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(Bloomberg) — The Canadian economy is too dependent on the US, the country’s industry minister said, as she vowed to protect jobs in its export-focused automotive sector.  

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The government is working on a new industrial strategy that seeks to open new markets for exporters and prioritize domestic procurement in the face of US tariffs, which have hurt steel, aluminum, forestry and automotive companies, Melanie Joly said in an interview aired by Canadian Broadcasting Corp. on Sunday.

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Joly attended meetings at the White House on Oct. 7 between Prime Minister Mark Carney and US President Donald Trump. The meeting produced no lowering of tariffs, but Joly told the CBC that “negotiations are going ahead in the right direction.” 

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During that meeting, Trump said the auto industry is a point of natural tension between the US and Canada because both countries want to make vehicles. Last year, the US exported about 630,000 vehicles to Canada and imported a little more than 1.05 million, according to US Commerce Department data. On auto parts, American factories recorded a large trade surplus with Canada last year.

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On Oct. 8, Commerce Secretary Howard Lutnick told a Toronto conference this week the US administration doesn’t want to see auto manufacturing in Canada. Carney said US carmakers actually need a trade deal across North America to be globally competitive.

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The government “will fight for every single job in the auto sector,” Joly said. “These are our jobs, these are our people and we will make sure we stand with them.”

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Still, there are divisions with Canada over government measures to protect the auto sector, including 100% tariffs on Chinese electric vehicles — which have led to retaliatory tariffs from China that hurt the agriculture industry in western Canada. 

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China’s ambassador suggested that removal of the vehicle tariffs would lead to China scrapping its counter-tariffs on Canadian food products, according to Canada’s CTV News. 

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Manitoba Premier Wab Kinew asked Carney in a letter Saturday to take that offer, and eliminate tariffs on Chinese EVs “in exchange for restoring full access for Canadian agricultural products to the Chinese market.” 

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“While protecting our automotive sector is important, the current approach has created a two-front trade war that disproportionately impacts Western Canada,” Kinew wrote in his letter.

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Anita Anand, Canada’s foreign minister, is about to embark on a swing through Asia that includes China. 

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