Ottawa: Canada is gearing up to respond decisively if the incoming U.S. administration under President-elect Donald Trump enacts a 25% tariff on imports from Canada. Finance Minister Chrystia Freeland assured reporters on Friday that the Canadian response would be both “robust and effective” if such “unjustified” tariffs are imposed.
Prime Minister Justin Trudeau, Freeland, and the provincial premiers have held two conference calls in recent days to discuss strategies for countering the tariff threat. Freeland emphasized the importance of a united front, stating, “In the event that the United States were to impose unjustified tariffs on Canada, of course, we would respond, and the Canadian response would necessarily be robust. I am confident that it would be effective.”
Exploring Retaliatory Measures
Bloomberg reported that Canada is evaluating potential export taxes on commodities such as uranium, oil, and potash. However, a Canadian government insider clarified that discussions remain at an exploratory stage, with no decisions finalized.
Despite the call for unity, there is discord among provincial leaders regarding possible retaliatory actions.
Premiers Voice Opposition
Scott Moe, premier of Saskatchewan, strongly opposed the idea of export taxes. “Export taxes on these commodities would be a self-destructive response to U.S. tariffs as they would only increase the harm to our economy and jobs,” Moe stated in a post on X, highlighting that Saskatchewan’s economy relies heavily on its production of oil, uranium, and potash. He went on to describe export taxes as a “complete betrayal” by the federal government.
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Similarly, Alberta Premier Danielle Smith rejected the notion of restricting energy exports to the U.S., warning against a tariff war with Canada’s largest trading partner. “We will not support cutting off our Alberta energy exports to the U.S., nor will we support a tariff war with our largest trading partner and closest ally,” she declared.
Trump’s Justification for Tariffs
President-elect Trump has indicated that the proposed tariffs are intended to pressure Canada to curb the movement of drugs and migrants across the U.S.-Canada border. His remarks have sparked widespread concern among Canadian officials, who are bracing for heightened tensions with the new administration.
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While Canada aims to maintain its historically strong trading ties with the U.S., Freeland underscored that unjustified trade actions would compel a firm response from Ottawa.
