Canada is prepared to retaliate with counter-tariffs if U.S. President-elect Donald Trump initiates a trade war in North America, outgoing Prime Minister Justin Trudeau warned during a recent interview on MSNBC’s Inside With Jen Psaki.
Trudeau emphasized that while Canada isn’t seeking a trade dispute, his government will take necessary measures if the U.S. imposes tariffs on Canadian goods. “We are not looking for a confrontation, but if the U.S. thickens the border with tariffs, we will respond accordingly. Our economy is deeply intertwined, and any disruption will impact American jobs and businesses,” Trudeau said.
The U.S. Commerce Department reports that Canada is America’s largest export market, purchasing roughly $320 billion in U.S. goods in the first 11 months of last year. Despite this, Trump has floated the idea of imposing a 25% tariff on goods from both Canada and Mexico, raising concerns on both sides of the border.
Trudeau reminded viewers of Canada’s response to Trump’s 2018 tariffs on steel and aluminum, which included countermeasures on U.S.-made products such as household appliances, whiskey, and boats. “We were ready then, and we are ready now,” he noted. Recent reports suggest that Canadian officials have drafted a new retaliation plan that could target a broad range of U.S. imports if new tariffs are introduced.
In the interview, Trudeau also highlighted Canada’s efforts to address U.S. concerns on border security. The Canadian government has invested in additional helicopters, drones, and other security measures to curb the flow of illegal drugs and migrants into the U.S. “Less than 1% of illegal migrants and fentanyl entering the U.S. comes from Canada,” he pointed out. “We’ve made billions of dollars in investments to ensure our borders are secure.”
Trudeau dismissed Trump’s past remarks about making Canada the 51st U.S. state as a distraction from more pressing issues. He also downplayed the impact of such rhetoric on the bilateral relationship.
Meanwhile, Alberta Premier Danielle Smith met with Trump at his Mar-a-Lago residence to stress the importance of the energy partnership between the two countries. Canada supplies more than half of U.S. crude oil imports, primarily from Alberta’s oil sands. Foreign Affairs Minister Mélanie Joly hinted that Canada could consider curbing energy exports if tensions escalate. “Everything is on the table,” Joly stated.
Ontario Premier Doug Ford, who had previously suggested cutting electricity exports to U.S. border states, recently proposed a new energy partnership to boost nuclear power exports to America. Several Canadian provincial leaders are scheduled to visit Washington in February to advocate against potential tariffs and highlight the mutual economic benefits of cross-border trade.
Trudeau’s tenure as prime minister is set to end in March when the Liberal Party elects a new leader. His departure follows internal party pressure and the resignation of Finance Minister Chrystia Freeland, who called for a focus on financial stability amid rising economic uncertainties. Trudeau’s approval rating has dipped below 30%, according to the Angus Reid Institute, fueling speculation of an early national election.
The upcoming leadership contest will determine Canada’s 24th prime minister, with political analysts predicting that economic policies, particularly regarding U.S.-Canada trade relations, will be a dominant campaign issue.
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