‘Ready to respond’ if Donald Trump imposes sweeping tariffs from Feb 1, says Canada
In response to President Trump's potential 25% tariffs on Canada and Mexico starting February 1, Canadian ministers vow to retaliate. As trade relations hang in the balance, Canada braces for impact, emphasizing the significant economic ties between the two nations.
Top Canadian ministers stated on Monday that Canada would be prepared to retaliate after President Donald Trump announced he was considering imposing a 25% tariff on Canada and Mexico starting February 1. Trump has been warning about the possibility of implementing extensive tariffs on Canada, Mexico, and other trading partners, as reported by the Associated Press.
“We’re thinking in terms of 25% on Mexico and Canada,” Trump said late Monday night in the Oval Office. “I think February 1st.”
The timeline for the potential tariffs remains uncertain. Trump signed an executive order calling for a report coordinated by the Secretary of Commerce, due by April 1.
In his inaugural address, Trump promised that tariffs would be imposed, stating that foreign countries would bear the trade penalties. However, it's important to note that these taxes are typically paid by domestic importers and often passed on to consumers.
Canadian Foreign Minister Mélanie Joly said they “will continue to work on preventing tariffs” but said they are also “working on retaliation.”
Canadian Finance Minister Dominic LeBlanc said Trump can be unpredictable. “None of this should be surprising," he said. “Our country is absolutely ready to respond to any one of these scenarios.”
Canadian leaders earlier expressed relief the tariffs were not imposed on the first day of Trump taking office.
Canada is one of the most trade-dependent nations globally, with 75% of its exports, including automobiles and parts, directed to the U.S. In fact, Canada is the top export destination for 36 U.S. states. Each day, nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border.
Despite Trump’s assertion that the U.S. doesn't need Canada, a significant portion of the oil America consumes daily—about a quarter—comes from Canada.
“It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost living in the United States, in terms of jobs in the United States and the security of supply chains,” LeBlanc said.
Trump stated that he might impose 25% tariffs on Canada and Mexico as soon as February 1, while also pledging punitive measures against other countries as part of his new U.S. trade policy.
He revived his threat against these two major trading partners shortly after taking the oath of office, accusing them of not doing enough to stop illegal immigration and drug trafficking into the United States.
(With inputs from agencies)
- Canada's economy heavily relies on trade with the U.S., with 75% of its exports directed there.
- Potential tariffs could significantly impact the cost of living and job security in the U.S.
- Canadian leaders are preparing both defensive and retaliatory measures against possible tariffs.
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