Canada Vows Strong Response if Trump Imposes 25% Tariffs

Canada is reportedly considering higher duties on goods from the United States

Tue Jan 21 2025
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OTTAWA, Canada: Canadian Prime Minister Justin Trudeau on Tuesday vowed a strong response if Donald Trump slaps 25 percent tariffs on Canadian imports, which the US president signalled could come as early as February.

“Canada will respond and everything is on the table,” Trudeau told a news conference, adding that Ottawa’s reaction would be “robust and rapid and measured,” but also match dollar for dollar the US tariffs.

Trudeau said that if Trump wants to usher in a “golden age” for the United States, he’ll need the energy, critical minerals and resources that Canada is ready to provide.

“We are there to be constructive partners,” Trudeau said in his first public comments since Trump suggested he could impose 25 percent tariffs on Canadian imports within days.

The prime minister spoke at a cabinet retreat to strategize how to deal with the new Trump administration and address the economic threats coming from its southern neighbour.

Trump has called for a tightening of its borders with Canada and Mexico to stem the flow of migrants and illicit drugs.

Hours after taking his oath of office on Monday, he told reporters the punitive tariffs against the two major US trading partners may be imposed as early as February 1.

“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,” he said in the Oval Office as he signed an array of executive orders.

Trump also signed an order Monday directing agencies to study a host of trade issues including deficits, unfair practices and currency manipulation.

These could pave the way for further duties.

Approximately 75 percent of Canadian exports go to the United States, led by its energy and auto sectors.

Ottawa is considering higher duties on goods from the United States including steel products, ceramics like toilets and sinks, glassware and orange juice — in a first phase of tariffs that could be extended, AFP reported citing a Canadian government source.

Trudeau on Tuesday warned that a trade war would cost the United States, but also “there will be costs for Canadians.”

One scenario from Scotiabank suggests that it could slash more than five percent from Canadian GDP, increase unemployment significantly and fuel inflation.

Canada’s federal cabinet is meeting in Montebello, Que., for a retreat focused on the Canada-US trade strategy.

While Trump had been threatening to impose punishing tariffs on Canada on his first day in office, he opted instead on inauguration day to announce a plan to study alleged unfair trade practices.

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The president signed an executive order directing that the study be completed by April 1.

Trudeau said Canada has been in this situation before with the first Trump administration.

“There is always going to be a certain amount of unpredictability and rhetoric coming out from this administration,” he said.

Trudeau said his government’s focus is still on avoiding tariffs — but if that effort doesn’t succeed, Canada will respond and “everything is on the table.”

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