World News

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.

Speaking to the Halifax Chamber of Commerce on Dec. 9, Trudeau said tariffs on Canadian imports would raise costs for Canadians and Americans and that Canada would respond as it did to U.S. steel and aluminum tariffs in 2018.

“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.”

Trudeau’s latest remarks came a day after Trump extolled his tariff strategy during an interview with NBC News, noting that Trudeau had visited him at his Mar-a-Lago residence in Florida days after the tariffs were announced.
During the Nov. 29 visit, the two discussed issues such as the fentanyl crisis and trade, though there was no confirmation on whether the tariffs would be lifted. Trump described his trade talks with Trudeau as focused on “fair trade deals that do not jeopardize American workers, and the massive trade deficit the U.S. has with Canada.”
In 2023, Canadian exports to the United States were valued at $593 billion, while U.S. exports to Canada totaled $484 billion.
The Canadian government has said that it’s taking measures to address Trump’s concerns. These include deploying additional drones and helicopters to the border, and looking into sending more personnel to boost border security.

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.



Source link

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.