Canadian Prime Minister Justin Trudeau has promised a strong response if US President Donald Trump moves forward with a proposed 25% tariff on Canadian imports, which Trump has hinted may take effect as early as February.
“Canada will respond and everything is on the table,” Trudeau said during a news conference at a cabinet retreat aimed at addressing economic threats posed by the new Trump administration. He described Canada’s potential reaction as “robust and rapid and measured,” promising a dollar-for-dollar retaliation.
Trump, who has advocated for tougher border restrictions with Canada and Mexico to curb migration and drug trafficking, mentioned the tariffs at an Oval Office briefing on Monday, just hours after his inauguration.
“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in,” Trump said as he signed a series of executive orders.
He also asked government agencies to investigate trade issues like as deficits, unfair practices, and currency manipulation, which could create the framework for new levies.
With about 75% of Canadian exports flowing to the United States, dominated by the energy and car sectors, possible tariffs might have a huge impact on Canada’s economy.
A Canadian government source told AFP that Ottawa is mulling retaliation duties on U.S. commodities such as steel, ceramics, glassware, and orange juice, with a first phase that could be expanded.
Trudeau highlighted the potential impact on both countries, stating, “A trade war would cost the United States, but there will also be costs for Canadians.” Scotiabank believes that such tariffs may reduce Canada’s GDP by more than 5%, dramatically raise unemployment, and fuel inflation.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli
