Trump’s strategy is to create economic uncertainty in other countries: Freeland

With Donald Trump as president, the U.S. has an open strategy of creating economic uncertainty in other countries to discourage investment “anywhere other than the United States,” Finance Minister Chrystia Freeland said.

“We have to be candid about the reality of the incoming U.S. administration,” she said at a news conference in Toronto on Friday.

Freeland described the Trump administration as proudly economic nationalist.

She said there is a global fight for capital, investment and the jobs they bring, and Canada needs to be assertive in fighting for capital.

“We need to own the podium and say Canada is a great place to invest,” she said.

Freeland promised to elaborate on those comments in the government’s fall economic statement, which is scheduled to be released on Monday.

The federal and provincial governments are working out how navigate Trump’s threat to impose 25 per cent tariffs on all imports from Canada when he takes office in January.

Prime Minister Justin Trudeau met on Wednesday with Freeland, Public Safety Minister Dominic LeBlanc and the country’s premiers.

Ontario Premier Doug Ford said after the meeting that Ottawa is preparing retaliatory tariffs. He also threatened to restrict electricity exports from Ontario, while an official in his government floated the idea of effectively barring sales of American alcohol.

Not all provinces are planning a similar approach. Alberta Premier Danielle Smith said that “under no circumstances will Alberta agree to cut off oil and gas exports.”

Newfoundland and Labrador Premier Andrew Furey said his government isn’t interested in stopping the export of energy to the U.S., while Manitoba Premier Wab Kinew would not directly say whether his province would threaten to withhold hydroelectric exports.

Speaking earlier in the week, Freeland said the country would take a “Team Canada” approach to the threat of tariffs.

“We know that this is a moment when Canada needs to be strong, smart and united,” she said.

This report by The Canadian Press was first published Dec. 13, 2024.