Canadian Prime Minister Justin Trudeau announced on Thursday the re-establishment of a special Cabinet committee dedicated to Canada-US relations, citing concerns over a second Donald Trump presidency, The Associated Press reports.
The committee, chaired by Deputy Prime Minister and Finance Minister Chrystia Freeland, will also include key officials such as the ministers of foreign affairs, public safety, and industry. Trudeau’s office said in a statement that the committee will “focus on critical Canada-US issues” following the election of President Trump for a second term.
Canada, one of the world’s most trade-dependent nations, relies heavily on the US market, with 75% of its exports going south of the border. Trump’s first term saw significant friction in the bilateral relationship, notably his renegotiation of NAFTA, which became the US-Mexico-Canada Agreement (USMCA), and threats of imposing a 25% tariff on the auto sector, viewed as an existential threat in Canada.
While Trump’s first term saw tensions with Canada, ties between the two countries remain strong. Trudeau congratulated Trump on his victory and discussed the USMCA during a phone call on Wednesday. The agreement, which replaces NAFTA, is scheduled for review in 2026.
Freeland addressed reporters on Wednesday, seeking to reassure Canadians: “I know a lot of Canadians are anxious. I want to say with utter sincerity and conviction to Canadians that Canada will be absolutely fine,” she said. “We have a strong relationship with the United States. We have a strong relationship with President Trump and his team.”
However, anxieties persist about the potential impact of Trump’s trade policies. During the recent election campaign, Trump proposed tariffs ranging from 10% to 20% on foreign goods, with some speeches hinting at even higher percentages.
Nelson Wiseman, a political science professor at the University of Toronto, anticipates further pressure on Canada regarding military spending, with Trump expected to push for increased defense contributions from NATO allies. Canada’s military budget currently sits below the 2% target set by NATO, with Trudeau pledging to reach that target by 2032.
Despite potential challenges, the two countries remain deeply intertwined. They are each other’s largest trading partners, with goods and services valued at nearly $3.6 billion Canadian (US$2.7 billion) crossing the border daily.
