cited illegal migrant influxes and fentanyl from Canada and Mexico. However, Canadian officials argue that comparing their border situation to Mexico’s is unfair. They are prepared to invest more in border security if needed.

Nelson Wiseman from the University of Toronto believes Trump understands that new tariffs on Canadian products aren’t beneficial for the US but can’t admit it publicly without undermining his statements. His aim is to appear decisive in his actions.

The discussions between Trudeau and Trump highlight ongoing challenges in US-Canada relations. Both leaders are navigating complex issues like trade agreements and border security while balancing domestic interests.