As Canada grapples with the possibility of sweeping tariffs from President-elect Donald Trump, Energy and Natural Resources Minister Jonathan Wilkinson revealed that even many U.S. Republicans remain uncertain about Trump’s trade strategy.
After a series of meetings in Washington, D.C., Wilkinson disclosed that only a small inner circle in Trump’s administration is aware of the specifics surrounding the proposed tariffs. Trump has suggested implementing a 25% tariff on all exports to the U.S., raising alarms across Canada’s economic and political landscape.
“Even Republican senators and Congresspeople who are close to the administration lack clarity on what the tariffs might look like,” Wilkinson said.
He noted that three potential scenarios are being discussed:
- A flat 25% tariff,
- A 10% tariff, or
- A scaled duty that increases over time.
Initially justified by concerns over drug trafficking and immigration, Trump’s tariff rhetoric has now shifted to the trade deficit between the U.S. and Canada.
“In terms of what more he wants, I’m not even sure the president himself fully knows,” Wilkinson remarked. “This appears to be about creating leverage.”
Wilkinson’s visit followed Foreign Affairs Minister Mélanie Joly’s recent meetings in Washington to strengthen the bilateral partnership and address the tariff threat. Prime Minister Justin Trudeau has also taken steps, forming an 18-member Canada-U.S. relations council to develop a unified national response.
“We have a shared sense of purpose, a shared understanding, and a commitment to stand together on a united path forward,” Trudeau said after meeting with provincial premiers in Ottawa.
However, unity has proven elusive. Alberta Premier Danielle Smith declined to sign the joint statement, expressing firm opposition to federal policies that would allow export tariffs or bans on Alberta’s energy products.
Smith’s statement reads:
“Alberta will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies.”
Meanwhile, Wilkinson criticized conflicting messaging from Canadian leaders, including NDP Leader Jagmeet Singh’s proposal to tariff critical minerals exported to the U.S.
“To be honest with you, Mr. Singh is not helping Canada by saying things like that publicly,” Wilkinson said.
Canada’s approach remains cautious as officials monitor developments. Wilkinson highlighted that clear, unified communication is essential to strengthen Canada’s case to U.S. legislators and industry leaders.
As tensions rise, the federal government faces the challenge of balancing national interests with maintaining a strong Canada-U.S. relationship.