TORONTO — Canadian Prime Minister Justin Trudeau said Monday that Americans “are beginning to wake up to the real reality that tariffs on everything from Canada would make life a lot more expensive” and that he will fight if President Donald Trump goes ahead with them.
Trump later responded by referring to Canada as a state and Trudeau as its governor.
Speaking at an event hosted by the Halifax Chamber of Commerce, Trudeau also stated that dealing with Trump will be “a little more challenging” than the previous time since Trump’s team has a lot clearer set of ideas about what they want to achieve right away than after his first election victory in 2016.
The US president-elect has vowed to levy a 25% tax on any products entering the US from Canada and Mexico until they stop the influx of migrants and drugs.
“Trump got elected on a commitment to make life better and more affordable for Americans, and I think people south of the border are beginning to wake up to the real reality that tariffs on everything from Canada would make life a lot more expensive,” Mr. Trudeau said.
On the weekend, Trump spoke on NBC’s “Meet the Press,” where he stated that he cannot guarantee that his projected tariffs on important U.S. foreign trade partners will not boost American consumer costs.
“Let’s not kid ourselves in any way, shape or form, 25% tariffs on everything going to the United States would be devastating for the Canadian economy,” Mr. Trudeau claimed.
“It would also cause significant hardship for Americans. Americans import 65% of their crude oil from Canada, as well as large amounts of electricity. Almost all of Canada’s natural gas exports go to the United States. They depend on us for steel and aluminium. They rely on us for a variety of agricultural goods. All of those goods would become more expensive.
Trump appeared to respond to Trudeau’s statements with a social media post late Monday, mentioning Trudeau’s previous dinner at Mar-a-Lago, when some claim Trump joked about Canada being the 51st state.
“It was a joy to have dinner the other night with Governor Justin Trudeau of the Great State of Canada. I look forward to seeing the Governor again soon so that we may continue our in-depth discussions on tariffs and trade, the outcomes of which will be truly fantastic for all! “DJT,” Trump wrote on Truth Social.
If Trump follows through on his vow to impose 25% tariffs on all imports from Mexico and Canada, the price rises that could result will contradict his campaign promise to provide American households a respite from inflation.
According to economists, corporations would have little choice but to pass on the increased expenses, resulting in drastically higher prices for food, clothing, automobiles, alcohol, and other commodities.
The Produce Distributors Association, a Washington trade group, has stated that tariffs will hike fresh fruit and vegetable costs and harm US farmers if other countries retaliate.
“We will of course, as we did eight years ago, respond to unfair tariffs,” Mr. Trudeau said.
Trudeau said his government is still considering “the right ways” to retaliate, referring to when Canada imposed billions of dollars in extra tariffs against the United States in 2018 in retaliation for higher charges on Canadian steel and aluminum.
Many of the American products were chosen for their political rather than economic significance. For example, Canada imports only $3 million of yogurt from the United States each year, the majority of which comes from a single manufacturer in Wisconsin, the home state of then-Republican House Speaker Paul Ryan. That goods was charged a 10% tariff.
“It was the fact that we put tariffs on bourbon and Harley-Davidsons and playing cards and Heinz ketchup and cherries and a number of other things that were very carefully targeted because they were politically impactful to the president’s party and colleagues,” Mr. Trudeau said.
Trudeau stated that when Trump says something, he means it, but they also understand that Trump is attempting to introduce doubt and “a bit of chaos” into democracies.
“One of the most important things for us to do is not freak out, not to panic,” Mr. Trudeau said.
“Knowing these would be absolutely devastating means we have to take them seriously but it does mean we have to be thoughtful and strategic and not going around making our opponents arguments for him but making our arguments in a significant and united way.”
Canadian officials have stated that it is wrong to group Canada in with Mexico.
Last fiscal year, US customs inspectors captured 43 pounds of fentanyl at the Canadian border, versus 21,100 pounds at the Mexican border.
The majority of fentanyl reaching the United States, where it causes over 70,000 overdose deaths each year, is manufactured by Mexican drug traffickers using precursor chemicals trafficked from Asia.
In terms of immigration, the US Border Patrol reported 1.53 million interactions with irregular migrants across Mexico’s southwest border between October 2023 and September 2024. That compares to 23,721 interactions at the Canadian border during the same period.
Trump has also stated that the United States is “subsidizing Canada to the tune of over $100 billion per year.”
Kirsten Hillman, Canada’s ambassador to Washington, addressed the Associated Press about America’s trade deficit. The United States had a $75 billion trade imbalance with Canada last year, but it should be emphasized that one-third of what Canada sells into the United States is energy exports, and prices have been high.
Canada supplies over 60% of the United States’ crude oil imports, as well as 85% of its electricity imports.
Canada is also the greatest foreign supplier of steel, aluminum, and uranium to the United States, with 34 vital minerals and metals that the Pentagon seeks and invests in for national security.
Every day, about $3.6 billion in Canadian (US$2.7 billion) products and services pass the border. 36 U.S. states consider Canada their top export destination.