Outgoing Canadian Prime Minister Justin Trudeau criticized US President Donald Trump’s proposal to impose a 25 percent tariff on Canadian imports, warning that such actions could harm economic relations and hinder Trump’s plans to usher in a “golden age” for the United States.
On his inauguration day, Trump announced plans to implement tariffs on imports from Canada and Mexico starting February 1. The proposal, which Trump linked to concerns over border security on both the northern and southern borders, has raised alarm in Canada.
“Our focus is remaining calm, remaining strong and responding as necessary to actions by the U.S.,” Trudeau told reporters on Tuesday. “Our response will be robust, and rapid, and measured, and very strong.”
According to the Wall Street Journal, Canadian officials were initially relieved when Trump did not impose tariffs immediately upon taking office. However, his subsequent remarks sparked concerns. Canada is one of the United States’ largest trading partners, with nearly $1 trillion in annual two-way trade. Approximately 75 percent of Canadian exports are to the US, and Canada accounts for about half of all crude oil imported into the US.
In response to Trump’s tariffs threat, Canadian officials are considering retaliatory measures, including tariffs on up to $150 billion worth of US goods. Trudeau ackndowledged that tariffs on US goods would hurt his country’s consumers and businesses, and suggested his government might provide financial support and potentially implement a dollar-for-dollar tariff response.
“Trump is, as always, a skilled negotiator and will do what he can to keep his negotiating partners a little bit off balance,” Trudeau said.
“President Trump said that he wants to usher in a golden age for the United States. That will require more steel and aluminum, more critical minerals, more reliable and affordable energy, more of every resource to run the U.S. economy full steam ahead,” he added. “Canada has all those resources, and we stand at the ready to work with the United States.”
Although Trump has not yet signed an order to enact the tariffs, on Monday he signed an executive order to direct federal agencies to evaluate trade policies with Canada, Mexico, and China. The agencies are expected to submit their findings by April 1. He also directed investigations into trade deficits and potential remedies.
Canada has already taken steps to address US concerns regarding border security amid threats of tariffs. Last month, the Canadian government proposed a $1.3 billion budget for border security enhancements, as Trump has repeatedly voiced concerns regarding drug trafficking and illegal migration entering the country through the northern border.
