Justin Trudeau pays Donald Trump Florida visit in bid to avert North American trade war

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Prime Minister Justin Trudeau dined with Donald Trump on Friday, after the US president-elect threatened to hit Canadian imports with steep tariffs on the primary day of his presidency. 

The meeting at Trump’s Mar-a-Lago resort in Florida made Trudeau the primary G7 world leader to go to Trump since his victory within the US presidential election this month. It followed phone calls between the 2 because the Canadian prime minister attempts to avert a North American trade war.

Trump’s appointee for commerce secretary, Howard Lutnick, who could have a serious role in overseeing trade, his candidate for national security adviser Mike Waltz, and his pick for interior secretary Doug Burgum also attended the event, in line with people aware of matter. 

The Canadian delegation, which included Trudeau’s chief of staff Katie Telford and Canada’s public safety minister Dominic LeBlanc, didn’t stay at Trump’s Mar-a-Lago resort, but at a distinct hotel in Palm Beach. 

The Trump transition team didn’t reply to requests for comment. On his Truth Social network, Trump posted that he had an “interesting special guest” at his table.

Earlier within the week, Trump threatened to impose a 25 per cent tax on all goods imported from Canada and Mexico unless each countries stop what he calls an “invasion” of medication into the US, “specifically Fentanyl”, and “all Illegal Aliens”.

On Wednesday, Canada’s government said it could bolster its border security after Trudeau met Canada’s provincial leaders to agree a united response to Trump’s threats. 

The US-Canada border is the longest on the earth, stretching nearly 9,000km across land and water. Security on land is light, there are few partitions or fences and in places it’s marked by easy stone markers along residential streets.

Blanket 25 per cent tariffs would push Canada right into a recession in 2025, cause a pointy spike in inflation and force the Bank of Canada to maintain rates higher next 12 months, in line with Tony Stillo, director of economics at Oxford Economics. 

“Canada’s energy, auto, and other heavy manufacturing sectors can be hardest hit by the blanket US tariffs due to the high degree of cross-border trade in these industries. These sectors rely heavily on exports to the US, but additionally source a sizeable share of their inputs from the US, making them highly exposed to tariffs,” he said.

Canada does have leverage within the $1.3tn-a-year trading relationship, specifically through its energy sector. Canada provides 60 per cent of US crude oil imports.

Lisa Baiton, head of the Canadian Association of Petroleum Producers, said: “A 25 per cent tariff on oil and natural gas would likely lead to lower production in Canada and better gasoline and energy costs to American consumers.”

Alberta Premier Danielle Smith posted on X that the first topic of dialogue between Trump and Trudeau was oil and gas pipelines. 

“It once more demonstrates that the trail to a robust security and economic relationship with the US is directly tied to our nation’s commitment to providing the US with the oil and gas it requires to attain its energy security and affordability goals,” she said. 

Smith urged PM Trudeau to scrap Canada’s carbon emission targets and “start work on additional pipeline infrastructure” between Canada and the US.

It will not be the primary time Trudeau has faced Trump’s “America First” trade policy. In 2017 the then-president insisted on renegotiating the two-decade old North American Free Trade Agreement, which he described as a “disaster” that, together with China, had hollowed out the US manufacturing sector.

During his previous term in office Trump also chided Trudeau over Canada’s spending on defence, which was below Nato’s 2 per cent goal. Canada is increasing its defence budget but Trudeau told a Nato summit in July that the goal wouldn’t be reached until 2032.