Canadian Prime Minister Justin Trudeau issued a strong warning on Tuesday, promising a firm response if US President Donald Trump follows through with plans to impose 25% tariffs on Canadian imports, which Trump indicated could begin as soon as February.
During a news conference, Trudeau assured that Canada’s reaction would be swift, strong, and proportional. “Canada will respond, and everything is on the table,” he said. “Our response will be robust and measured, and we will match the tariffs dollar for dollar.”
The prime minister’s remarks came during a cabinet retreat focused on how to navigate the challenges posed by the new Trump administration and its potential economic policies. One of Trump’s primary objectives has been tightening borders with Canada and Mexico to curb the flow of migrants and illicit drugs.
Just hours after his inauguration on Monday, Trump told reporters in the Oval Office that he was considering imposing punitive tariffs on Canada and Mexico, starting as early as February 1. “We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people—Canada’s a very bad abuser also—to come in, and fentanyl to come in,” Trump remarked while signing a series of executive orders.
In addition to the tariffs, Trump signed an order directing agencies to examine various trade concerns, including deficits, unfair practices, and currency manipulation. These measures could set the stage for further trade restrictions.
Canada, which exports about 75% of its goods to the United States—especially in the energy and auto sectors—could be significantly impacted. A Canadian government source revealed that Ottawa is considering higher tariffs on a range of US goods, including steel, ceramics like toilets and sinks, glassware, and even orange juice, with the potential for more tariffs to follow.
Trudeau cautioned that a trade war would have negative repercussions not only for Canada but for the United States as well. According to Scotiabank, such a conflict could reduce Canada’s GDP by more than 5%, increase unemployment, and drive inflation.
