Fears are intensifying that Donald Trump’s tariff threat will become a reality for Canada.
Officials around Prime Minister Justin Trudeau are increasingly worried that the U.S. president-elect’s mind is made up, and that he will make good on his threat to impose a 25 per cent levy on all Canadian imports the day he takes office.
According to a senior Canadian government source, the concern is based in part on Trump’s recent language on social media, and how he continues to promote and praise what he sees as the effectiveness of tariffs.
For example, his Truth Social post on Jan. 1, when he wrote: “Tariffs, and Tariffs alone, created this vast wealth for our Country … Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!”
The latest example is Trump lashing out at the Washington Post, over a story it published suggesting he may weaken his threat of universal tariffs of at least 10 per cent on all imports.
“The story in the Washington Post .. incorrectly states my tariff policy will be pared back. That is wrong,” Trump wrote.
Prime Minister Justin Trudeau said the Liberal government will remain ‘singularly focused’ on protecting Canadian interests and continuing to ‘fight for the economy’ even as the party undergoes a leadership race in the wake of his resignation announcement.
Trudeau announced his resignation as prime minister and Liberal leader early Monday. But, according to the source, who was granted anonymity as they were not authorized to speak publicly, part of the reason Trudeau decided to remain in office for now is to deal with the Trump transition, and the tariff threat. Trump will take office on Jan. 20.
The federal government had promised to spend more than $1 billion on border security improvements in order to satisfy some of Trump’s concerns. However due to the prorogation of Parliament, which Trudeau also announced on Monday, that funding is now in limbo.
Potential retaliation
Canada is in the process of finalizing its retaliation plan, should the tariff fears come to fruition.
As a list of retaliatory tariffs is finalized, the source says Florida orange juice will likely be one of the many products targeted.
By choosing an export from Trump’s adopted state, it’s meant to send a message to those at the new centre of American power.
Canadian officials are expected to start making their threats public in the days ahead, the source says.
Canada imposed retaliatory tariffs on the U.S. before, during Trump’s first administration.
Industries and goods were selected in the hopes of extracting maximum political damage, while not making life more expensive for Canadians.
In a major political development, Justin Trudeau has announced he will step down as both prime minister and Liberal Party leader once a replacement is chosen, likely delaying a federal election until the spring. Andrew Chang breaks down what led to this announcement and the implications of proroguing Parliament amid growing tensions with the U.S and president-elect Donald Trump.
Images gathered from Reuters, Getty Images and The Canadian Press.
