Canada is bracing for a potential trade war with the United States as President Donald Trump threatens to impose tariffs on Canadian goods. Premiers met with Prime Minister Justin Trudeau to discuss a strategy, leaning towards retaliatory measures. However, not all premiers agree on the approach, with some advocating for alternative solutions.
OTTAWA — Canada appears to be leaning toward retaliating with matching tariffs if President Donald Trump follows through on his threats, but not all premiers are on board with this approach. The premiers met virtually with Prime Minister Justin Trudeau and other federal officials on Wednesday morning to discuss Trump ’s initial actions as president and the looming threat of tariffs, which could take effect as early as next week.
Trump signed an executive order on Monday directing his government to investigate alleged unfair trade practices by Canada and Mexico and submit a report by April 1. Ontario Premier Doug Ford, who currently chairs the Council of the Federation, stated Wednesday that premiers aim to ensure Canada has a “solid plan.” “We know these tariffs are coming Feb. 1. We need to match those tariffs dollar-for-dollar, tariff-for-tariff, and make sure that it hurts the Americans as much as it hurts Canadians,” he told reporters in Toronto. The federal Liberal cabinet spent two days at a retreat this week, awaiting Trump’s next move and finalizing details of their response. Trudeau told reporters on Tuesday that the shifts in Trump’s rhetoric and timelines are typical, adding that his government has plans for various scenarios and is prepared to retaliate, supporting the “principle of dollar-for-dollar matching tariffs.”Saskatchewan Premier Scott Moe indicated Wednesday that while he supports the Team Canada approach, “broad-based tariffs, dollar-for-dollar tariffs with the U.S. is not in Canadians’ best interest, nor should export tariffs ever be considered by our government.” Export taxes on energy were a significant point of contention for Alberta Premier Danielle Smith following last week’s meeting. She declined to sign a joint statement from that meeting because the federal government refused to exclude energy exports from its list of potential retaliatory actions. Smith posted on social media Wednesday that the meeting was “more positive this week” and that there’s growing consensus that Canada needs to commit to enhancing border security and increasing defense spending. When he initially threatened to impose tariffs, Trump stated they were a response to what he called inaction by Canada and Mexico on illegal drugs and migrants entering the U.S. Canadian officials assert that less than one percent of fentanyl or migrants entering the U.S. originate from Canada. The federal government announced a $1.3-billion plan to bolster border security in December, and this week the RCMP deployed two new helicopters for surveillance along the boundary. Trump has also claimed the tariffs are a way to pressure Canada over the United States’ trade deficit with this country. Smith stated there was “general agreement on the need to focus more on constructive, proactive diplomacy with U.S. lawmakers rather than escalating rhetoric” at Wednesday’s meeting. Ford said Smith “understands we need to be united, and I understand that she wants to protect her main commodity.” “But country comes first, over anything, and you can’t throw a tool away from the tool box,” he added. When asked if Smith is now aligned with her colleagues, Ford said, “I think we’re moving her along.” “It’s important that if we ask a province to make a special contribution, that the province agrees,” he said outside a caucus meeting in Quebec’s Laurentians region. “As for retaliatory measures, we agreed on certain steps, but we are not going to reveal them,” he added. “We’ll wait for Mr. Trump to file tariff increases before filing reprisals.” Trudeau’s office released a statement Wednesday affirming that preventing tariffs remains the government’s top priority. Nova Scotia Premier Tim Houston stated he will support the federal government’s retaliation against what he termed “the Trump tax,” adding the looming trade war should be a signal that Canada needs to strengthen its own economy. “That means looking at our own internal trade policies across the country, and asking ourselves simple questions like, ‘Why is it so hard to send a bottle of wine from one province to another?'” he said. The Committee on Internal Trade, comprising representatives from all provinces and territories and Internal Trade Minister Anita Anand, has agreed to convene an urgent meeting to discuss ways to ease the movement of goods within the country. Anand posted on social media that “removing trade barriers within Canada could add up to $200 billion to our economy and mitigate the impact of tariffs.”
CANADA TRUMP TARIFFS TRADE WAR PREMIERS JUSTIN TRUDEAU BORDER SECURITY ECONOMICS
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