(NewsNation) — Canada’s ambassador to the United States said Monday that 99% of products traded between the two nations are tariff-free, as tensions escalate following President Donald Trump’s imposition of new tariffs and Ontario’s retaliatory measures.
“Between Canada and the United States under the USMCA, the deal that we negotiated under President Trump in his first term, Canada and the United States are 99% tariff-free,” Ambassador Kirsten Hillman said on NewsNation’s “CUOMO” hours after meeting with Prime Minister-designate Mark Carney.
Hillman said that the remaining tariffed products are primarily in the agricultural sector and are specifically designed to protect small family farms.
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Hillman defended Canada’s position, noting that the United States sells three times as much dairy product to Canada as Canada sells to the U.S.
“Canada is your No. 1 customer, and you have a trade surplus with Canada in all manufactured goods,” Hillman said. “We provide affordable, reliable energy that helps fuel the U.S. economy.”
She explained that both nations maintain similar protective measures — the U.S. for sugar, dairy, fruits and vegetables, while Canada primarily restricts dairy imports.
These tariffs only activate after agreed-upon import quotas are reached, as negotiated under the USMCA.
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The Ontario government announced it implemented a 25% surcharge on electricity exports to Michigan, Minnesota and New York, affecting approximately 1.5 million homes and businesses. The measure could cost up to $400,000 per day, according to a statement from the premier’s office.
The Canadian action comes in direct response to the Trump administration’s recent 25% tariffs on Canadian and Mexican imports. Trump has since exempted automakers from the tariffs and delayed implementation for goods covered under the U.S.-Mexico-Canada Agreement.
Carney, who won the Liberal Party leadership with nearly 86% of the vote, is expected to be sworn in as prime minister within days.
He has taken a firm stance on the trade dispute, saying Sunday, “The Canadian government has rightly retaliated. … My government will keep our tariffs on until the Americans show us respect.”
NewsNation partner The Hill contributed to this report.
