At a closed-door conference in Ottawa on Friday, Robert Lighthizer, the former U.S. trade representative during President Donald Trump’s first term, addressed a group of Canadian conservatives about the strained U.S.-Canada relationship. He reassured the audience that despite the unprecedented tensions between the two countries, there is potential for recovery. Lighthizer, known for his pro-tariff stance and as the architect of Trump’s aggressive trade policies, suggested that Canada can play a crucial role in mending the relationship by ramping up its defense spending, supporting the White House’s efforts against China, and negotiating a fresh North American trade deal.
In a candid statement, Lighthizer predicted that, in the long run, the relationship between the United States and Canada would not only recover but might even improve. "In the final analysis, the relationship between the United States and Canada is going to be as good or better than it has ever been, and the business relationship will be fine," Lighthizer said. His message was clear and offered a glimmer of hope to Canadians concerned about the economic challenges posed by Trump’s tariff policies.
Although Lighthizer no longer holds a formal role in the Trump administration, his views are still highly relevant, especially to those in Canada grappling with the fallout from U.S. trade decisions. As one attendee, Jason Easton—who had served as a trade adviser to former Prime Minister Justin Trudeau—noted, Lighthizer’s influence continues to loom large. “He is still relevant. I would view him as the godfather of American trade policy for this administration,” Easton remarked, underscoring Lighthizer's ongoing importance in shaping U.S. trade strategies.
Lighthizer’s recent book, No Trade is Free, has gained significant traction in Canada, becoming essential reading for politicians and policymakers trying to navigate the complexities of U.S.-Canada trade relations in the wake of Trump’s tariffs. Easton pointed out that the book has likely surpassed Trump’s own Art of the Deal as the go-to resource for understanding the intricacies of American trade policies. “His book is a must-read for anyone who wants to understand the current state of affairs with America in trade, whether you agree with Ambassador Lighthizer or not,” Easton emphasized, highlighting its importance in Canadian political circles.
During his speech, Lighthizer defended Trump’s controversial tariffs, acknowledging the global disruptions they caused but suggesting that there were potential benefits for Canada as well. “Canadian industry and Canadian workers have suffered from this international system in much the same way ours have,” he pointed out, making it clear that both countries have faced similar challenges in the global trade system.
His appearance came at a time when Canadians were heading to the polls for the April 28 federal election, where the economic impact of Trump’s tariffs was the central issue. Lighthizer’s words were highly anticipated, offering Canadian politicians and voters valuable insights into the complex dynamics of U.S.-Canada trade relations and how to potentially mitigate the impact of Trump’s trade policies.
The event was also marked by a discussion between Lighthizer and Mark Mulroney, the son of former Prime Minister Brian Mulroney, who played a key role in forging the original Canada-U.S. Free Trade Agreement with President Ronald Reagan. The exchange between Lighthizer and Mulroney provided further context for understanding the shifting dynamics of North American trade relations and the challenges both countries face in the current political landscape.
Lighthizer took the opportunity to expand on Trump’s rationale for implementing tariffs, emphasizing the need for the U.S. to address its long-standing trade imbalances. “We have to get to the point where the United States moves towards balanced trade,” he argued. Lighthizer contended that most of the world’s economies have flourished at the expense of the U.S. trade deficit, suggesting that this situation cannot continue indefinitely. His words reflected the broader sentiment within the Trump administration that America’s trade policy needed to be overhauled to ensure fairness and protect American interests.
Another point Lighthizer raised was his support for renegotiating the United States-Mexico-Canada Agreement (USMCA). However, he proposed a new twist: excluding Mexico from the deal. “It should be the United States and Canada trying to stop China and other places from coming in and taking advantage of this market,” Lighthizer stated, highlighting the concerns surrounding Chinese investment in Mexico. He suggested that Canada should align with the U.S. on this issue, ensuring that both countries work together to address foreign influence in the region.
Lighthizer also revealed that it was the previous Trudeau government that had insisted on a six-year sunset clause in the USMCA, under the assumption that the timing would allow Canada to avoid negotiating with Trump’s administration. He noted that under the second Trump administration, the landscape had shifted, and a new strategy was required. Lighthizer speculated that if Trump’s plan to reshore manufacturing to the U.S. proved successful, it could lead to a manufacturing renaissance in America. “If the president is right, and if it works out the way it should work out, we will find ourselves with a manufacturing renaissance in America,” he said, adding that it would be hard to believe that Canada wouldn’t benefit from this economic resurgence.
However, Lighthizer emphasized that Canada could not afford to drag its feet on increasing its defense spending. Despite Canada’s commitments to NATO, it has consistently fallen short of meeting the target of spending 2 percent of its GDP on defense, a threshold Trump has insisted should be raised to 5 percent. “Canada does not ... pay a share on national defense,” Lighthizer stated, calling the situation “quite unfair.” He stressed that Canada’s reluctance to increase defense spending had created an imbalance in the relationship between the two neighbors, with the U.S. shouldering a disproportionate share of defense costs.
Lighthizer’s remarks underscored the broader themes of fairness and balance that have defined Trump’s approach to trade policy. His insistence on ensuring that trade relationships are mutually beneficial and that allies like Canada contribute more to global defense efforts reflected the administration’s broader worldview.
In conclusion, while tensions between the U.S. and Canada have reached unprecedented levels in recent years, Lighthizer’s message offered a path forward. By aligning on key issues such as defense spending, countering Chinese influence, and renegotiating trade agreements, Lighthizer believes that the two countries can rebuild and strengthen their partnership. His speech resonated with many attendees, who left with a renewed sense of hope that the economic and political ties between the two nations could ultimately emerge stronger than ever.
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