Trump’s push to acquire Greenland has come after he has repeatedly needled Canada over its sovereignty and suggested it also be absorbed within the United States as a 51st state. File
| Photo Credit: Reuters

Ottawa:

After US President Donald Trump signed an executive order imposing 25 per cent tariffs on almost everything imported from Canada, outgoing Canadian Prime Minister Justin Trudeau offered a reminder to Americans that his country has been at their side in the “darkest hours” — be it Iran hostage crisis and war in Afghanistan, or deadly natural disasters such as Hurricane Katrina and the recent California wildfires. 

Addressing Americans directly from a press conference in Ottawa, Trudeau said he had no choice but to impose countermeasures.

“From the beaches of Normandy to the mountains of the Korean peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” Trudeau said. “We’ve built the most successful economic, military and security partnership the world has ever seen…We’re always there, standing with you.”

Noting that the US and Canada have had differences in the past, Trudeau said that both countries always found a way to get past them. 

“As I’ve said before, if President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us,” he said.

“Unfortunately, the actions taken today by the White House split us apart instead of bringing us together,” Trudeau added.

Canada Hits Back

“Canada will be responding to the US trade action with 25 per cent tariffs against Can$155 billion ($106 billion) worth of American goods,” he said in a dramatic tone as he warned of a fracture in longstanding Canada-US ties.

The first round of tariffs would target Can$30 billion worth of US goods on Tuesday followed by further tariffs on Can$125 billion worth of products in three weeks.

“We’re certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs,” Trudeau said.

He said the trade conflict will have “real consequences” for Canadians but also for Americans, who he said will suffer due to their President’s actions.

“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” the Canadian Prime Minister told US citizens. 

“They will raise costs for you, including food at the grocery store and gas at the pump,” he added.

The tariffs will apply to “everyday items” such as American beer, wine and bourbon as well as fruits, vegetables, consumer appliances, lumber and plastics, he added — “with much, much more.”

Trump’s Taxes

US President Donald Trump earlier announced broad tariffs on Canada, Mexico and China, citing a threat from illegal immigration and drugs.

Canadian exports to the United States will face a 25 per cent tariff starting Tuesday, although energy resources from Canada will have a lower 10 per cent levy.

The 9,000-km (5,600-mile) U.S.-Canada border handles over $2.5 billion in trade a day, especially in energy and manufacturing, according to Canadian government data from 2023.

In 2023, Canada exported close to C$550 billion worth of goods and services to the U.S., or more than three-fourths of its total exports. Energy accounted for 30 per cent and manufacturing contributed around 15 per cent to exports south of the border.

Exports to the US account for roughly 17.8 per cent of Canadian gross domestic product and more than 2.4 million jobs in Canada.
 

Canadian Prime Minister Justin Trudeau. File
| Photo Credit: AP

Outgoing Canadian Prime Minister Justin Trudeau said Thursday (January 23, 2025) that American consumers will pay more whenever President Donald Trump decides to apply sweeping tariffs on Canadian products.

Mr. Trump told reporters in the Oval Office Thursday (January 23, 2025) that he still plans to tariff Canada and Mexico at 25% rates starting as soon as February 1. Mr. Trump previously threatened to impose sweeping new tariffs on Mexico, Canada and China as soon as he took office, but the tariffs weren’t applied on day one.

Mr. Trudeau said if Mr. Trump does go forward “whether it be back on Jan. 20th, on Feb. 1st or Feb. 15th as a Valentines Day present, or on April 1st or whenever” Canada will respond with retaliatory tariffs and “prices for American consumers on just about everything will go up.”

“We don’t think he wants that,” Mr. Trudeau told reporters in Ottawa.

By targeting America’s second-largest trading partner after Mexico, Mr. Trump risks upending the markets for autos, lumber and oil – all of which could carry over quickly to consumers.

The premier of oil-rich Alberta, Danielle Smith, said Americans in some states could pay more than a dollar per gallon more for gas if Mr. Trump puts the tariff on Canadian oil.

Despite Mr. Trump’s repeated claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada.

America’s northern neighbour also has 34 critical minerals and metals that the U.S. is eager for and is also the largest foreign supplier of steel, aluminium and uranium.

“The U.S. should be working even more with Canada on our energy, on our critical minerals, on the goods they need to deliver the economic growth that Donald Trump has promised,” Mr. Trudeau said.

“That is our first choice. If they do move forward on tariffs, we are ready to respond in a strong way but in a way … to figure out how to get them removed as soon as possible.”

Canada is looking at putting retaliatory tariffs on American orange juice, toilets and some steel products if Mr. Trump follows through with his threat. When Mr. Trump imposed higher tariffs during his first term in office, Canada announced billions of dollars in new duties in 2018 against the U.S. in a tit-for-tat response to new taxes on Canadian steel and aluminium

“Everything is on the table.” Mr. Trudeau said. “It would be bad for Canada, but it would also be bad for American consumers.”

Nearly $3.6 billion Canadian dollars ($2.7 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.

Mr. Trudeau said Mr. Trump remains preoccupied with the border. The U.S. president told reporters at the White House earlier this week that, in his opinion, the amount of fentanyl coming through Canada and Mexico is “massive.”

“We have highlighted that less than one percent of illegal drugs coming into the United States, less than one percent of migrants going into the United States come from Canada but we’re still investing over a billion dollars and strengthening our border,” Mr. Trudeau said.

Mr. Trump continues to erroneously cast the U.S. trade deficit with Canada – a natural resource-rich nation that provides the U.S. with commodities like oil – as a subsidy. Mr. Trump incorrectly claims the U.S. has a “$200 billion” trade deficit.

“We’re not going to have that anymore. We can’t do that,” Mr. Trump said in a virtual appearance at the World Economic Forum. “You can always become a state, and if you’re a state, we don’t have a deficit. We won’t have to tariff you.”