Ottawa [Canada]: Prime Minister Justin Trudeau has warned that Canada will respond decisively if US President Donald Trump proceeds with his plan to impose tariffs. Trudeau stated that Ottawa is prepared to inflict “economic pain on the US to get Trump to back down,” as reported by CBC News.
Trudeau promised “robust, rapid,” and “very strong” retaliatory measures. This declaration followed Trump’s announcement of a 25% tariff on imports from Mexico and Canada starting February 1. “We are thinking in terms of 25 per cent on Mexico and Canada because they’re allowing vast numbers of people … to come in, and fentanyl to come in,” Trump said. When pressed for a timeline, he added, “I think we’ll do it February 1.”
Speaking at a special cabinet meeting in Montebello, Quebec, Trudeau addressed the volatility of Trump’s policies. “I’ve come to expect a great deal of ‘uncertainty’ when dealing with this president,” he remarked. Acknowledging Trump’s negotiating prowess, Trudeau emphasized that Canada is equally adept, reiterating its readiness to impose economic consequences if necessary.
Trudeau stressed that Canada’s primary goal is to avoid the proposed tariffs while maintaining “a very positive relationship with the US.” However, he made it clear that Canada would not yield to threats.
Despite Trump’s assertions that he doesn’t need anything from Canada, Trudeau pointed out the importance of Canadian natural resources such as oil, lumber, steel, aluminum, and critical minerals in achieving Trump’s vision of a “golden age of America.” Trudeau argued this dependence gives Canada leverage in negotiations.
On Monday, Trump refrained from issuing an executive order to impose tariffs immediately but suggested the 25% tariff could take effect within two weeks. Additionally, he signed a new “America First” trade policy, directing officials to analyze unlawful migration and fentanyl flows from Canada and other countries, with recommendations expected by April 1.
During the final days of the 2024 presidential campaign, Trump threatened a 25% tariff on all imports from Mexico unless migration at the southern border was curtailed. He also hinted at tariffs on imports from Canada and China.
While Trump claims tariffs would financially benefit the US, experts have warned they could act as a tax on consumers, exacerbating economic challenges.