Chrystia Freeland negotiated with Trump. Now she's watching a trade war unfold

Chrystia Freeland understands the U.S.-Canada relationship from her time at the negotiating table. Here's what she sees now. iframe src="https://www.npr.org/player/embed/nx-s1-5955613/nx-s1-9917493" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player"> Former Canadian Finance Minister Chrystia Freeland speaks at the Peterson Institute for International Economics in Washington on April 12, 2023. Canada's latest tariffs on American goods took effect Tuesday. It's another escalation in a trade war that is raising costs and testing a relationship that, until recently, was among the closest in the world. Prime Minister Mark Carney's government imposed tariffs of up to 50% on about $20 billion worth of U.S. goods in response to U.S. tariffs on Canadian products. The latest measures match U.S. tariffs dollar for dollar, though not product for product.by a longtime ally. President Trump has repeatedly suggested Canada should become the 51st state and has said he would use economic pressure, rather than military force, to make that happen. Canadians have cut back on travel to the United States and boycotted American goods as tensions have grown. And the economic ties are hard to untangle. U.S. auto exports to Canada have fallen 22% since the trade dispute began. Canada is the largest customer for 26 U.S. states and a top-three customer for 45. Chrystia Freeland understands the relationship from her time at the negotiating table. The former Canadian deputy prime minister and finance minister helped negotiate the U.S.-Mexico-Canada Agreement during Trump's first term. Trump once called it"the best trade deal ever. ""If Americans are concerned about China in the world, which I am, the best way to act on China is with an alliance with America's traditional allies," Freeland told NPR's"But it has to start with stopping punching your friends in the face, which is what Washington is doing right now. " Freeland also pushed back on the idea that Canada's much smaller economy means it ultimately has to give in. She recalled a small meeting during an earlier round of North American trade negotiations when, she said, she was told the United States was 10 times bigger than Canada and therefore"should get our way 10 times more than you. "Listen to the full interview by clicking the blue play button above. Peter Armstrong contributed reporting from Toronto. Anyone who makes such an offer or request is not an NPR employee and does not represent NPR.