Tories call for House hearings on U.S. tariff threat as Liberals navigate internal problems

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 Canadian 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 called on Tuesday for 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.

The Tories brought a motion before the House of Commons on Tuesday to try to schedule those meetings, but did not get support to proceed. The House is currently scheduled to resume sitting on Jan. 27.

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's graduate school of international affairs. "Clearly, the situation was mishandled and Freeland felt humiliated."

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," Trump wrote.

Poilievre argued this 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 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 over 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.

Despite the mixed messages, Ford argued Monday the premiers will take a "Team Canada" approach and are more stable than the federal government.

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

He said differences in opinion are normal, but it "simply isn't helpful at this moment" to have premiers openly debating whether to cut off energy exports or if Canada's top priority should be to avoid counter-tariffs under all circumstances.

"There is a huge temptation for politicians to exploit the obvious unpopularity of Justin Trudeau for their own, local advantage," Paris 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 argued some premiers are falling for a tactic by Trump to throw off an opponent ahead of a negotiation by having them undertake pre-emptive concessions.

"Despite the instability in Ottawa, it's incumbent on the premiers to work with the government now in office," he said. "We only have one prime minister at a time."

Laura Dawson, an expert on Canada-U.S. relations and the executive director of the Future Borders Coalition, said Ottawa is facing "smoke and mirrors" from Trump, with social media postings that don't offer clarity on how much action on the border he would deem to be sufficient.

Dawson said Freeland was a "strong, focused negotiator," and she said federal instability risks undermining a co-ordinated response.

"Even the threat of tariffs destabilizes Canada, because it affects investor confidence, so that is really something to worry about," she said.

Dawson said ideally Ottawa can set a measured tone with Washington and have the provinces outline specific retaliatory measures that might occur.

She noted that Trump has carte blanche to implement tariffs based on national-security grounds, though they only apply for a limited time without congressional approval.

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

The group's policy head, Matthew Holmes, said the "dual emergency" is both the tariffs and the apparent lack of federal leadership.

"The fact that the provinces are so fragmented and are sharing their own ideas on strategy is itself a sign of the lack of cohesion at the federal level right now," Holmes said.

"The emergency is partly the drama that's gripped Ottawa over the last couple of days, but it's also the profound long-term effect that dropping this ball could have for Canada and for our economy."

He said sectors ranging from chemistry and car manufacturing to trucking and agriculture all have concerns about cross-border trade and jobs. Many feel Trump has a stronger hand than in his first term, where an organized effort helped stop and prevent tariffs against Canada.

"There's confusion out there around the Team Canada approach that's been talked about a lot, but few of the associations around the table have seen results from that," he said.

"There are a lot of businesses and sector groups and trade associations that are going to Washington directly themselves."

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