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NATO spending, tariff talk looms as Joly heads to Washington

Canada鈥檚 foreign fffairs minister meets with the new U.S. secretary of state
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Minister of Foreign Affairs Melanie Joly answers questions from journalists before a meeting of the Liberal caucus in West Block on Parliament Hill in Ottawa, on Thursday, Jan. 23, 2025. THE CANADIAN PRESS/Justin Tang

Foreign Affairs Minister M茅lanie Joly will press Canada鈥檚 case against damaging tariffs with the new U.S. secretary of state in Washington next week, after Trump repeated a demand Thursday for allies to vastly increase their military spending.

Trump is threatening to impose 25 per cent across-the-board tariffs on imports from Canada starting on Feb. 1. Joly said things are still in flux because Trump hasn鈥檛 confirmed his new commerce secretary.

鈥淭here will be lots of rhetoric,鈥 Joly told reporters on Parliament Hill on Thursday.

鈥淲e will hear a lot of different versions coming from south of the border. We need to put our head down, we need to be united and we need to defend Canadian jobs.鈥

Joly spoke with U.S. Secretary of State Marco Rubio for half an hour by phone Wednesday and will meet with him in person next week. She said Rubio is a 鈥済ood interlocutor鈥 and she鈥檚 had 鈥渃onstructive鈥 discussions with him, including when they met last December before his formal confirmation.

鈥淗e understands that not only this will have an impact on Americans, but this will have an impact on how the U.S. engages in the world, and that will have an impact geopolitically,鈥 she said in reference to the tariff threat.

鈥淚 also talked about the importance of standing up against China together. And Rubio himself has been very hawkish against China.鈥

Joly said she will meet with 鈥渙ther key Republican senators鈥 during her fifth visit to the U.S. since last November鈥檚 presidential election. She said Canada will participate in Trump鈥檚 planned review of trading practices.

She called for unity on Canada鈥檚 trade strategy. The premiers of Alberta, Quebec and Saskatchewan have pushed back on Ottawa for floating the idea of imposing dollar-for-dollar retaliatory tariffs and cutting off energy exports.

鈥淎lberta jobs are important as Ontario jobs, as Quebec jobs. It鈥檚 not a competition,鈥 Joly said.

鈥淲e can all work together to make sure that, ultimately, we face together this existential threat against our economy.鈥

Also on Thursday, Trump repeated his previous calls for NATO military allies like Canada to spend five per cent of their GDP on defence 鈥 a target that no NATO country currently meets.

In his speech to the World Economic Forum meeting in Davos, Trump also lamented the United States鈥 鈥渢remendous deficit with Canada鈥 in trade.

鈥淐anada has been very tough to deal with over the years, and it鈥檚 not fair,鈥 he said, adding that the U.S. doesn鈥檛 need Canadian commodities.

Prime Minister Justin Trudeau responded by citing Ottawa鈥檚 planned increases to military spending and said Canada is a partner to the U.S. in an unstable world.

He said Trump鈥檚 vision for an economic boom in the U.S. will require 鈥渕ore of the things that Canada is already sending鈥 it, such as energy, minerals and lumber 鈥 all of which Ottawa could block or make more expensive in response to U.S. tariffs.

鈥淐anada will have a strong, robust response, because we don鈥檛 want this, but we will respond if necessary,鈥 Trudeau said.

He said the point of Canada鈥檚 tariff strategy is 鈥渘ot to figure out how to manage these tariffs and live with them over the long term, but to figure out how to get them removed as quickly as possible.鈥





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