Trudeau warns of Canadian response to potential US tariffs, pointing to previous actions
Prime Minister Justin Trudeau says Canada will respond to any tariffs incoming U.S. President Donald Trump might impose on Canadian goods, citing previous retaliatory measures that contributed to the removal of U.S. tariffs on Canada five years ago.
“Let’s not kid ourselves in any way, shape or form. Twenty-five percent tariffs on everything going to the United States would be devastating for the Canadian economy,” he said.
“We’re still looking at the right ways to respond, but our responses to the unfair steel and aluminum tariffs were what ended up lifting those tariffs last time.”
Canada imposed retaliatory tariffs in 2018 after then-U.S. President Donald Trump introduced a 25 percent tariff on Canadian steel and a 10 percent tariff on Canadian aluminum. Canada’s response included tariffs of up to $16.6 billion on steel, aluminum, and several other products from the United States. The tariffs were lifted on both sides in 2019 after the two countries reached an agreement.
Trump has pledged to impose a 25 percent tariff on all products from Canada and Mexico when he takes office in January 2025, unless the two countries address the flow of illegal immigration and drugs across their borders.
“We know a few things about Donald Trump,” said Trudeau in Halifax. “We know that when he says these things, he means them.”
During his Dec. 9 address, Trudeau also said Trump got elected on a commitment to make life more affordable for Americans, and that tariffs on Canadian goods would do the opposite. “People south of the border are beginning to wake up to the reality that tariffs on everything from Canada would make life a lot more expensive for Americans,” he said.
Trudeau said Canada should not panic about Trump’s tariffs plans.
“Knowing that yes, these [tariffs] would be absolutely devastating, means we have to take them seriously, but it does mean we have to be thoughtful and strategic,” he said.
Trump has also said that he will open the trilateral free trade deal between the United States, Canada, and Mexico for renegotiation. During Trump’s first tenure as president when the three countries negotiated the deal, known as the United States–Mexico–Canada Agreement (CUSMA), Canada had to make some concessions and reduce barriers to American dairy producers.