The federal government is working on assessing the potential reactions to the tariff hike promised by the Trump administration. To assist in this effort, Prime Minister Justin Trudeau has established a new Canada-U.S. Council.
This 18-member council includes representatives from the auto, union, industrial, and agricultural sectors. Canada’s Ambassador to the United States, Kirsten Hillman, former ambassadors David MacNaughton and Jodi Thomas, and the Prime Minister’s former national security advisor are part of the council. The list also includes three former premiers: former Quebec Premier Jean Charest, former Nova Scotia Premier Stephen McNeil, and former Alberta Premier Rachel Notley. Notley’s former chief of staff, Brian Topp, is also on the list. Charest had participated in the 2022 federal Conservative Party leadership race but lost to Pierre Poilievre.
After taking office, U.S. President Donald Trump threatened to impose a 25% tariff on all goods imported from Canada. Canadian business groups and industry leaders have warned of the severe impact this would have if implemented. However, it is still uncertain whether Trump will follow through on this threat, and if so, to what extent.
The Canadian Chamber of Commerce has projected that if a 25% tariff is imposed, Canada’s economy could shrink by CAD 78 billion, potentially pushing the country into an economic recession by next summer. Meanwhile, the U.S. economy could also suffer losses of USD 467 billion.
Prime Minister Justin Trudeau has already held meetings with the country’s 13 premiers to discuss the possible consequences of Trump’s tariff imposition and how to allocate funds collected from counter-tariffs. The money will be used to compensate businesses affected by U.S. tariffs.
Other members of the Canada-U.S. Relations Council include entrepreneur and venture capitalist Arlene Dickinson, CEO of auto parts manufacturer Linamar Corporation Linda Hasenfratz, Unifor National President Lana Payne, Automotive Parts Manufacturers’ Association President Flavio Volpe, Canadian Council for Indigenous Business President and CEO Tabatha Bull, Chairperson and CEO of Rail Holdings Shahrazaad Rafati, independent senator, labor leader, and former Canadian Labour Congress President Hassan Yussuff, entrepreneur and businessperson Wes Hall, President of l’Union des producteurs agricoles Martin Caron, and Cameco CEO Tim Gitzel.
