Trudeau vows strong retaliation if Trump enacts tariffs
We are keen to maintain good relations with the USA, but the government will protect Canadians should the USA impose a 25% tariff on imports from Canada, stated Prime Minister Justin Trudeau on Tuesday. It is understood that retaliatory tariffs are under consideration, as well as more radical measures if the Trump administration does not back down.
Canadian Prime Minister Justin Trudeau congratulated Donald Trump on Monday on his inauguration as the President of the USA. Alongside remarks about "the most successful economic partnership in the world," there were further declarations in a markedly different tone.
Canada will respond to the USA if Trump imposes high tariffs
Even before the inauguration, Trump announced his intention to impose an additional 25% tariff on goods from Mexico and Canada. On Monday, the new US President confirmed that he is contemplating enforcing these tariffs from 1st February. Trudeau addressed the matter on Tuesday.
He commented on the potential tariffs on Canadian products, claiming that Ottawa's reaction would be "robust, rapid, and measured." Trudeau did not elaborate on what this entails, but he stressed that the objective will be to eliminate these tariffs as swiftly as possible, and to that end, all options are on the table.
Trudeau further noted that the "golden age of America" declared by Trump will require "more steel and aluminium, more critical minerals, more energy supplies from reliable sources, and lower prices." He highlighted that Canada is the source of American imports in these sectors, and alternatives might include nations such as China, Russia, and Venezuela.
Trump threatens tariffs on Canada. Trudeau responds
The Prime Minister indicated that a "dollar-for-dollar tariff" strategy could be considered as retaliation for potential tariffs. He noted that these tariffs would primarily impact American consumers. Media outlets estimated that the proposed Canadian counter-tariffs would target goods valued at approximately £22 billion, with further deliberations on extending tariffs to imports from the USA worth around £65 billion. According to reports by Canada's CBC, additional measures being explored include the possibility of imposing tariffs on or even halting the export of oil to the United States.
Trudeau asserted that Canada's priority is to avoid tariffs and build "positive relations with the United States." Nevertheless, Ottawa does not intend to succumb 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 stand down as Prime Minister once a new leader of the Liberal Party is elected. In terms of responses to potential American tariffs, candidates for his successor – Chrystia Freeland and Mark Carney – stand in support of him.
