Tories call for House hearings on U.S. tariff threat amid Liberal tumult

OTTAWA — The Conservatives are calling for Parliament to hold hearings in January on Canada-U.S. trade ahead of president-elect Donald Trump’s entry to the White House, as businesses and experts seek a coherent response to the threat of tariffs.

“We have a U.S. president(-elect) with a strong mandate, who is a powerful negotiator who can spot weakness from a mile away,” Conservative Leader Pierre Poilievre said Tuesday.

Trump has threatened to impose 25 per cent tariffs on all goods from Canada unless it stops the flow of migrants and illegal drugs into the U.S., though officials say both cross from Canada in negligible amounts.

The Tories say they have no faith in the Liberals to handle the situation after Monday’s resignation of former finance minister Chrystia Freeland, who was set to have a major role in shaping Canada’s response to Trump. Meanwhile, premiers have proposed conflicting policies to deal with the U.S.

The Conservatives want the House trade committee to hold hearings starting the week of Jan. 6 through to Trump’s inauguration on Jan. 20 to hear from ministers, senior officials and Canada’s ambassador in Washington.

Freeland played a pivotal role negotiating the new North American free trade deal with the U.S. and Mexico during Trump’s first presidency.

She was set to lead the way again, chairing a Canada-U.S. relations committee in cabinet that was revived after Trump won the election in November, and taking part in two recent first ministers’ meetings with premiers trying to shape a united Team Canada approach.

Freeland walked away from her role as finance minister on Monday, saying Trudeau had offered her a different job in cabinet and that they disagreed on what she called “costly political gimmicks” as Canada braces for a tariff war.

“She did an excellent job on the renegotiation of the NAFTA,” said Roland Paris, who leads the University of Ottawa graduate school of international affairs. “Clearly, the situation was mishandled and Freeland felt humiliated.”

Yet Paris, who used to advise Trudeau on foreign policy, said it’s clear Freeland irked Trump. On Monday, the president-elect decried Freeland on the platform Truth Social, saying she won’t be missed.

“Her behaviour was totally toxic, and not at all conducive to making deals which are good for the very unhappy citizens of Canada,” he wrote.

Poilievre argued that Trump’s social media post shows the Liberals’ mismanagement of the relationship with the U.S., and argued he would do a much better job as prime minister.

“President Trump has made it clear that he wants our jobs and our money. Justin Trudeau’s chaotic clown show will only help him get it,” Poilievre told reporters in Mississauga, Ont.

The Liberals on Monday earmarked $1.3 billion over six years to bolster border security and ensure the integrity of the immigration system, in response to Trump’s concerns.

Poilievre would not say Monday how much he would spend on securing the border, arguing the issue is not about spending amounts, but “boots on the ground” and the number of helicopters and drones.

Meanwhile, provinces have been at odds on how to respond to Trump’s threat of tariffs. All have been asked to identify measures that Ottawa could use to retaliate against the U.S. if needed, though some have gone further.

Ontario Premier Doug Ford has said he’s prepared to cut off electricity exports to bordering states, while Alberta Premier Danielle Smith has ruled out doing the same for oil and gas exports.

Smith has proposed a provincial border force for the 300-kilometre boundary with the U.S., while Saskatchewan Premier Scott Moe called for an election based on how Canada should deal with Trump.

Still, Ford argued Monday the premiers will take a “Team Canada” approach with Ottawa, painting the provinces and territories as more stable than the federal government.

He said all premiers agree on the need to tighten border security, and that Canada should meet its NATO commitment to spend two per cent of its GDP on national defence, which Trudeau has only pledged to meet by 2032.

“It’s chaos right now up in Ottawa and it’s time that what we do every single day, the premiers: we step up and we’ll make sure that we tell the world that there is stability here,” Ford said Monday, adding that premiers are planning a mission to Washington, D.C., in February.

Paris said it’s crucial that premiers have a coherent response that aligns with Ottawa, or risk Washington exploiting domestic divisions.

“There is a huge temptation for politicians to exploit the obvious unpopularity of Justin Trudeau for their own, local advantage,” he said.

“But this is a moment when it’s really in the national interest for Canadian leaders, to the greatest extent possible, to be co-ordinating their efforts and messages toward the United States.”

He said it is unhelpful to have “11 foreign ministers,” one per province, and said some premiers are falling for what he said is Trump’s habit of trying to throw off an opponent ahead of a negotiation by getting them to undertake pre-emptive concessions.

“Despite the instability in Ottawa, it’s incumbent on the premiers to work with the government now in office to co-ordinate their efforts with the Trump administration,” he said. “We only have one prime minister at a time.”

The Canadian Chamber of Commerce held an emergency meeting Tuesday to discuss the anticipated impact of U.S. tariffs, with more than 100 sectoral groups invited to attend.

This report by The Canadian Press was first published Dec. 17, 2024.

Dylan Robertson, The Canadian Press