Trudeau Vows ’Forceful but Reasonable’ Response to US Tariffs on Canada

By Staff, Agencies

Canadian Prime Minister Justin Trudeau has pledged to take a strong yet measured approach in response to US President Donald Trump's decision to impose a 25% tariff on imports from Canada.

In remarks on Friday, Trudeau emphasized that his government is ready to retaliate with a "purposeful, forceful but reasonable" response, underscoring the negative impact tariffs would have on businesses and consumers in both countries.

"We won't relent until tariffs are removed," Trudeau stated, calling the potential tariffs harmful to trade on both sides of the border. He also cautioned that difficult times could be ahead as tensions escalate between the two nations.

The tariffs, confirmed by White House Press Secretary Karoline Leavitt, are set to take effect on Saturday. Trump has linked these measures to the US demand for an end to illegal immigration and fentanyl smuggling, with 25% tariffs targeting both Mexico and Canada, and a 10% tariff on China over its role in supplying fentanyl chemicals.

This trade dispute comes after the 2020 implementation of the US-Mexico-Canada Agreement [USMCA], a deal signed by Trump, which governs the trade relationship between the US and its neighbors. Despite USMCA's significance, the ongoing tariff issue has cast a shadow over the trilateral trade arrangement.

The US trade deficit with USMCA reached $184.6 billion in 2022, with trade totaling $1.8 trillion. Despite the looming tariffs, Trudeau praised USMCA as "the most successful trading relationship in the world," reiterating that these new trade restrictions could hurt businesses and consumers, increasing costs across the board.

Trump's justification for the tariffs stems from his claims about escalating crime and illegal drug trafficking coming from both Canada and Mexico. He also warned that the tariffs would remain in effect until these issues are addressed, demanding both countries use their authority to curb the "invasion" of drugs and illegal immigrants.

Economic experts have voiced concerns over the potential impact of such tariffs. Moody's and S&P Global have both expressed uncertainty about the revenue that could be generated from the tariffs, suggesting that while Trump's tariffs could yield billions, they could also raise consumer prices and slow US economic growth.

The trade dispute comes amid global concerns over the potential for escalating retaliation. World Trade Organization Director-General Ngozi Okonjo-Iweala has warned that a trade war could lead to significant global economic losses, with the possibility of a downturn reminiscent of the Great Depression. The continued tariff standoff between the US, Canada, and other global powers leaves much uncertainty in the future of international trade.