Canada should start reviewing CUSMA with the U.S. as soon as possible, says former Trump official
U.S. president denies using tariff threat to renegotiate North American trade deal
A former economic adviser to U.S. President Donald Trump says Canada should begin reviewing the North American free trade deal with the United States as soon as possible, while Trump denies he's using tariff threats to force a renegotiation.
Everett Eissenstat, who served as deputy director of Trump's National Economic Council during his first term, said in an interview on Rosemary Barton Live that "there's no point in waiting a couple of years for this to really be engaged."
"I would begin the process as soon as Canada can be ready, because we know it's going to occur," he told host Rosemary Barton.
On Tuesday, the Wall Street Journal published a report that Trump is using the threat of tariffs on Canadian and Mexican goods to push for an early renegotiation of the Canada-United States-Mexico Agreement (CUSMA). The report cited people familiar with Trump's thinking.
The same day, Trump dismissed the report and reiterated his claim that Canada and Mexico have allowed "millions and millions of people to come into our country that shouldn't be here."
The trilateral trade pact must be reviewed in 2026. Trump promised during last year's election campaign that he would renegotiate the agreement.
By proactively starting a CUSMA review, Eissenstat said Canada can be "one of the first movers, which is always a good place to be in a new administration and really set the table on a lot of trade and economic matters that candidly will probably serve as a template for other economies."
"So I would encourage a quick engagement," he said. "I think it's more productive than delay."
Provinces debate tariff response plan
As for when Trump could actually level his tariffs, the U.S. president has shifted his timeline. He first promised to hit both Canada and Mexico with a sweeping 25 per cent tariff on his first day in office. Now, he claims he'll move ahead with the tariffs on Feb. 1.
Canadian officials have already drawn up a plan that will levy immediate tariffs on $37 billion worth of American goods if Trump moves against Canada — rising to $110 billion if the president doesn't back down.
One sticking point between the federal government and some provinces is whether to consider dollar-for-dollar matching tariffs. Prime Minister Justin Trudeau said on Tuesday he supports the principle, while Saskatchewan Premier Scott Moe said the move would be too harmful to Canadians.
Former Alberta premier Jason Kenney said on Rosemary Barton Live that dollar-for-dollar tariffs "absolutely" have to be on the table because "weakness is catnip for somebody like President Trump."
"Canadian leadership needs to be strong, united and to some extent ambiguous about what our responses might be," Kenney said. "We just need [the U.S.] to know that there will be a firm response."
Industry Minister François-Philippe Champagne said the Canadian government's strategy has "always been to prevent and prepare."
Since Trump began issuing his tariff threats, he's shifted back and forth on his irritants. Sometimes he claims the Canada-U.S. border is porous — as he did on Tuesday — while on other days he criticizes Canada's trade deficit with the U.S. or Canada's defence spending.
Champagne said one way to combat Trump's moving goalposts is "to not negotiate against ourselves" and present a united front. He also said Canada can't react "every single time the president or someone in the administration [makes] a comment."
"Let's be steady, let's be confident, let's be serious and let's make sure we stand for Canada at every step of the way," Champagne said.
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With files from John Paul Tasker