U.S. Ambassador Pete Hoekstra says President Donald Trump’s renewed 51st state rhetoric can be taken as a compliment, suggesting that’s how it’s seen by Prime Minister Mark Carney.
In an interview with CBC’s Power & Politics, Hoekstra suggested Carney saw the comments as a “term of endearment,” while clarifying Canada’s leader “didn’t exactly use this word.”
When asked whether Canadians should also see the 51st state talk as a term of endearment, Hoekstra said “they can see it however they want.”
In an interview with Fox News over the weekend, Trump repeated his belief that Canada should be a U.S. state.
“Canada relies entirely on the United States, we don’t rely on Canada,” he said.
Trump’s ambassador in Ottawa says those comments should be taken with consideration to how the two leaders have been getting along since Carney became prime minister.
“President Trump doesn’t invite people onto his team who he doesn’t like, who he doesn’t trust, who he doesn’t respect. You know he wants a strong team,” said Hoesktra in an interview with guest host Catherine Cullen a day before Canada Day.
U.S. Ambassador to Canada Pete Hoekstra says the president’s team had long made it clear that Canada’s digital services tax was a ‘red line,’ and that stopping it took Canada from the ‘back of the line’ for a U.S. trade deal and returned it to the front. Hoekstra claims that Prime Minister Mark Carney characterizes the 51st state comments as ‘a term of endearment.’
The rhetoric resurfaced this weekend as the U.S. briefly ended all trade discussions with Canada over the digital services tax (DST), which would have seen U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay three per cent on revenues from Canadian users.
The policy, with tax collection set to begin Monday, would have applied retroactively, leaving U.S. companies with a $2-billion US bill.
Canada promptly rescinded the DST on Sunday evening, which paved the way for Canada and the U.S. to resume trade negotiations Monday morning. Carney told reporters that the two countries are keeping the previously agreed-upon July 21 deadline in mind during the trade talks.
U.S. press secretary Karoline Leavitt told reporters that Canada had “caved” to Trump in rescinding the tax.
In response to a reporter’s question about trade talks with Canada, White House press secretary Karoline Leavitt said Prime Minister Mark Carney ‘caved’ to U.S. President Donald Trump after the latter said on Friday he was ending discussions because of the digital services tax. The Canadian government announced late Sunday evening it would rescind the tax.
Hoekstra told Power & Politics that “caving” isn’t how he’d describe it, but that Canada knew the DST was a “red line” for the U.S.
The tax caused Canada to “move from the front of the line to the back of the line” in Trump’s negotiations with countries. Canada is now “back at the front of the line,” he said.
The path forward
With the DST eliminated, Trump has other longstanding objections that could become barriers to progress.
Trump repeated his complaints about Canada’s steep tariffs on egg, dairy and poultry imports over the weekend, which he says disadvantages American farmers. Many of the tariff rates he often quotes are rarely, if ever, applied.
Right before breaking for the summer, Parliament passed Bill C-202, which will hamstring the government from making concessions that affect agricultural supply management during trade negotiations.
Hoekstra said he doesn’t see C-202 as a roadblock to a deal.
He said he has a “strong belief” that “the prime minister probably could find a way to get Parliament to do [his] will, just like the president today” to get a deal made.
“Prime ministers and presidents, they’ve got a tremendous amount of power.”
