OTTAWA — U.S. Ambassador Pete Hoekstra has indicated that American tariffs on Canadian products are likely to remain a fixture in trade relations. In a recent interview, he expressed limited optimism that direct discussions between President Donald Trump and Prime Minister Mark Carney could lead to the complete removal of these tariffs.
Hoekstra stated that Trump and U.S. Commerce Secretary Howard Lutnick are engaged in private negotiations with Canada to establish a new economic and security relationship. He noted, “Tariffs are a part of the framework moving forward.” The ambassador emphasized that the president has the authority to adjust tariff levels at any time during negotiations.
While there is a possibility that tariffs could be lifted, Hoekstra cautioned, “At this point in time, I believe that they have said it will, it is, part of the framework moving forward.” He elaborated that discussions are focused on the specifics of tariff levels and their application, rather than aiming for a complete elimination.
Hoekstra revealed that Trump and Carney have been in regular contact since their meeting on May 6 in Washington. This includes ongoing discussions between Lutnick and Canada’s Minister Dominic LeBlanc. However, the Prime Minister’s Office has not provided details about these conversations.
A senior Canadian official, who requested anonymity, confirmed the high-level discussions but did not disclose the nature of the communication or the tone of the talks. The goal is to reach an agreement before Trump visits Canada for the Group of Seven leaders’ summit on June 15.
In light of Trump’s recent decision to increase tariffs on steel and aluminum, Carney has refrained from immediate retaliation. Hoekstra praised this move as “very encouraging.” He described the current negotiations as complex, stating, “I think there’s tougher negotiations happening right now.” He added that the framework being established will guide future discussions on trade, particularly concerning autos, energy, and critical minerals.
Hoekstra also mentioned that Trump has set certain “no-go zones” in the negotiations, although he did not specify what these are. Carney has previously outlined red lines for Canada, including protections for Quebec culture and supply-managed agricultural sectors.
The ambassador acknowledged that Canada’s dairy quota system has been a point of contention, as Trump argues it restricts American farmers’ access to the Canadian market. “It’s all on the table,” Hoekstra said, indicating that all sectors are subject to negotiation.
Additionally, the extent to which Carney’s commitment to increase Canada’s defense spending is part of the current negotiations remains unclear. Carney has pledged to meet NATO’s target of raising military spending to two percent of Canada’s GDP by 2030. He is also discussing Canada’s involvement in a new U.S.-led ballistic missile defense initiative.
Hoekstra stated that the U.S. expects Canada and other NATO allies to agree to a new military spending target of five percent of GDP. He suggested that Carney’s aspirations for global leadership may be overly ambitious, especially in light of Canada’s defense procurement decisions.
The ambassador expressed concern over the anti-American sentiment that has emerged in Canadian politics, noting a recent poll indicating that only 27 percent of Canadians view the U.S. as an ally. He remarked, “For the last six or eight months, you’ve seen both of your major political parties anti-America.”
At Queen’s Park, Premier Doug Ford emphasized the urgency of reaching a deal, stating that if an agreement is not reached soon, Canada may impose an additional 25 percent tariff on aluminum and steel. Ford remarked, “They’re working hard around the clock to try to get a deal.” He acknowledged the unpredictability of Trump’s decisions, saying, “Now we know President Trump, he wakes up in the morning, he could change his mind.”