U.S. wants to ditch trade ‘status quo,’ Lutnick says after Canadian talks​on March 14, 2025 at 2:38 pm

The United States wants to pursue “fair trade” with Canada but says its goal is to “eliminate the status quo” of trade measures it says restrict American exports, U.S. Commerce Secretary Howard Lutnick said in a statement after meeting Canadian officials on Thursday.

Finance Minister Dominic LeBlanc, Ontario Premier Doug Ford, Industry Minister François-Philippe Champagne and Canadian Ambassador to the United States Kirsten Hillman met with Lutnick and U.S. Trade Representative Jamieson Greer on Thursday.

Lutnick said in a read-out issued Thursday night: “By building balanced and fair relationships that eliminate the current status quo of overwhelming trade deficits and crushing foreign restrictions, the Trump Administration will help U.S. companies, large and small, prosper in the global marketplace.”

The trade deficit for the U.S. with Canada is because of the high energy needs of the U.S. economy.

Without Canadian energy exports, the trade relationship is reversed. The U.S. enjoys a trade surplus of around $60 billion in its relationship with Canada when one doesn’t count energy exports.

Lutnick said the two sides discussed U.S. President Donald Trump’s steel and aluminum tariffs and his administration’s “goal of fair trade with Canada and the province of Ontario, while working to secure America’s border and eliminate fentanyl.”

According to Canadian federal data, less than one per cent of the fentanyl entering the U.S. comes from Canada.

Data from the U.S. Customs and Border Protection agency shows that in January, fentanyl seizures at the Canada-U.S. border dropped to their lowest levels since 2023, with less than 14 grams seized during the month. Over 19 kilograms of fentanyl from Canada were apprehended in the last fiscal year.

Lutnick said he and Greer “highlighted the Trump Administration’s steadfast commitment to pursuing fair trade and Canada’s potential role in those efforts. Both countries recognized the strength and history of their relationship.”

Thursday’s discussions capped off a dramatic week in which Ford on Monday imposed a 25 per cent charge on all electricity sold from his province to New York, Minnesota and Michigan, in retaliation for American tariffs on Canada imposed earlier in the month.

Trump then threatened to double the incoming tariff set for Wednesday on steel and aluminum to 50 per cent from 25 per cent. Hours later, Ford said the energy surcharge would be paused after a meeting with Lutnick was arranged.

Trump’s steel and aluminum tariffs kicked in Thursday morning at 25 per cent, as did $29.8 billion in additional Canadian retaliatory tariffs.

Ford said the meeting with U.S. officials on Thursday was “productive.”