Mr. Speaker, before I begin my speech, I want to thank the hon. member for Vaughan—Woodbridge for sharing his time. With his background in economics and finance, he always does amazing work when it comes to issues like the one before us.
I rise today to address a critical issue that may have a significant impact on our economy, our workers and our relationship with our largest trading partner. On the heels of President-elect Trump's announcement that the United States will potentially impose a 25% tariff on Canadian imports, it is essential that we as elected representatives respond with clarity and a commitment to protect the interests of Canadians.
Canada and the United States share one of the most successful and interdependent trading relationships in the world. Our economies are deeply connected, with billions of dollars in trade crossing our borders annually, supporting millions of jobs in both our countries.
We are not just trade partners; we are also neighbours and allies. From the steel used in American manufacturing to the agricultural products that sustain both of our populations, Canada has been a reliable supplier and a trusted partner. Any disruption to this relationship jeopardizes the prosperity of both nations.
The announcement of a 25% tariff has the potential to shift our entire economic landscape, which will have massive consequences for Canadian businesses, workers and their families. Our industries, particularly in manufacturing, agriculture and energy, will face higher costs, reduced competitiveness and the potential loss of vital export markets.
When we consider the automobile sector, in which the United States imports over 80% of the vehicles manufactured in Canada, a 25% tariff would increase costs for automakers and consumers alike, strain supply chains and put thousands of Canadian jobs at risk. Similarly, agriculture producers will struggle to compete in a U.S. market, potentially leading to reduced income and financial instability for farming communities throughout our country.
The effects will extend beyond individual sectors. Small businesses reliant on trade with the U.S. will face uncertainty and potential closure. Consumers will bear the burden of rising prices for goods. The economic ties that have long been the foundation of our relationship with the United States will be tested in exceptional ways.
Canada has navigated past challenges in its trading relationship with the United States. The negotiations of the Canada-United States-Mexico Agreement is a testament to our ability to stand firm and secure outcomes that protect Canadian interests. During those negotiations, we faced pressure from the U.S. administration, including threats of steep tariffs on key Canadian exports like steel and aluminum.
However, Canada did not falter. Under the leadership of a skilled and determined negotiating team, we advanced our priorities and also safeguarded our key industries. We achieved crucial wins, including maintaining dispute resolution mechanisms, preserving cultural exemptions and securing access to critical markets for our farmers and manufacturers.
The CUSMA negotiations demonstrated Canada's strength and resilience and our commitment to protecting the livelihood of our workers while ensuring fairness in trade. We proved that, even in the face of a challenging partner, we could achieve outcomes that benefit both nations. Those experiences will provide valuable lessons as we confront this latest challenge.
We must also address the principle at the heart of the issue: fair and mutual trade. Canada has always advocated for a trade system based on mutual benefit, fairness and the rule of law. One-sided tariffs undermine these principles, creating a landscape of uncertainty rather than co-operation.
President-elect Trump's decision appears to be driven by a protectionist agenda, yet it fails to consider the implications for economic stability across North America. Protectionism can often lead to retaliation and trade wars, which leaves all parties worse off. It is important that Canada stand firm in opposing this approach by remaining committed to constructive dialogue.
In the face of this challenge, we must prioritize the protection of Canadian industries and workers. This means providing targeted support to sectors most affected by the tariffs, whether through financial assistance, tax relief or measures to diversify export markets. Our goal should be to ensure that no Canadian loses their job because of another country's trade policies.
Canada must work with international partners to uphold the rules-based global trading system. The World Trade Organization provides mechanisms for addressing trade issues, and Canada must use every tool possible to challenge the legality of the tariffs.
We must also engage in strategic and measured diplomacy with the United States. It is crucial to convey the message that the tariffs harm both nations and undermine decades of economic partnership. Canada must be clear that while we are open to negotiations, we will not be bullied into agreements that compromise our economic sovereignty.
Finally, this is an opportunity to invest in our economic resilience. By enhancing trade relationships with other global partners and fostering innovation at home, Canada can reduce its reliance on the U.S. market and ensure long-term economic stability.
As parliamentarians, it is our duty to rise above partisanship and present a united front in the face of this challenge. We must take a team Canada approach. The stakes are too high for division. Our response must reflect the strength and determination of Canadians. This is not about tariffs; it is about defending our values, our economy and our future. It is about showing the world that Canada will not stand down when faced with difficulties.
I call on Parliament to stand with Canadian workers and businesses to defend our trade interests and to reaffirm our commitment to a fair and prosperous global economy. Let us take this challenge as an opportunity to strengthen our nation.