Canadian Prime Minister Justin Trudeau announced on Monday that Canada is preparing to respond if the incoming Trump administration implements threatened tariffs after the January 20 inauguration. Addressing the Halifax Chamber of Commerce, Trudeau emphasized that Ottawa is evaluating the “right” response, drawing on strategies used when retaliating against previous U.S. tariffs on steel and aluminum.
“Our countermeasures to unfair tariffs were effective in having them lifted last time,” Trudeau stated, referencing Canada’s tariffs on steel, aluminum, and over 250 U.S. goods, including beer kegs, whiskey, and orange juice. These measures were designed to exert political pressure within the U.S. and highlight the impact on bilateral trade.
Trudeau described the past actions as “carefully targeted” and “politically impactful,” allowing Canada to “punch back” effectively despite its smaller economy.
The president-elect also threatened tariffs on Mexico, citing border security concerns, although migrant crossings and fentanyl seizures are significantly lower on the U.S.-Canada border compared to the southern border.
While recognizing the potential economic consequences of the proposed tariffs, Trudeau urged Canadians to remain calm, explaining that such threats are often negotiation tactics aimed at destabilizing counterparts.
Trudeau is set to convene with Canada’s provincial and territorial leaders on Wednesday to finalize a negotiation strategy.
In a lighthearted anecdote, Trudeau dismissed earlier remarks by Trump at Mar-a-Lago suggesting Canada should become the 51st U.S. state. Public Safety Minister Dominic Leblanc clarified that the comment was made in jest.
