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Charest speaking to model parliament students at Alexander Galt in April 2018

Jean Charest on trade, Trump, and the future of U.S.-Canada relations

By William Crooks

Local Journalism Initiative

With Donald Trump currently serving as President of the United States, Canada faces a rapidly evolving trade landscape that could have significant economic repercussions. Trump has taken a firm stance on trade policy, threatening to impose tariffs on key trading partners and pushing for a re-evaluation of long-standing agreements.

According to The Globe and Mail, the latest round of tariff threats has raised concerns among Canadian manufacturers, particularly in the auto and agricultural sectors. Meanwhile, CBC News reports that federal officials are preparing countermeasures to protect domestic industries and mitigate potential economic fallout. Against this backdrop, lawyer and former Quebec Premier Jean Charest provides insight into how Canada can navigate these challenges and protect its economic interests.

“I’m part of two councils,” Charest explained from Florida in a Feb. 4 interview. “One is the U.S.-Canada Trade Council, which is a private sector organization. The other is the Prime Minister’s advisory committee, which is a group of people selected by the prime minister to be debriefed on negotiations and to offer advice.” While these groups operate independently, they share a common goal: addressing the challenges posed by the evolving U.S.-Canada trade relationship.

Navigating a shifting trade landscape

Charest described the current period, in which Trump has delayed his 25 per cent across-the-board tariffs on Canadian goods by 30 days, as an opportunity for Canada and the U.S. to develop a common understanding of trade priorities. “This period will allow us to read from a common song sheet in regards to what are the facts and what are the issues,” he said. One of the most pressing matters is the use of tariffs as a political tool. “The use of tariffs to try to sanction Canada is way, way, way disproportionate,” Charest stated. He stressed that any meaningful discussion must start with recognizing the deep economic interdependence between the two countries. “It isn’t just a matter of saying, ‘I’m bigger, you’re smaller.’ It’s a lot more complex than that.”

Trump’s negotiating tactics

With Trump’s continued leadership, Charest acknowledged that Canada must be prepared for aggressive trade tactics. “His negotiating tactics are known. They are to start with hitting the other side on the head, destabilize them, create some chaos, take in some concessions that people often spontaneously offer, and then negotiate.” However, Charest pointed out that Trump’s recent retreat from a hardline position on tariffs was largely due to pushback from the U.S. private sector. “I’m very much convinced that the reaction in the United States from the private sector had a lot to do with him backing off.”

Still, he warned that Canada cannot afford complacency. “We don’t have any time to waste in the next 30 days,” he cautioned, outlining the need for direct engagement with U.S. stakeholders. “The most efficient thing we can do is talk to our counterparts in the United States—business associations, governors, congressmen—and those who are doing business with American partners to make sure they understand the consequences of bad trade decisions.”

Charest was careful to identify two separate but related challenges facing Canada. “There’s the tariff [related to] fentanyl and immigration, but there’s also the broader issue of increasing tariffs in general.” He noted that Trump has requested a trade report by April 1, which could set the stage for further economic uncertainty.

Does Trump have a hidden agenda?

When asked whether Trump has unstated goals, such as pressuring Canada to increase military spending, Charest said he believes the President has been clear about his priorities. “For example, on military spending, they’re right. Canada has not lived up to the commitment of spending 2 per cent of GDP. And we should, for our own sake, not because anyone else asks us to do it.” He added that Canada must be vigilant about protecting its natural resources. “Trump will have an eye on our natural resources, and that may include water. These are extremely important assets for Canada, and we need to do whatever we can to protect them.”

Distinguishing between Trump and the American people

Despite concerns over Trump’s policies, Charest emphasized that Canada’s relationship with the U.S. extends beyond any one administration. “It’s important for us to understand the difference between Donald Trump and the American people,” he said. “Our relationship with the United States predates Trump and will continue beyond him.” He noted that people in the Eastern Townships, in particular, have longstanding ties with their American neighbours. “We get along with our neighbours to the south, and it’s important to remind ourselves of that.”

What comes next?

Looking ahead, Charest believes Canada must adopt a proactive approach. “What I’m encouraging the government of Canada to do is everything in our power to talk to our American neighbours and friends. We need to double down on whatever we can do to talk to the people we do business with.” He urged municipal leaders to engage directly with their U.S. counterparts. “Mayors need to talk to their neighbouring mayors and municipalities along the Eastern Townships’ [border]. We need to talk to the governors that we are neighbours with.”

One example is Vermont Governor Phil Scott. “Though Scott is a Republican, he did not vote for Donald Trump and was public about that in the last campaign. We have an outstanding relationship.” Charest stressed that maintaining these ties is essential to ensuring decisions are made based on economic realities rather than ideology. “We need to continue to talk to those folks so that we work together with them to avoid any bad decisions being made for the sake of ideological argument.”

The bigger picture

For Charest, the evolving trade dynamic presents an opportunity for Canada to rethink its global position. “I think we will thank Donald Trump one day for all of this because Canada is going to have to rethink its place in the world and its economy.” He sees this as a chance for the country to address long-standing internal trade issues. “Trump will force us to address a number of issues like internal trade and other things that we may not have done otherwise.”

At the same time, he acknowledged that Canada’s relationship with the U.S. is permanently shifting. “It’s changed and will change forever. We’re never going to return to the kind of relationship we had in the past.”

As Canada prepares for the next phase of U.S. political and economic developments, Charest’s insights highlight the importance of strategic engagement. With trade, security, and economic policy on the line, the coming months will be critical in shaping the future of the Canada-U.S. relationship.