Canadian Prime Minister Justin Trudeau announced a plan of retaliatory measures against potential 25% tariffs imposed by the incoming US administration under President Trump. The measures include restricting Canadian energy and key material exports and imposing tariffs on US goods. The move highlights the tense trade relationship between the two countries, particularly after Trump accused Canada of not doing enough to prevent illegal immigration and drug trafficking across the border.
Trudeau made the announcement at a news conference in Ottawa, surrounded by members of his government and the leaders of most of Canada ’s provinces and territories. If Trump follows through on his threat to slap a 25% tariff on all Canadian imports, Ottawa is planning to restrict Canadian exports of energy and key materials, along with tariffs of its own.
The United States and Canada are each other’s biggest trade partners, with hundreds of billions of dollars worth of imports and exports each year. Canada is also the main source of U.S. energy imports. According to data from the Canadian government, it supplied 61% of U.S. crude oil imports in 2021. In 2020, it supplied the U.S. with 98% of natural gas imports, 93% of electricity imports, and 28% of uranium purchases. While the U.S. economy would be hurt by Canadian retaliatory measures, the Canadian economy would be devastated by Trump’s plan. The Canadian Chamber of Commerce warned that 25% U.S. tariffs could send the Canadian economy into a recession by the summer. The planning has sparked an internal crisis, with the heads of Canada’s oil-rich areas warning that they would not support plans to halt energy exports. Alberta Premier Danielle Smith, head of the oil-rich province, said her administration would refuse to follow any order to stop oil exports. “Federal government officials continue to publicly and privately float the idea of cutting off energy supply to the U.S. and imposing export tariffs on Alberta energy and other products to the United States. Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs,” she said in a post on X. “Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies,” Smith added. I had a constructive discussion with my fellow Premiers on how best to deal with the threat of tariffs from the incoming U.S. administration. We agreed on several strategies and I look forward to continuing to work with them on this critical issue. She kept her name off a joint statement from the leaders of Canada’s provinces and territories, which attempted to project a united front against Trump’s tariff threats. She was the only leader to do so. Trump’s tariff threats were a response to accusations that Canada wasn’t doing enough to prevent illegal immigrants and drugs from crossing its border into the U.S. After they were announced, Trudeau’s government rolled out a $1.3 billion CAD plan to improve border security, and the prime minister visited Mar-a-Lago, but he wasn’t able to convince Trump that the tariffs weren’t necessary. Trudeau resigned as prime minister on Jan. 6 after seeing his popularity dwindle, but he will remain in the position until at least March while the Liberal Party decides on its next leader
CANADA TRUDEAU TARIFFS TRADE WAR ENERGY EXPORTS BORDER SECURITY UNITED STATES POLITICS INTERNATIONAL RELATIONS
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