MNI: Canada Pushed Bessent On Market Drop After Auto Tariff

Canada's finance minister was encouraged by staff to use a call with the U.S. Treasury Secretary the day after 25% auto tariffs took effect to highlight crashing financial markets, according to a briefing document MNI obtained, shifting the emphasis given for much of this year on how the dispute would weaken America's economy. 

Three of the six pages sent to Francois-Philippe Champagne ahead of the April 4 call with Scott Bessent were tables showing drops in stocks and other assets. The tables showed declines since Jan 31 as the U.S. imposed 25% tariffs on Canada, Mexico and China, and markets as of 12:15pm EST on Apr. 3 following a global 10% tariff and 25% tariffs on autos from Canada and Mexico.

The first page of the document laid out suggested speaking points on markets, later elaborating: "Global financial markets have plummeted following Trump's April 2 tariff announcement."

Parts of the memo MNI obtained through a freedom of information request were redacted. What was visible made only one reference to a weaker U.S. economy that cited an OECD projection for slower American growth under a trade scenario drafted before the April 2 global tariff. 

While U.S. stock markets weakened early this year and plunged in early April they have since reached fresh highs even amid new and shifting tariff threats. President Donald Trump denied earlier this year he was still watching market movements as he reviewed tariff policy.

Champagne's spokeswoman Audrey Milette did not respond to a request for comment. 

The market focus was a different approach than Prime Minister Mark Carney's "elbows up" campaign through the April 28 election focused on developing an economy less reliant on the United States and suggesting tariffs would backfire by hurting American economic prospects. For example, Champagne told reporters March 27 that auto tariffs were “going to do two things, it’s going to bring the prices up for U.S. consumers, and it’s going to bring competitiveness down for U.S. industries.” (See MNI: Canada Approved CAD95B Geopolitical Contingency Borrowing)