Wilbur Ross suggests Canada could strengthen ties with the US through increased defence spending
US President-Elect Donald Trump is expected to pursue his plan to impose tariffs on imports.
However, former US Commerce Secretary Wilbur Ross suggested that key sectors, such as Canadian oil and gas, may receive exemptions, according to Financial Post.
Canada, the largest external energy supplier to the US, supplied nearly US$160bn in energy products in 2022, primarily in crude oil, petroleum products, and natural gas.
Ross remarked on the importance of Canadian energy imports, stating, “We import a lot of energy from Canada. I can’t imagine that the president would want to tax that, because all it would do would be to raise our costs and not help anything with more American jobs.”
He suggested that fears regarding potential tariffs on Canadian energy might be exaggerated.
Trump, who has referred to “tariff” as the “most beautiful word in the dictionary,” has positioned tariffs as central to his protectionist trade approach, which he claims will bolster US manufacturing.
During his term as commerce secretary from 2017 to 2021, Ross oversaw the imposition of tariffs on various goods, including steel and aluminum from China, Canada, Mexico, and the European Union.
He also played a role in replacing the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA), introducing new rules on auto manufacturing and other trade aspects.
In addition to trade, Ross emphasized the need for western countries to increase their defence budgets.
He highlighted Trump’s longstanding critique of North Atlantic Treaty Organization (NATO) members, including Canada, for falling short of their commitment to spend two percent of their gross domestic product (GDP) on defence.
“Clearly the world is a more dangerous place right now,” Ross stated in his interview with the Canadian Broadcasting Corp.
He added, “Canada has to realize that America does have a much sturdier set of principles and policies now than what it had before. So, if I were Canada, I would be looking for what things Canada can volunteer to do to facilitate the relationship with the US”
Ross’s comments highlight the Trump administration’s ongoing expectations for both economic and defence alignment with its allies, including Canada.
