Canada’s Prime Minister Justin Trudeau has hit back to US President Donald Trump warning that Canada would respond “robustly” if the US imposed tariffs on Canadian goods.
Trudeau told reporters, “Everything is on the table.” He said that Canada would support its citizens and protect its interests against unfair tariffs.
Trump signed an executive order on Monday, upon being sworn in to office, announcing a 25% tax on goods from Canada and Mexico. This taxis set to begin February 1.
Higher tariffs could raise prices for American consumers.
Trudeau also discussed Trump’s executive action to analyze the US-Mexico-Canada trade agreement (USMCA). This action requires reviewing how the deal affects American workers and whether the US should remain in it. The review will look into stricter US trade policies to control the flow of fentanyl and undocumented migrants.
President Trump wants a golden age for the United States. That can be powered by Canadian resources — or by China, Venezuela, or Russia. pic.twitter.com/5ivbgsAu25
— Justin Trudeau (@JustinTrudeau) January 21, 2025
“While less than 1% of fentanyl and illegal immigrants that enter the United States come from Canada, our government has already acted,” Trudeau said. He noted that Canada has a comprehensive border plan worth over $1 billion to address these concerns. “We’re already working collaboratively to keep our citizens safe on both sides of the border,” he added.
US Needs Canada Too – Trudeau
Trudeau highlighted Canada’s vital role in the US economy: “Canadian energy powers American manufacturing, businesses, and homes.” He pointed out that Canada is the only top trading partner with whom the US has a trade surplus in manufacturing. Canada purchases more American goods than China, Japan, and Germany combined.
He counselled Trump that his vision of a US “golden age” requires more resources, and not less. “Canada has all those resources, and we stand ready to work with the United States.”
He warned that the alternative would mean sourcing resources from less stable countries like Russia, China, or Venezuela.
Imports from Mexico and Canada account for 30% of all US goods. While Trump insists that exporters pay tariffs, US consumers will likely bear some costs too, if he makes good his threat on the new tariffs.
Trudeau is on his way out. On January 6, he announced his resignation when the Liberal Party gets a new leader.
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