Canada Considers US Submarine Purchase Amid Trade Tensions

Tariff threats from Trump could raise costs for Americans
By Newser.AI Read our AI policy
Posted Jan 17, 2025 7:54 AM CST
Canada Considers US Submarine Purchase Amid Trade Tensions
President-elect Donald Trump speaks during a meeting with Republican governors at Mar-a-Lago, Thursday, Jan. 9, 2025, in Palm Beach, Fla.   (AP Photo/Evan Vucci)

Canada's ambassador to Washington, Kirsten Hillman, indicated readiness to address US-Canada trade concerns under President-elect Donald Trump by increasing purchases from the US, including a new submarine fleet. Hillman warned of the implications if Trump enforces a proposed 25% tariff on Canadian goods, saying it would "raise the price for Americans almost immediately." She emphasized Canada's role as America's largest customer and noted that 70% of the country's military procurement is US-sourced.

"We are happy to source what we can from the United States. And we have some big military procurements coming up for example, replacing our entire submarine fleet," she said. "Maybe those are some purchases that can happen from the US." Hillman reiterated Canada's significant economic contributions, including primary materials pivotal to US manufacturing, and dismissed Trump's rhetoric on Canada becoming a US state as a negotiation tactic. She underscored that response measures would be inevitable if tariffs are imposed, stating, "Canada will respond," and expressed intention to avoid a trade conflict despite the potential strain on Canadian interests.

Hillman also highlighted broader geopolitical concerns, stressing the importance of US-Canada cooperation in counteracting China's influence. She credited Trump with accelerating Canada's border security initiatives. Hillman pointed out Canada's energy resources are vital for the US's advancement in technological sectors like artificial intelligence, emphasizing, "If we are working at odds then frankly China wins." (This story was generated by Newser's AI chatbot. Source: the AP)

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