Canada poised for swift response if Trump enacts tariffs
We aim to maintain good relations with the USA. Still, the government will protect Canadians if the USA imposes a 25% tariff on imports from Canada, declared Prime Minister Justin Trudeau on Tuesday. It is known that retaliatory tariffs, along with more radical measures, are on the country's list if the Trump administration does not relent.
Canadian Prime Minister Justin Trudeau congratulated Donald Trump on Monday on his inauguration as the President of the USA. Amidst words about "the most successful economic partnership in the world," there were further declarations in a distinctly different tone.
Canada will respond to the USA if Trump imposes high tariffs
Even before the inauguration, Trump announced he would impose an additional 25% tariff on goods from Mexico and Canada. On Monday, the new US President confirmed that he is considering implementing these tariffs as early as February 1st. Trudeau addressed this issue on Tuesday.
Regarding potential tariffs on products from Canada, Trudeau noted that Ottawa's reaction would be "robust and rapid and measured." He did not elaborate on what he meant. However, he emphasized that "the goal will be to eliminate these tariffs as quickly as possible, and to that end, everything is on the table."
Trudeau said that the "golden age of America" announced by Trump will require "more steel and aluminum, more critical minerals, more energy supplies from reliable sources, and cheaper prices." He emphasized that Canada is the primary source of American imports in these areas, and countries like China, Russia, and Venezuela could be alternatives.
Trump threatens tariffs on Canada. Trudeau responds
The Canadian Prime Minister suggested responding to potential tariffs with a "dollar-for-dollar tariff" approach, emphasizing that the cost of these tariffs would fall on American consumers. Media outlets estimated that the retaliatory Canadian tariffs would target goods valued at 36 billion Canadian dollars, with an additional list considering tariffs on U.S. imports worth 106 billion Canadian dollars. According to the Canadian broadcaster CBC, other potential measures include the introduction of tariffs or even a complete ban on oil exports to the United States.
Trudeau said that Canada's priority is to completely avoid tariffs and build "positive relations with the United States." Nevertheless, Ottawa does not intend to yield to Trump's threats. "I support the principle of dollar-for-dollar matching tariffs. It’s something that we are absolutely going to be looking at if that is how they move forward," added Trudeau.
Trudeau announced at the beginning of January that he will step down as Prime Minister after a new leader of the Liberal Party is elected. In terms of reacting to potential American tariffs, candidates for his successor – Chrystia Freeland and Mark Carney – support him.
