Trudeau Warns of Potential Retaliation Against US Tariffs as Trump’s Inauguration Approaches

Prime Minister Justin Trudeau of Canada has stated that the country will not hesitate to respond to tariffs imposed by the United States, just days prior to President-elect Donald Trump’s inauguration.

During a meeting of the Council on Canada-U.S. Relations in Toronto on Jan. 17, Trudeau emphasized, “We will not hesitate to act. We will respond and, I will say it again, everything is on the table.”

Trump’s threat to impose 25 percent tariffs on Canadian and Mexican exports unless action is taken on issues such as illegal drug smuggling and immigration has led Ottawa to enhance border security with a $1.3 billion plan. However, Trump continues to threaten “substantial” tariffs on Canada.

Trudeau expressed Canada’s desire to avoid tariffs but emphasized the need to respond appropriately to show that a trade fight benefits no one. He assured that if any region or industry in Canada faced increased burdens, the government would provide financial support.

Foreign Affairs Minister Mélanie Joly announced that an estimated $150 billion revenue from reciprocal tariffs on the U.S. would be used to support Canadians, with each individual earning less than $150,000 per year receiving about $2,700 from these funds.

Joly remains focused on preventing the U.S. from imposing tariffs on Canada, engaging with provinces, Canadian businesses, and senior Republican senators. She highlighted concerns raised by Senators Lindsey Graham, John Thune, and Jim Risch about the negative impacts of tariffs.

The potential impact of U.S. tariffs on Canada’s GDP and job market was discussed without specific details, but it was indicated as potentially devastating. The Canadian Chamber of Commerce estimated that 25 percent tariffs could shrink Canada’s economy by 2.6 percent and affect 2.3 million jobs, with Ontario Premier Doug Ford warning of job losses in his province as well.

Energy and Natural Resources Minister Jonathan Wilkinson raised concerns in Washington about the lack of clarity on Trump’s tariff plan among Republican senators and congress members. The Canadian government has suggested reducing oil and gas exports to the U.S. in response to the tariffs, but Alberta Premier Danielle Smith opposes this idea due to the significant oil exports from her province.

This report includes contributions from The Canadian Press.