Canadian Prime Minister, Justin Trudeau Promises Strong Response If U.S. Imposes Tariffs
Canadian Prime Minister Justin Trudeau has pledged a strong response if U.S. President Donald Trump proceeds with a proposed 25% tariff on Canadian imports, which Trump has indicated could take effect as soon as February.
Trudeau, speaking at a news conference during a cabinet retreat aimed at addressing economic threats from the new U.S. administration, assured that Canada would retaliate “robustly, rapidly, and in a measured way.” He emphasized that “everything is on the table,” including dollar-for-dollar retaliation.
The proposed tariffs come after Trump suggested stricter border controls with Canada and Mexico in an effort to curb migration and drug trafficking. During an Oval Office briefing on January 20, Trump stated, “We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people—and fentanyl—to come in.” He also ordered federal agencies to investigate trade issues, including deficits and currency manipulation, signaling the potential for further duties.
Given that around 75% of Canadian exports go to the U.S., with the energy and auto sectors being the primary contributors, the tariffs could significantly harm Canada’s economy.
A Canadian government source revealed to AFP that Ottawa is considering retaliatory tariffs on U.S. goods, such as steel products, ceramics, glassware, and orange juice, with an initial phase that could expand if necessary.
While acknowledging the potential damage, Trudeau warned, “A trade war would cost the United States, but also there will be costs for Canadians.” Scotiabank estimates that such tariffs could reduce Canada’s GDP by over five percent, increase unemployment, and fuel inflation.
