Report

From 4 to 5 March 2025, the Honourable Michael MacDonald, Senator, and the Honourable John McKay, co-chairs of the Canadian Section of the Canada-United States Inter-Parliamentary Group (The Group) led a delegation to Washington, D.C. for meetings with members of the U.S. congress. In addition to the co-chairs, the delegation was composed of the honourable senators Robert Black, Andrew Cardozo, Rodger Cuzner (vice-chair) and Marty Deacon (vice-chair), as well as members of Parliament Vance Badawey (vice-chair), Brian Masse (vice-chair), Simon-Pierre Savard-Tremblay (vice-chair), and Irek Kusmierczyk. The delegation was accompanied by Lyla Malow, Secretary, and Marie Dumont and Robert Mason, advisors to the Canadian Section.

THE OBJECTIVES OF THE CANADA-UNITED STATES INTER-PARLIAMENTARY GROUP

The Group aims to find points of convergence in respective national policies, to initiate dialogue on points of divergence, to encourage the exchange of information and to promote better understanding among legislators on shared issues of concern. Members of the Group’s Canadian Section meet regularly with their U.S. federal counterparts; they also attend conferences with U.S. state governors and legislators.

ACTIVITIES DURING THE MISSION TO WASHINGTON, D.C.

The primary purpose of the Canadian Section of the Groups visit to Washington, D.C. was to meet with U.S. senators and members of the House of Representatives. The delegation targeted its outreach to new members of Congress who had not yet engaged with Canadian counterparts. During more than 15 meetings, delegates discussed issues such as the U.S. import tariffs, the importance of energy security for both countries, and opportunities for collaboration during this uncertain period. The delegation encouraged members to join the U.S. Section of the Group, as well as the American-Canadian Economy and Security Caucus, known as the ACES Caucus.

In addition to meeting with members of Congress, members attended a briefing at the Embassy of Canada to the United States, discussed current events with Politico journalists, met with the Canadian American Business Council and participated in a panel discussion at the Canada Institute at the Wilson Center.   

Prior to their first meetings with members of Congress, the delegation was briefed by Kirsten Hillman, Canada’s Ambassador to the United States, at the Embassy of Canada. The meeting occurred on the morning that the Trump administration imposed a 10% tariff on Canadian energy or energy resources and 25% tariffs on other imports from Canada. Members discussed ways to highlight the harms of these tariffs to American consumers, farmers, manufacturers and other businesses.

MEETINGS WITH MEMBERS OF CONGRESS

During meetings with members of Congress, delegates emphasized the following points:

• The scourge of fentanyl is affecting people in both the U.S. and Canada. U.S. data shows that more than 21,000 pounds of fentanyl was seized at the U.S. southern border in fiscal year 2024, whereas 43 pounds were seized at the U.S. northern border, representing 0.2% of the total seizures. Despite being a small overall figure, Canadian efforts have further reduced the amount of fentanyl entering the U.S. in recent months.

• Working closely with U.S. Customs and Border Protection, Canada is continually improving an already secure border, including through a C$1.3 billion investment announced in December 2024 – equivalent to about US$920 million, which is already yielding results, including contributing to an 89% reduction in irregular southbound movement from peak 2024 levels.

• U.S. industries depend on Canadian raw materials. For example, Canada supplies 71% of U.S. total consumption of potash, a key component in producing fertilizers. Since Canada is by far the world’s top producer of potash (followed by Russia, Belarus and China), a tariff on Canadian potash can be expected to impose costs on U.S. farmers and raise grocery prices.

• The U.S. has a trade surplus with Canada with respect to services, and if crude oil is excluded, Canada has a trade deficit with the U.S. with respect to goods.

• The automotive industry is highly integrated between Canada and the U.S. For example, annually, Michigan exports approximately US$15 billion in trucks, motor vehicle parts and automobiles to Canada, while it imports approximately US$27.7 billion in automobiles, motor vehicle parts and trucks from Canada[1]. The Anderson Economic Group estimates that a 25% tariff would raise the cost of a full-size SUV by US$9,000 and a pick-up truck by US$8,000 for U.S. consumers. [2]

Members of Congress discussed several issues with the Canadian delegates, including the following topics.

Tariffs

Members of Congress expressed a range of views on tariffs against Canadian products.

• Several members were acutely aware of the economic harm that these tariffs were already causing in their state or district.

• Among those who supported the Trump administration’s decision to impose tariffs, many acknowledged that at least some Canadian products are essential for U.S. supply chains.

• Some members expressed support for the stated goals of the tariffs – to achieve border security and reduce the amount of fentanyl entering the U.S. – but were concerned about the long-term economic harm that would be caused by the tariffs.

• Several members stated their unequivocal opposition to the tariffs, noting that the U.S. should not impose punishing economic actions on its allies.

Senator Klobuchar informed the delegation of her forthcoming legislation (with senators Kaine and Warner) announced later that day, which would reverse the tariffs if enacted.

Energy Security and Critical Minerals

Members discussed the importance of energy security and critical minerals for the U.S.

• One member expressed support for Canada’s Enbridge Line 5, which transports crude oil in the Great Lakes region. He suggested that Canada should build a pipeline that goes from the West to the East of Canada.

• Several members stated their desire for Canada to be a source of critical minerals for the U.S.

• Members from both parties noted that tariffs on potash, a critical mineral, would have negative implications for the U.S. agricultural sector.

The Canada-U.S. Border

Several members of Congress were aware of recent Canadian efforts to further improve border security and combat fentanyl trafficking.

• Many representatives agreed that Canada’s border with the U.S. is only a miniscule source of fentanyl trafficking and illegal migration compared to the southern border of the U.S.

General Comments

In addition to the above comments by members, some general comments were shared with the delegation.

• One member explained that “America First” means thinking about constituents in your district first, before people in other countries or states

• Some new members expressed disappointment with certain findings since becoming members of the House of Representatives, including that bipartisanship is so rare, and that the amount of misinformation shared by lawmakers is “staggering.”

• Several members shared their views that the Trump administration’s dismantling of diversity, equity and inclusion initiatives would be harmful overall.

• One member highlighted that the Department of Government Efficiency (DOGE), would have a disproportionately negative impact on veterans, considering that they represent 30% of the federal public service.

• One new member observed that throughout his tenure as a representative, he had so far not voted on any bills that would address the cost of living for the American people.

• Some members characterized the current relationship between Canada and the U.S. as similar to a family argument. As both countries work through the current trade issues, one member expressed the hope that the economic damages would be limited.

MEETING WITH THE CANADIAN AMERICAN BUSINESS COUNCIL

The Canadian Section of the IPG met with the Canadian American Business Council to understand issues of importance to the business community. Points of discussion included the following:

• The importance of building economic resilience in Canada in the face of an expected economic contraction resulting from tariffs.

• The cattle and pork industry will be affected by these tariffs, considering that these animals and the products derived from them frequently cross the border for different stages of production.

• Improving regulatory cohesion between Canada and the U.S. is essential.

• WestJet – which is a Canadian company that is a major purchaser of Boeing aircraft, which are made in the U.S. – has seen immediate changes in travel behaviour with an approximately 25 to 30% reduction in Canadian travel to the U.S.

• The deep integration of North American auto manufacturing, including Canada’s contributions to economic stimulus for the auto sector in 2008-2009.

• The short-term and long-term impacts of tariffs on Canadian and U.S. businesses and investment.

PANEL DISCUSSION AT THE WILSON CENTER’S CANADA INSTITUTE

On 5 March 2025, the delegation participated in a public panel discussion hosted by the Wilson Center, entitled Between Two Hills: Canada–US Perspectives in Ottawa and Washington. The event, moderated by Dr. Chris Sands, began with a discussion between the co-chairs of the IPG: from the U.S., the Honourable Amy Klobuchar and the Honourable Bill Huizenga; and from Canada, the Honourable Senator Michael MacDonald and the Honourable John McKay. The event then opened to a roundtable with the rest of the delegation.

The conversation centred around issues relating to economic security, border management, and continental defence, particularly in light of the recently enacted import tariffs, exceptions to which were emerging in real time. 

Canadian delegates were frank in describing a significant realignment in the Canada-U.S. relationship, with some questioning the good faith of the U.S. to negotiate future trade agreements.

CONCLUDING REMARKS

The Canadian Section of the Group visited Washington, D.C. during a critical time for Canada’s relationship with the United States. Delegates informed and reminded U.S. members of Congress about the economic importance of the relationship during a time when both countries face trade and economic uncertainty. As was shared during the panel discussion at the Canada Institute at the Wilson Center, “in the middle of a crisis, it is not a time to build a relationship, it is time to lean on a relationship.”

Travel Expenses

Travel expenses associated with this activity can be found in the delegation’s financial report. This report is available in the Financial Disclosure section of the Parliamentary Diplomacy website.

Respectfully submitted,