The United States is “more than willing” to continue its business relationship with Canada despite ongoing disagreements over tariffs and trade policy, U.S. Ambassador to Canada Pete Hoekstra has said, signalling that Washington does not consider the economic relationship between the two countries to be broken.

Speaking about the state of U.S.-Canada trade relations, Hoekstra rejected the suggestion that the two countries were engaged in a full-scale trade war. He described the situation as negotiations over tariffs and adjustments to existing trade arrangements, adding that Washington does not view the bilateral relationship as having been ruptured, even though Canadian officials may see the situation differently.

Hoekstra emphasised the enormous economic importance of cross-border commerce, describing Canada as one of the United States’ largest trading partners. He said approximately $2.5 billion worth of goods crosses the U.S.-Canada border every day, highlighting the deep economic connections between the neighbouring countries. Any significant disruption to this trade could affect businesses, manufacturers, workers and consumers on both sides of the border.

The ambassador also pointed to the relatively favourable treatment Canadian products have received under previous trade arrangements. According to Hoekstra, around 80% to 85% of products crossing the border continue to move tariff-free, despite recent changes in U.S. trade policy. He suggested that this arrangement remains an important feature of the bilateral economic relationship, although he acknowledged uncertainty over whether Canada still enjoys the same advantages under the latest framework.

Hoekstra said the Trump administration remains prepared to maintain the existing business relationship while it reviews and adjusts its wider international trade policies. He explained that the United States is reconsidering trade arrangements with countries around the world as part of its broader approach to tariffs. Washington is working through the process of establishing new tariff rates and determining how those changes will apply to individual trading partners.

His remarks come amid continuing uncertainty over the future of U.S.-Canada economic cooperation. Tariffs and trade negotiations have become important issues for both governments, particularly because their economies are closely integrated through manufacturing, energy, agriculture and cross-border supply chains.

Hoekstra also noted that Canada is reassessing various aspects of its own policies and economic relationships. He described that process as a Canadian decision, suggesting that Ottawa's approach to future trade arrangements will play a role in shaping the next phase of bilateral negotiations.

Despite the differences between the two governments, the ambassador's comments indicate that Washington is not seeking to abandon its commercial relationship with Canada. Instead, the United States appears willing to continue working within the existing framework while negotiating changes to tariffs and other trade conditions.

However, Hoekstra's statement does not mean that a new trade agreement has been finalised or that all tariff disputes have been resolved. The future direction of the relationship will depend on further negotiations, policy decisions and the ability of both governments to manage their economic differences.

With billions of dollars in goods moving across the border daily, the stakes remain high for businesses and consumers in both countries. Hoekstra's latest remarks offer a sign of continued willingness to cooperate, but uncertainty over tariffs and trade policy is likely to remain a central issue in U.S.-Canada relations.