In an effort to help people better understand the looming tariffs on Canadian goods, set to go into effect on March 1 unless a new deal is reached, the World Affairs Council of New Hampshire reached out to the Canadian Consulate General to New England for a statement. Below is a message from Consul General Bernadette Jordan.
UNCLASSIFIED | NON CLASSIFIÉ
Dear New Englanders,
In true Canadian fashion, let me begin with an apology: I’m sorry it’s come to this. Never in my wildest dreams did I think there would come a day when Canada and the United States would be at such odds. Canadians are truly disappointed and disheartened with the U.S. imposing 25% tariffs on Canadian goods and 10% tariffs on Canadian energy. Unfortunately, the threat of those tariffs remains a reality: the Feb. 1st Executive Order imposing those tariffs has only been paused for 30 days, not rescinded.
This is not where Canada wants our relationship to be. Canadians are proud to be America’s neighbor, friend, partner and ally. We’re proud of the economic union that we’ve built up over the years. A union that is worth nearly USD $1 trillion dollars a year in bilateral trade, where Canada serves as the top market (i.e. #1 customer) for 36 states. A union that sees Canadian raw materials like steel, aluminum, energy, forest products, seafood and agricultural goods exported to US manufacturers, who turn those inputs into finished goods sold around the world. Here in New England, it’s Canadian fuel that fills the trucks and planes that ship those goods elsewhere. All of those Canadian inputs make the U.S. competitive and prosperous.
The Reality of Tariffs
The tariffs will not be paid by foreign governments. Those additional costs will be paid by the American company that imports the goods, and then likely funneled down to the end consumer. This will only mean jobs losses for U.S. businesses and higher costs for New Englanders. In this cold winter, your heating costs will go up. So will the price you pay at the pump. Grocery prices are already high, but tariffs will only push them higher. And as you grapple with housing affordability issues, construction costs will only rise.
The Northern Border
The White House cites “illicit drugs” and “illegal migration” from the northern border as warranting these tariffs. Like communities in New England, communities in Canada have been devastated by the scourge of fentanyl. But fentanyl from Canada is not pouring into the United States. In fiscal year 2024 (October to September), U.S. CBP seized only 43 pounds from the Canada-U.S. border – less than 0.2% of what was seized nationwide. And less than 1% of illegal migrants entered the U.S. from Canada. I would note too that the border works both ways: sometimes there are items entering Canada that we would prefer not to see.
Canadians want to work with the United States on strengthening our border; after all, a threat to you is a threat to us. The best way to approach these common challenges would be for our law enforcement agencies to continue finding ways to work together, as Canada proposed in our $1.3 billion Border Plan . In addition to enhancing coordination with our American partners, that Plan includes reinforcing the border with helicopters, additional frontline personnel, and increased resources to stop the flow of fentanyl. That Plan is seeing results , with illegal crossings down 89% since last June. Still, on Feb. 3rd, Prime Minister Trudeau announced that Canada would appoint a fentanyl “czar”, list cartels as terrorists, and ensure a 24/7 eyes on the border, while providing another $200 million investment to combat organized crime and fentanyl. Canada and the U.S. also agreed to launch a Joint Strike Force to combat organized crime, fentanyl and money laundering.
Trade Balances
The White House often cites trade deficits as a reason to impose tariffs. According to data from the U.S. Department of Commerce:
- In 2024, the U.S. merchandise trade deficit with Canada was US$64.2 billion, driven entirely by energy products.
o Excluding energy, the U.S. has had a merchandise trade surplus with Canada since 2007, standing at US$34.3 billion in 2024. New England exported US$9.4 billion in goods to Canada in 2023.
- The U.S. has also had a services trade surplus with Canada for more than the last two decades. This surplus stood at US$31.7 billion in 2023. New England exported US$4.2 billion in services to Canada in 2023.
Building Things Together
The best way to usher in the Golden Age of America is to partner with Canada. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy – with inputs like critical minerals for semiconductors and battery technologies, reliable and affordable energy for your homes and factories, potash for your farmers’ fields, and shared values that underpin our communities and workers. We stand at the ready to work together.
Throughout the years, Americans and Canadians have been there for one another in times of triumph and despair. Together, we have built the most successful economic, military and security partnership the world has ever seen, a relationship that has been the envy of the world. Let’s grow that partnership!
I hope you will engage with members of your community, political leaders in your State, members of Congress and the new administration to help them understand the negative impacts that the proposed tariffs will have on your communities and businesses.
Hon. Bernadette Jordan
Consul General of Canada in New England