Trump’s ultimate goal is discouraging business investment outside the U.S., Freeland says

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The threat of tariffs against U.S. trading partners sends a message to potential investors that they could be better off locating their investment inside the U.S. market

Donald Trump’s tariff threats are ultimately about discouraging business investment in Canada and other countries outside the United States, Deputy Prime Minister Chrystia Freeland says, and Ottawa plans to fight this in an effort to attract capital.

“We have to be candid about the reality of the incoming U.S. administration.,” Ms. Freeland said Friday of the team behind Mr. Trump, who takes office Jan. 20 and has also threatened 100-per-cent tariffs on products from the nine BRICS countries that include Brazil, Russia, India and China. “We’re realistic. We recognize that that is the case,” Ms. Freeland said. “And what we’re saying today, and I’ll have more to say about this in the fall economic statement on Monday, is Canada is going to fight for Canada. Our government is fighting for Canadian jobs. Our government is fighting for capital.”

Alberta Premier Danielle Smith has said that an export tax would be crushing and “a breaking point” for her province. Ontario’s Mr. Ford told reporters in Toronto on Friday that he was encouraged by reported comments that Mr. Trump made on Thursday in New York after the president-elect talked to CNBC. According to Associated Press, the CNBC reporter said that off camera Mr. Trump said he hoped they can work something out with Canada.

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