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New Jersey Governor Phil Murphy says ‘existentially important’ U.S. election carries trade consequences

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New Jersey Governor Phil Murphy’s tour is focused on expanding economic ties with Canada, which he noted is far and away his state’s No. 1 trading partner.Eduardo Munoz Alvarez/The Associated Press

The Governor of New Jersey, who is on a brief trade visit to Canada, says it clearly matters who is the president of the United States when it comes to the future of the trading relationship between Canada and the U.S., describing his country’s coming election as existential.

Phil Murphy’s tour includes stops in Ottawa, Toronto and Montreal and is focused on expanding economic ties with Canada, which he noted is far and away New Jersey’s No. 1 trading partner.

In an interview with The Globe and Mail, the two-term Democratic Governor said Democratic candidate Kamala Harris and Republican candidate Donald Trump are presenting very different plans in terms of how they would approach trade issues as president.

“It does matter who’s in the White House,” Mr. Murphy said Saturday. “You hear a lot, particularly on the Trump side of things, on tariffs, and I personally think those are bad for the home team and ultimately contribute to inflation.”

He said it is not yet clear what will happen when the United States-Mexico-Canada Agreement is up for renewal on July 1, 2026. The free-trade agreement’s renewal clause was a controversial item included at the request of the Americans during the prolonged talks that dominated the Canada-U.S. relationship during Mr. Trump’s term as president from 2017 to 2021.

Mr. Murphy said that, during discussions about the future of the USMCA, he would like to ensure it includes strong labour protections.

During the Trump presidency, Prime Minister Justin Trudeau’s Liberal government worked with premiers of all political stripes as they reached out to their U.S. counterparts to stress the importance of maintaining strong trade relations.

Canadian business groups have been urging the country’s officials at all levels to also take the coming renewal seriously and make similar efforts to reach out to American officials at all levels.

On the sidelines of a cabinet retreat last month, Canada’s ambassador to Washington, Kirsten Hillman, played down the potential impact of the U.S. election on the bilateral relationship.

“I don’t think we have any reason to be concerned under, to be frank, either administration,” Ms. Hillman told reporters.

Mr. Murphy, who is a former chair of the National Governor’s Association and current chair of the Democratic Governors Association, on Sunday met with Ontario Premier Doug Ford. They announced a new memorandum of understanding that pledges to boost trade and cooperation in areas including energy, artificial intelligence, fintech and digital health. Mr. Murphy also met with federal International Trade Minister Mary Ng in Toronto.

As a prominent voice for the Democratic party, the Governor is in campaign mode ahead of the Nov. 5 election – which he calls “existentially important” – and Tuesday’s high-stakes television debate between Ms. Harris and Mr. Trump.

“This is incredibly important for America, first and foremost, but for the world and especially our closest allies. And we have no ally closer than Canada,” Mr. Murphy said.

“So there’s just no question, if you look at shared values, interests, what a constructive future looks like, and the relationship between Canada and the U.S., this election matters a whole lot. It’s certainly too close to call right now.”

John Dickerman, the Washington-based policy advisor for the Business Council of Canada, said strong ties between governors and premiers are incredibly important to preserving the bilateral trading relationship.

He also said that Ms. Harris and Mr. Trump both have the potential to be challenging as president, given that their parties have signalled an interest in renegotiating the trade deal in 2026 rather than simply reauthorizing it.

“I think some of the challenging rhetoric around tariffs could make a discussion around reauthorization slightly more challenging under a Trump administration, but there’s no clear indication about who’s going to be subject to those tariffs and who will be excluded from them,” he said in an interview.

Part of Mr. Murphy’s focus during the trip to Canada is to promote his state’s film and television sector. The state organized a reception Sunday at the Toronto International Film Festival, where a behind-the-scenes documentary of New Jersey musician Bruce Springsteen will premiere.

“Bruce himself will be there, which is pretty cool, and it should be a great night,” Mr. Murphy said ahead of the event.

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Publish date : 2024-09-07 13:00:00

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