In a recent statement, Canadian Prime Minister Justin Trudeau expressed his readiness to retaliate if incoming US President Donald Trump follows through on his threats to impose significant tariffs on Canadian imports. Trudeau cautioned that such actions could ignite a major trade conflict between the two neighboring countries, potentially the most severe in decades.
At a meeting of the newly established Canada-US Relations Council, Trudeau emphasized the importance of unity in addressing the challenges posed by Trump’s policies. “No one wants to see US tariffs imposed on our goods. But Canada will be ready with a national response if we need one,” he stated, underscoring the potential economic ramifications of a trade war.
The Canada-US Relations Council, consisting of 18 members from various sectors including the auto industry, labor unions, and agriculture, was formed to strengthen Canada’s strategy in navigating the complexities of its relationship with the US under Trump’s administration. Trudeau highlighted the collaborative effort, saying, “We’ve brought leaders in business, labour, and policy to the table. People from different fields, parties, and parts of the country — all on Team Canada.”
With Canada exporting approximately 75 percent of its goods to the US, the proposed tariffs could have dire consequences for both economies. Trudeau warned that if a “worst-case scenario” trade war unfolds, Canada would not hesitate to implement robust retaliatory measures. “If push comes to shove, we will be strong and unequivocal in our defence of Canada and Canadians,” he affirmed.
Canadian Foreign Minister Mélanie Joly echoed Trudeau’s sentiments, indicating that the government is prepared to impose immediate counter-tariffs. “The Americans would be starting a trade war against us. We are ready to put maximum pressure,” she stated during a press conference in Washington. Joly revealed that Canada has already devised a series of measures, including tariffs linked to imports, to respond swiftly if Trump moves forward with his plans.
Reports suggest that the Trudeau administration is preparing to unveil an initial round of reciprocal tariffs as soon as Trump is inaugurated on January 20. This first wave of counter-tariffs is expected to target approximately $37 billion worth of US goods, with additional measures ready to impact up to $110 billion if necessary. The goal of these countermeasures is to minimize damage to the Canadian economy while illustrating the potential costs of a trade war to the US.
Trump, who is set to return to the White House next week, has made it clear that he intends to impose a 25 percent tariff on Canadian imports as part of a broader economic strategy aimed at key trading partners, including Mexico, China, and India. He has argued that these tariffs are essential for tightening border security and combating the influx of drugs like fentanyl into the United States.
In response to Trump’s claims, Trudeau has dismissed the notion that Canada is a significant source of irregular migrants or fentanyl entering the US, noting that less than 1 percent of such issues originate from Canada. To address US concerns, Ottawa recently announced a C$1.3 billion ($909 million) border security initiative.
As tensions rise over trade relations, both Trudeau and Joly have made it clear that Canada is prepared to defend its interests vigorously. The potential for a trade war looms large, and the coming weeks will be critical in determining the trajectory of Canada-US relations under the new US administration.
