TORONTO (AP) — Canada’s point person for U.S.-Canada relations said Tuesday she shares U.S. concerns that Mexico would serve as a backdoor for China to import cheaper goods into the North American market if an overhaul of the trade deal known as the US-Mexico. -Canada deal looms.
Deputy Prime Minister Chrystia Freeland said members of U.S. President Joe Biden’s outgoing administration and supporters and advisers of newly elected President Donald Trump have raised “very serious” concerns to her about the issue and that Canada shares them.
“We are perfectly aligned with the United States and that means we are not a backdoor for unfair Chinese trade goods,” Freeland said at a news conference. “The same cannot be said about Mexico.”
Canada announced this year that it is launching a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs imposed on what the countries say are Chinese subsidies that give the industry an unfair advantage. Canada has also imposed a 25% tariff on Chinese steel and aluminum. Mexico does not have comparable rates.
“We believe that China’s deliberate overcapacity is unfair and threatens key Canadian industrial sectors. It is a threat to Canadian jobs and that is why we have imposed 100% tariffs on Chinese EVs, and 25% tariffs on Chinese steel and aluminum,” Freeland said.
Mexico’s Foreign Ministry did not immediately respond to a message seeking comment.
Canadian Prime Minister Justin Trudeau called Trump after his election victory and the two discussed the trade deal Trump reached with Canada and Mexico during his first term, the USMCA, which replaced the North American Free Trade Agreement (NAFTA).
Ottawa will soon have to focus on a planned review of the agreement in 2026.
Doug Ford, the premier of Canada’s most populous province Ontario, suggested this month that Canada should pursue a bilateral trade deal with the U.S. if Mexico does not restrict imports of Chinese cars entering North America.
During the recent US election campaign, Trump proposed tariffs of 10% to 20% on foreign goods – and in some speeches he has mentioned even higher percentages.
Freeland chairs a special Cabinet committee on U.S.-Canada relations designed to address concerns about another Trump presidency. She spoke to reporters after a committee meeting on Tuesday.
During Trump’s first term, his decision to renegotiate NAFTA and reports that he was considering a 25% tariff on the auto sector were seen as an existential threat in Canada at the time.
Canada is one of the most trade-dependent countries in the world and 75% of Canadian exports, including cars, go to the US.
Freeland said this is a “serious time for our country” and called on Canada’s business and government leaders to come together.
