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U.S. Ambassador Says Canada Can Turn Trump's Trade Threats Into Opportunity

Canada finds itself in an unexpected position after U.S. Ambassador Pete Hoekstra reframed Trump's CUSMA threats as a negotiating opening. Hoekstra says America has a 'tremendous' need for things beyond its borders — and Canada could be the one to fill them.

·ottown·3 min read
U.S. Ambassador Says Canada Can Turn Trump's Trade Threats Into Opportunity
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Trump Said America Doesn't Need Canada. His Ambassador Disagrees.

One day after U.S. President Donald Trump declared his country doesn't need anything Canada has to offer, U.S. Ambassador to Canada Pete Hoekstra was singing a different tune — and the mixed messaging is raising eyebrows on both sides of the border.

Speaking at a Eurasia summit, Hoekstra said the United States actually has a "tremendous" need for goods and resources from beyond its own borders, and that if Canada steps up to meet those needs, it will strengthen both nations. The remarks came just 24 hours after Trump's pointed comments casting doubt on the value of the Canada-U.S.-Mexico Agreement (CUSMA), the trade deal that underpins hundreds of billions of dollars in annual cross-border commerce.

An Offer Canada Can't Refuse?

Hoekstra's framing was pointed: he suggested Canada should view the current trade turbulence not as a threat, but as an opening — a chance to "make us an offer" and prove its value as a partner.

It's a curious posture. Trump has repeatedly dangled the possibility of tearing up CUSMA when it comes up for review in 2026, using the threat as leverage on issues ranging from fentanyl to tariffs on Canadian steel and aluminum. Hoekstra appears to be threading a needle — keeping pressure on Ottawa while leaving the door open to a deal that works for Washington.

For Canadian negotiators, the message is clear: show up, show what you've got, and hope the math works in your favour.

What's Actually at Stake

CUSMA governs roughly $1 trillion in annual trilateral trade between Canada, the U.S., and Mexico. Canada sends about 75 per cent of its exports south of the border — making the U.S. market not just important, but existential for large swaths of the Canadian economy.

Key sectors watching closely include Canadian oil and gas, automotive manufacturing in Ontario, softwood lumber, and agriculture. Any renegotiation that weakens Canadian access to American markets — or introduces new tariffs — could ripple hard through supply chains that took decades to build.

The federal government has been walking a careful line: pushing back on Trump's most aggressive moves while avoiding a full-blown trade war that neither economy can afford.

Ottawa's Play

Canada's trade team has been busy. Prime Minister Mark Carney's government has signalled it's prepared to negotiate, but not capitulate — and has been building coalitions with other trading partners to diversify away from American dependency over the long term.

There's also the political reality: Carney came to office in part on a promise to stand firm against American economic pressure, and any deal that looks like a cave will be scrutinized hard by Canadians who've watched Trump use CUSMA as a cudgel since his first term.

Hoekstra's "make us an offer" framing puts the ball squarely in Canada's court. Whether Ottawa sees that as an opportunity or a trap likely depends on who's in the room when the negotiations begin in earnest.

The CUSMA review process kicks off formally in 2026. Buckle up.


Source: CBC Politics. Original reporting by CBC News.

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