Hoekstra urges Canada to align with U.S. on space despite tariffs

U.S. Ambassador Pete Hoekstra urged Canada Oct. 20 in Gatineau, Quebec to remain aligned with the United States on space industry opportunities despite new tariffs, saying Washington does not consider the relationship a trade war.

SpaceQ Media Inc. reported the remarks Oct. 21, after Hoekstra spoke at Space Canada’s SpaceBound conference for industry in Gatineau, Quebec. The appearance included his assessment of U.S.-Canada trade relations and comments on defence, Greenland, and European space cooperation. Hoekstra tied bilateral trade relations to long-term space-sector cooperation, framing alignment as preserving opportunities over the coming decades even as new tariffs were imposed.

On Aug. 22, the United States announced 50% tariffs on $20 billion US of Canadian goods, and SpaceQ Media Inc. said none of those tariffs affect the space sector. The tariff announcement prompted Prime Minister Mark Carney to suspend negotiations with the United States that same day. Hoekstra’s remarks at SpaceBound addressed the fallout from those tariffs while arguing the space sector remains exempt.

Prime Minister Mark Carney suspended negotiations with the United States on Aug. 22 after objecting to proposed American terms as uneconomic, unfair and harmful to Canada’s net benefits. The suspension followed the U.S. tariff announcement on $20 billion US of Canadian goods. Hoekstra later discussed the countertariffs and trade relationship in his SpaceBound remarks.

Washington has not accepted Canada’s announced countertariffs on $28 billion of goods. Hoekstra spoke about the countertariffs at length during his appearance. The White House’s non-agreement sits alongside its position that no trade war exists.

Hoekstra said 80% to 85% of products crossing the border remain tariff-free, calling the current situation not a bad place to be. He intended the remark to reduce the perception of a rupture despite the new tariffs.

Hoekstra said cooperation between the two countries on space has persisted across industry and human spaceflight. He paid tribute to continuing collaboration early in his SpaceBound appearance. The continuation occurs despite the tariff dispute and trade tensions.

Hoekstra noted that two Canadian astronauts reached space this year aboard American rockets. The observation was part of Hoekstra’s tribute to human spaceflight collaboration. He framed it as evidence of the ongoing U.S.-Canada space relationship.

Hoekstra described the American space vision as broad, covering environmental work, moon missions, deep-space exploration and converting basic research into business opportunities. He presented the vision as having worth for both sides of the border. The comments were part of his broader pitch for continued alignment.

Hoekstra said Canada has increased defence spending, including for space, as defence becomes a global priority for many countries. He tied this surge in spending to White House interest in Greenland. He presented Canadian sovereign-space activity as a factor in American strategic calculations.

Hoekstra characterized Canada-U.S. ties as strong on NORAD and solid on NATO, and said the United States wanted Canada to reach the 2% target sooner than it did this past year. He said he would like collaboration to continue, while the White House turns to Greenland in the meantime. The 2% remark refers to defence-spending expectations.

Hoekstra linked Canadian sovereign-space activity to White House interest in Greenland over recent months. He framed Canadian actions in the space and defence domain as part of the reason for Washington’s focus on Greenland. The linkage connects northern defence to broader bilateral cooperation.

The White House finalized a Denmark security agreement last month after 18 months of Greenland acquisition discussions and announced plans for two new military bases in Greenland. Hoekstra said more military presence in Greenland answers the U.S. question of how to build out and access physical and geographic spaces needed for defence. He presented the move as a fallback if Canada does not cooperate on northern defence.

Hoekstra said the United States must protect itself from the north, is waiting to see where Canada wants to go, and has not stood still for a year and a half, noting NORAD provided that protection for 50 or 60 years. He said Washington would love to continue the arrangement with Canada but is not waiting indefinitely. The statement underpins his push for Canadian alignment on defence and space.

The White House is unclear whether Canada will contribute to Golden Dome, which Hoekstra called crucial for protection from the north. He said Canada’s absence would force geographic decisions and that the pact is not ideal because of the gap between Alaska and Greenland. Hoekstra framed Golden Dome as central to protecting the United States from northern approaches, and he said the geographic gap makes the pact suboptimal without Canadian participation.

The White House is monitoring Canada’s effort to deepen ties with the European Space Agency, which Hoekstra portrayed as a move away from relying on SpaceX or closing the market to SpaceX. Hoekstra said he was not clear on the meaning of Canada’s European outreach. He connected it to broader Canadian diversification away from U.S. space providers.

The Globe and Mail reported that Canada’s prime minister recently told the New York Times that Canada seeks to diversify away from SpaceX’s Starlink. SpaceQ Media Inc. attributes this report to The Globe and Mail, not to Hoekstra directly. The detail appears in the section discussing Hoekstra’s views on Canada’s European ties and SpaceX.

European procurement aims to put sovereign satellites ahead of foreign ones, and regulators may approve a planned merger of Leonardo, Airbus and Thales that could form a SpaceX rival nicknamed Project Bromo. Hoekstra may have alluded to these European decisions when discussing Canada’s tilt toward Europe. The merger presents a potential competitor to SpaceX.

Hoekstra said Canada’s decision to move away from SpaceX is helpful to the U.S. government and that Elon Musk will likely find other business partners. He framed the shift as Canada choosing not to partner with the United States on space investment and innovation. He suggested Musk already has alternative partners.

Hoekstra said the White House plans according to whatever Canada decides for its economic and national security future, and that senior U.S. leadership believes the partnership has succeeded and will continue. He presented American planning as responsive to Canadian sovereignty. The statement closes his argument that the bilateral relationship remains fundamentally sound.

Canada has been working to diversify trade with other countries in recent months, and Hoekstra called the idea not new but warned some markets are harder to enter than the United States. He suggested Canada might find success in the European Union but warned the market is difficult. He also said businesses that prefer China should operate there.

Hoekstra said doing business in the European Union is difficult based on his three years there helping American firms, though Canada might crack the code. He drew on personal experience living in the E.U. to caution Canadian exporters. The remark came in his section on trade diversification.

Hoekstra said if Canadian businesses believe China is a better partner than the United States, they should go there and drive their business. The remark was part of his broader warning that alternative markets may be more difficult. He positioned the United States as an open market by comparison.

Hoekstra described the Canada-U.S. economic relationship as strong over the last five or six decades and said Washington is not trying to break it. He pitched American partnership as offering success over the next 10 to 20 years, saying the partnership has delivered benefits over 50, 60 or 70 years. He framed the message as one under attack in Canada that deserves serious consideration.