Canada well-positioned to navigate trade war and leadership transition, says Malpeque MP
Heath MacDonald says many Americans concerned about economic impact of trade war
As Canada faces challenges on the trade front, Malpeque MP Heath MacDonald says the country is in a solid position to handle them, especially with Mark Carney about to take over as prime minister.
The newly elected Liberal leader won a landslide victory in Sunday's leadership vote. He met with departing Prime Minister Justin Trudeau on Monday to discuss key issues, including Canada-U.S. relations and President Donald Trump's tariffs on Canadian goods.
MacDonald said Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly have done "a tremendous job" in handling the trade war launched by the U.S. president, and now Carney will play an advisory role in the team.
"We're in a pretty good position right now, with his diplomatic and economic value that he brings to the table. He's known around the world," MacDonald told CBC's Island Morning.
"We were told yesterday by Dominic LeBlanc that there's people right in the White House that know Mark Carney. So it's a value that I think could play into our hands. So I think we're looking forward to the next few weeks."
Double trade war
Last week, Trump paused the implementation of a 25 per cent tariff on Canadian exports that comply with the Canada-U.S.-Mexico Agreement until April 2.
Additional tariffs on Canadian steel and aluminum were set to take effect on Wednesday, but there was confusion late Tuesday about whether that would happen.
Earlier Tuesday, the U.S. president has threatened trouble for Canada's auto sector, which received a temporary reprieve with last week's pause, and doubled down on his insistence that his northern ally should become the 51st state.
In a show of goodwill following Trump's pause on the Canada-U.S.-Mexico Agreement tariffs, Canada agreed to delay its second round of retaliatory tariffs worth $125 billion until April 2. However, the federal government will not lift the tariffs it levied on $30 billion worth of American goods after Trump launched this trade war.
"The $30 billion that we put on, the monies that are coming back through those tariffs are set aside. As Mr. Carney said yesterday, basically they're going back to the workers of those industries or sectors that are hit the hardest," MacDonald said.
There's a lot to do, a lot going on.— Malpeque MP Heath MacDonald
Meanwhile, China has announced new tariffs on Canadian agricultural and food products, including seafood, retaliating against levies Ottawa introduced in October on Chinese-made electric vehicles, steel and aluminum products.
The move adds another layer to the ongoing trade tensions.
"There's a lot to do, a lot going on," the Malpeque MP said. "I think people are looking towards Mark Carney as someone that can lead, you know, this geopolitical situation that we find ourselves in and be of value to Canada."
Upcoming election
MacDonald said he attended a caucus meeting on Monday where Carney addressed MPs as the transition of power began.
"It'll be the next couple days before we can even decide on how quickly the election can be called," he said.
When the election comes, MacDonald said he plans to seek re-election as the MP for Malpeque.
MacDonald, who previously served in provincial politics and was once considered a possible leadership candidate for the provincial Liberals before seeking federal office in 2021, said he often gets asked whether he is interested in the provincial Liberal leadership, given that the party currently has an interim leader.
"Right now, with everything that's going on in the country and around the world, I'm going to focus on the federal campaign," he said.
Raising P.E.I. concerns in Washington
MacDonald recently returned from an official trip to Washington, D.C., where he and other MPs advocated for Atlantic Canada's interests with American politicians and business leaders.
He said the trip gave him insight into growing concerns among Americans about the economic impact of the trade war.
"We are starting to see a little bit of an undercurrent in the U.S.... relative to the general public, and they're starting to see and say, 'Why are we doing this? Why are we fighting with our neighbours? And our cost of living is going to rise,'" MacDonald said.
During his meetings, he also spoke with the Washington-based National Potato Council.
He noted that while American exporters have been active in the Mexican market, Canada has not yet explored that opportunity, so that's a strategy he believes could help reduce Canada's reliance on the U.S. market.
With files from Island Morning