With the inauguration of the American president-elect, Donald Trump, who threatened to impose punitive tariffs on Canadian imports from the first day of his mandate, the Canadian government assured that it is prepared to retaliate against the United States.
We are not looking for a fight, but we will be there to fight if necessary, said Prime Minister Justin Trudeau at the opening of the meeting of the Council on Canadian-American Relations in Toronto.
This meeting follows the meeting that took place on January 15 in Ottawa between Trudeau and the 13 premiers of the Canadian provinces and territories, stating that “all retaliatory measures are now on the table” if Trump decides to carry out his threats to impose 25% tariffs on all products imported from Canada.
Ottawa still hopes to prevent the implementation of these tariffs that will cause great harm to Canadians but also to millions of Americans, according to Trudeau. Several federal ministers have also traveled to Washington in recent days to hold talks with Republican and Democratic officials with the intention of avoiding a trade war with the United States.
This expression was repeated several times on January 17 by Foreign Minister Mélanie Joly, after a visit to the American capital. During her visit to Washington, Minister Joly met with Republican Senators Lindsey Graham and James Risch, as well as John Thune, the second Republican in the Senate, and Democratic Senator Jeanne Shaheen.
Retaliatory measures
In particular, Joly informed them of the impacts that such tariffs will likely have on the American economy and of the retaliatory measures that Canada could be forced to resort to in response if Trump’s threats are applied.
Responding to questions from the press, Canada’s foreign minister said that most of the officials she spoke to expressed shock and fear at these threats. Some did not even seem to be aware of the existence of these threats or the tools Canada has to deal with them, Joly explained.
Minister Joly also explained that President Trump will end up launching a trade war if he follows through with his tariff threats, which will lead to the loss of many jobs across Canada and an increase in the cost of living in the country.
She assured that Canada is prepared to face this trade war. We will be ready to exert maximum pressure because this trade war could have devastating effects for Quebecers and Canadians, she added.
A Response in Several Stages
Earlier in the day, a high-ranking federal source said that if the US tariff threats are implemented, Justin Trudeau’s government will retaliate by launching a first round of tariffs on US products worth $37 billion. With this first defensive measure, Ottawa will seek to target products with a limited impact on the Canadian economy.
However, Ottawa is considering a second round of retaliatory tariffs, this time worth $110 billion. These, the source explained, would have the potential to be more damaging to the country’s economy. The federal government refrained from giving further details on the products that would be affected by these retaliatory measures.
Required Consultation Period
However, a consultation period will be necessary, which should last between 15 and 30 days, before applying these retaliatory tariffs. Ottawa would prefer the first, shorter option of 15 days.
Prime Minister Justin Trudeau is due to chair the first meeting of his new Canada-US Relations Council, which is expected to be able to guide the government on how best to weather the potential storm that is coming.
That council includes former Alberta Premier Rachel Notley, former Canadian ambassador to the United States David MacNaughton and former Quebec Premier Jean Charest.
