Former Michigan Republican Party Chairperson Pete Hoekstra gives a thumbs up during a watch party on election night in Novi, Mich., Tuesday, Nov. 5, 2024. THE CANADIAN PRESS/AP-Paul Sancya

By Canadian Press

TRADE WAR

Trump’s envoy choice says Canada is a sovereign state

Mar 13, 2025 | 11:00 AM

U.S. President Donald Trump’s choice for United States ambassador to Canada faced tough questions in his Senate nomination hearing Thursday, as the relationship between the two countries is strained by tariffs and threats of annexation.

“Canada is a sovereign state,” Pete Hoekstra said when asked about Trump’s repeated threats to make the country a U.S. state.

When asked whether a “joke” about annexation is ever appropriate, Hoekstra said he could not comment on the president’s relationship with Prime Minister Justin Trudeau, which was notably rocky during the first Trump administration.

If confirmed, the former Michigan congressman will become the top American diplomat in Ottawa at a fraught time for the U.S.-Canada relationship. Since Trump’s November win, the president has targeted Canada repeatedly through his words and actions.

Trump on Wednesday slapped 25 per cent tariffs on all steel and aluminum imports to the United States, including those from Canada. The week prior, the president sent markets into a tailspin when he started — then partially paused — a trade war with Canada and Mexico.

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Trump has linked some tariffs to the flow of deadly fentanyl but Canadian officials have said the president’s goal is to use economic force to annex Canada.

Hoekstra told the hearing Trump has a series of priorities for Canada, which include freer trade and fighting the flow of fentanyl.

New Hampshire Sen. Jeanne Shaheen pushed back on Hoekstra, saying that the volume of fentanyl coming from Canada is minuscule and noting that Canada has one of the lowest tariff regimes.

Hoekstra later said “it’s not a huge amount” of fentanyl that comes from Canada.

Shaheen’s state borders Canada and she said businesses there were operating according to the rules in the Canada-U.S.-Mexico Agreement, also called CUSMA, which was negotiated by Trump during his first administration.

Shaheen said she’s fielded calls from business owners whose orders from Canada were cancelled as a result of Trump’s tariffs and rhetoric.

Hoekstra was also pressed on reports suggesting Trump’s administration was considering pushing Canada out of the Five Eyes. He said all member countries play important roles in the intelligence-sharing alliance.

Hoekstra also said Canada needs to step up its defence spending to meet the NATO target of two per cent of gross domestic product.

The hearing comes as Canadian officials are set to meet with the U.S. commerce secretary in Washington later Thursday — days after a dust-up with Trump that ended with Ontario pausing its surcharge on electricity exports to the United States.

Finance Minister Dominic LeBlanc, Industry Minister François-Philippe Champagne, Ambassador to the U.S. Kirsten Hillman and Ontario Premier Doug Ford are expected to meet with Howard Lutnick.

Ford has said his goal is to get a coherent sense of the Trump administration’s plans for tariffs. Ford said he expects to talk about continental trade pact and hopes to speed up a mandatory review of CUSMA set for next year.

“I want to find out where their bar is set,” Ford told reporters Wednesday. “Rather than keep moving the goalpost, I want to find out how quickly you want to move forward and see what their requirements are.”

On Tuesday, Trump threatened to double steel and aluminum duties on Canada but backed down after Ford agreed to halt a surcharge on electricity that Ontario sells to three U.S. states.

Trump claimed a win against Ford repeatedly on Wednesday, calling the premier “some guy in Ontario.”

“I said, ‘This will be won in one hour,’ and (we) announced what we were going to do and they withdrew their little threat,” Trump said.

Canada responded to Trump’s steel and aluminum levies with 25 per cent tariffs on $29.8 billion worth of American goods, which took effect just after midnight Thursday.

Those duties focus on American steel and aluminum products but also include other items like smartphones, video game consoles and golf clubs. Spring and summer staples hit with Canadian tariffs include fishing gear and sleeping bags.

Champagne also directed Industry Canada to prioritize investments in projects that mostly use Canadian steel and aluminum.

“Canadian steel and aluminum form the basis of North America’s critical infrastructure and manufacturing base, while supporting vital U.S. industries, including defence, shipbuilding and automotive,” Champagne said in a media statement.

“They are also essential for securing our collective energy future and generate high-quality jobs on both sides of the border.”