Hoekstra Says Canada-U.S. Tariff Levels Remain Under Negotiation
Washington’s ambassador framed tariff levels as unresolved negotiations, signalling continued commercial uncertainty but no newly announced trade action.
U.S. Ambassador Pete Hoekstra said Oct. 20 that Washington was still negotiating what tariff levels should apply to Canadian products entering the U.S., while disputing the characterization of the bilateral relationship as ruptured. Speaking at a space-sector conference in Gatineau, he said the U.S. administration did not consider itself to be in a trade war with Canada, even as he acknowledged that Canadians may see the situation differently. [1]
The comments offer a limited official signal that tariff discussions remain open after negotiations on a new trade deal stalled in August, according to the report. Hoekstra pointed to roughly $2.5 billion in daily cross-border goods trade, most of it tariff-free, as evidence that commercial ties remain extensive despite the dispute. The remarks did not identify any tariff rate, negotiating timetable, agreement, or suspension of existing measures. [1]
Hoekstra also linked the trade discussion to Ottawa’s broader effort to reduce dependence on the U.S. Prime Minister Mark Carney has pursued new partnerships with the European Union, China and other jurisdictions and set a goal of doubling non-U.S. exports over 10 years. The ambassador said the U.S. was discussing trade with China while Canada reassessed its direction, indicating that Washington would not remain idle if Canadian cooperation changed. [1]
The envoy extended that message to space and defence cooperation, saying the U.S. could work with other partners if Canada chose not to participate in projects involving companies such as SpaceX or in the Golden Dome missile-defence initiative. Those statements underscore the political pressure surrounding wider bilateral cooperation, but they do not alter the existing tariff measures cited in the report: 50 per cent U.S. duties on roughly $28 billion in Canadian goods since Aug. 22, alongside earlier levies on steel, aluminum, autos and lumber, followed by Canada’s matching tariffs after Labour Day. [1]
For businesses, the immediate implication is continued uncertainty rather than a confirmed change in border costs. Exporters exposed to existing U.S. duties and Canadian retaliatory measures have no announced relief or escalation to price into from these remarks alone. However, the ambassador’s description of tariff levels as negotiable leaves the bilateral talks relevant to future market-access planning, while Canada’s diversification strategy may continue to influence commercial decisions outside the U.S. market. [1]
This is a low-to-moderate significance negotiation signal: the U.S. ambassador said tariff levels are still being negotiated and that Washington does not see the relationship as ruptured, affecting firms exposed to cross-border market-access uncertainty. The rating is not higher because no tariff change, deal, deadline, or formal negotiating outcome was announced. [1]