Canada’s Prime Minister Justin Trudeau said his country will respond “robustly” if US President Donald Trump follows through with imposing tariffs on Canada, telling reporters on Tuesday that “everything is on the table.”
“If there are unfair tariffs, we will respond robustly and we will be there to support Canadians and protect our interests,” Trudeau said at the press conference in French when responding to a journalist’s question.
Trump said in an Oval Office signing ceremony Monday evening that his administration will impose a 25% tax on goods from Canada and Mexico that may come as soon as February 1 – a move that could raise prices for American consumers.
Trudeau also addressed Trump’s executive action, signed Monday, that directs officials to analyze how the US-Mexico-Canada trade agreement (the USMCA) is affecting American workers and businesses — and whether America should remain in the free trade agreement. His action requires agencies to assess whether stricter US trade policy could successfully restrict the flow of fentanyl and the flow of undocumented migrants into the United States.
“While less than 1% of fentanyl and illegal immigrants that enter the United States come from Canada, our government has already acted to address the concerns raised by the president about border security with an over $1 billion comprehensive border plan,” said Trudeau. “We’re already working collaboratively to keep our citizens safe on both sides of the border.”
“Canadian energy powers American manufacturing, businesses, and homes. Of America’s top five trading partners, Canada is the only one with whom the United States runs a trade surplus in manufacturing, and Canada buys more goods made by Americans than China, Japan and Germany combined,” he said.
Trudeau remarked that Trump’s stated US “golden age” would require more steel, aluminum, minerals and reliable and affordable energy. “Canada has all those resources, and we stand at the ready to work with the United States to create a booming and secure North American economy,” he said.
“The alternative for them would be more resources from Russia, China, or Venezuela. Canada is a safe, secure, and reliable partner in an uncertain world,” he added.
The tariffs, if enacted, could strain Americans’ wallets, especially given Mexico and Canada are two of America’s top three trade partners. Collectively, they accounted for 30% of the value of all the goods the US imported last year, according to federal trade data.
While Trump claims foreign exporters pay the tariffs, US consumers stand to foot a portion of the bill, too, as retailers are unlikely to fully absorb the added costs.