With just days to go before Donald Trump takes over America’s presidency, Canada is preparing to pour in billions of dollars to tackle the US’ upcoming tariff measures. The countermeasures are expected to impact US exports, according to a report by the New York Times.
Last year in November, President-elect Donald Trump pledged big tariffs on the United States’ three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars.
Trump, who takes office on January 20, said he would impose a 25 per cent tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.
“Everything is on the table,” Canadian Prime Minister Justin Trudeau said during a news conference on Wednesday.
What are the measures taken by Canada?
Canada has unveiled a range of measures to strengthen border security, including increasing personnel and enhancing technology. On Wednesday, the government announced the deployment of Blackhawk helicopters and additional drones to enhance surveillance along the shared border.
Trudeau has said that Canada will pursue an eye-for-eye approach to mitigate the effects of Washington’s aggressive economic moves against Ottawa. These measures would see Canada impose tariffs on hundreds of billions of dollars’ worth of goods exported to the United States.
Canada might introduce tariffs on major US imports like orange juice, according to officials. However, Prime Minister Trudeau admitted on Wednesday that tariffs from either side would ultimately harm both nations and their consumers.
Impact Shorts
More ShortsThe ‘Team Canada’ approach
In an effort to negotiate or at least divert the negative effects Trump’s 25 per cent tariff plan might have on Canada’s economy, Trudeau is planning to resurrect his ‘Team Canada’ approach that he employed on Trump during his previous presidency.
A Canadian source told Global and Mail that Trudeau will also revive the lobby campaign it used in 2017 and 2018 where he would encourage premiers and business leaders to influence their US contacts to nudge Congress leaders in the other direction.
On Tuesday, Trudeau said he had a “good call” with Donald Trump and discussed “how intense and effective connections” are between Canada and the US.
Not everyone on board
As Trudeau braces for an all-out trade war with the upcoming Trump administration, he is expecting “Team Canada” to stick with him.
However, not everyone is on board with Trudeau’s plan. Danielle Smith, Alberta province’s Premier, has refused to sign a joint statement on how Canada should respond to Trump’s tariff threats.
Federal government officials continue to publicly and privately float the idea of cutting off energy supply to the US and imposing export tariffs on Alberta energy and other products to the United States,” Smith said on X.
She added, “Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs. Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products.”
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