Canada's Prime Minister, Justin Trudeau, stated that the country would respond with force if President Donald Trump imposes tariffs. Trump has mentioned a possible 25% tariff on Canadian imports. Trudeau emphasized, It's not what we want, but if he moves forward, we will also act.
Trump's economic strategy includes tariffs to boost the US economy, safeguard jobs, and increase tax revenue, despite warnings from economists about the immediate negative effects on Canada's economy and potential price hikes for Americans.
In a televised address, Trudeau forewarned of challenging times ahead. Canada is endeavoring to avert a trade war and pledged over C$1bn to enhance border security with the US. Trudeau stated that all options are being considered. Trade expert Peter Clark noted that targeted tariffs are preferred initially to minimize repercussions on Canadian citizens.
During a previous tariff conflict with Trump, Canada retaliated by imposing tariffs on specific US goods, sending a political message. With a substantial trade imbalance, Canada faces greater economic risks in a trade dispute with the US. Dollar-for-dollar tariffs might be reintroduced, aiming to match US tariffs on Canadian exports.
In anticipation of potential tariffs, Canada may implement measures like a "Buy Canadian" campaign. Despite differing opinions within Canada on retaliatory strategies, there is a consensus on the need for a calculated response. Energy resources could be a significant bargaining chip, with some suggesting limiting energy exports to the US.
Discussions continue between Canadian and US officials to avoid tariffs. Options include relief programs for affected businesses and diversifying trade relationships. Some propose focusing on domestic production to mitigate the impact of retaliatory measures.