Canadian Prime Minister Justin Trudeau said on Wednesday that while Canada hopes to avoid a trade war with the US, it is prepared to respond strongly if necessary.
The Prime Minister met with provincial and territorial leaders in Ottawa on Wednesday to discuss the looming threat of US tariffs, following US President-elect Donald Trump’s warning of a 25% tariff on all Canadian imports.
Trudeau confirmed that “nothing is off the table” regarding retaliatory measures, but also made it clear that the burden of such actions should be shared across Canada to avoid unfairly targeting one region.
The possible retaliatory measures discussed include imposing tariffs on American goods, such as steel products, glassware, and even Florida orange juice, reported AFP.
Provincial leaders, including Alberta’s Premier Danielle Smith, raised concerns over cutting off oil and energy exports to the US, a suggestion that was met with resistance. Smith, whose province is a major oil exporter to the US, said that Alberta would not support such a move, emphasising the need to protect the energy sector.
Ontario Premier Doug Ford, on the other hand, argued for a unified response, saying, “When Donald Trump comes at us… he’s coming full tilt at Canadians as a whole.” He stressed the importance of a strong retaliatory response to send a clear message to the US.
The Canadian government has also pledged nearly $1 billion for new border security measures to address concerns over illegal drug trade and human trafficking.
The US-Canada trade relationship is vital. Canada is the largest export destination for 36 US states. Nearly $3.6 billion in goods and services cross the border daily, according to AFP report.
Trump, set to be inaugurated on Monday, has said he will use economic pressure to push Canada towards becoming the 51st US state. He also continues to frame the US trade deficit with Canada, as a form of subsidy.
