Trudeau warns of higher consumer costs if Trump imposes tariffs on Canadian goods

Canada poised to respond to tariff threats

“If President Trump decides to use these tariffs—whether connected February 1, February 15 arsenic a Valentine’s Day gift, oregon immoderate different date—Canada volition respond with retaliatory measures,” Trudeau said, according to quality bureau The Associated Press. “And prices for American consumers connected astir everything volition rise. We don’t judge helium wants that.”

Trump, who had earlier told reporters successful the Oval Office that helium intends to determination guardant with a 25 percent tariff connected Canadian and Mexican imports, could instrumentality the tariffs arsenic aboriginal arsenic February.

The Canadian person cautioned that targeting 1 of America’s largest trading partners could person far-reaching consequences for industries specified arsenic oil, lumber, and automobiles—sectors captious to some economies.

Impact connected lipid and substance prices

Danielle Smith, Premier of Alberta, echoed Trudeau’s concerns, informing that tariffs connected Canadian lipid could importantly rise substance prices successful the US. “In immoderate states, Americans could wage implicit a dollar much per gallon for gas,” she said, arsenic reported by the AP.

The US imports a important magnitude of lipid from Canada, with astir 25 percent of its regular depletion coming from its bluish neighbour. This narration makes Canada a cardinal supplier of captious resources to the US economy.

Economic ties betwixt US and Canada

Despite Trump’s assertions that the US does not trust heavy connected Canadian goods, Trudeau highlighted the intertwined quality of the 2 economies. Canada is the largest overseas supplier of steel, aluminium, uranium, and 34 captious minerals to the US economy.

“The US should beryllium moving much intimately with Canada connected energy, captious minerals, and the goods needed for the economical maturation President Trump has promised,” Trudeau said. “That is our preference. But if tariffs are imposed, we are prepared to respond powerfully and enactment to region them arsenic soon arsenic possible.”

Potential Canadian retaliation

In effect to the looming tariffs, Canada is reportedly considering retaliatory measures that could see levies connected US exports specified arsenic orangish juice, toilets, and definite alloy goods. Trudeau pointed to Canada’s erstwhile retaliation during Trump’s archetypal term, which progressive billions of dollars successful duties connected US goods.

“Everything is connected the table,” Trudeau said. “This would beryllium atrocious for Canada, but it would besides beryllium atrocious for American consumers.”

Economic tensions implicit commercialized shortage claims

Canada is the apical export destination for 36 US states, with much than $2.7 cardinal worthy of goods and services crossing the borderline each day. However, Trump has repeatedly criticized the commercialized relationship, often claiming that the US runs a $200 cardinal commercialized shortage with Canada.

“We’re not going to person that anymore,” Trump said during a caller quality astatine the World Economic Forum. He adjacent suggested that Canada could debar tariffs by becoming a US state. “If you’re a state, there’s nary deficit, and we wouldn’t request to tariff you,” Trump remarked.

Trudeau disputes Trump’s concerns

In his remarks, Trudeau besides addressed Trump’s absorption connected borderline security, countering claims that drugs and migrants are entering the US from Canada successful ample numbers. “Less than 1 percent of amerciable drugs and migrants entering the US travel from Canada,” Trudeau said. He noted that Canada has nevertheless committed implicit a cardinal dollars to heighten borderline security.

Emphasizing collaboration

As tensions implicit commercialized simmer, Trudeau emphasized the value of collaboration betwixt the US and Canada. Both economies are profoundly interconnected, and immoderate disruption — specified arsenic the imposition of wide tariffs — could person important consequences for businesses and consumers connected some sides of the border.

“We are prepared to enactment with the United States to region immoderate barriers to trade, but struggle implicit tariffs is not the way forward,” Trudeau said.