TORONTO — Canadian Prime Minister Justin Trudeau expressed concerns on Thursday regarding potential tariffs that U.S. President Donald Trump may implement on Canadian goods. Trump announced that he intends to impose tariffs of 25% on products from Canada and Mexico, with plans to start as early as February 1.
Trudeau warned that should these tariffs take effect — whether on February 1, February 15, or any date thereafter — Canadians would retaliate with their own tariffs, resulting in heightened costs for American consumers across a variety of essential goods. He stated, “Prices for American consumers on just about everything will go up,” emphasizing that this should be a significant concern for the U.S. administration.
By targeting Canada, which is America’s second-largest trading partner after Mexico, these tariffs could disrupt several key markets, including those for automobiles, lumber, and oil. The consequences may be felt quickly by consumers in the U.S. Danielle Smith, the premier of Alberta, highlighted that certain states might see an increase in gas prices by over a dollar per gallon if Canadian oil is subject to tariffs.
Despite Trump’s claims that the U.S. does not depend on Canadian resources, Trudeau pointed out that a substantial portion of American daily oil consumption—nearly 25%—comes from Canada. Additionally, Canada is a key source of critical minerals and metals as well as the leading foreign supplier of steel, aluminum, and uranium to the U.S.
Trudeau advocated for enhanced cooperation between the U.S. and Canada in areas of energy and critical minerals, stating, “The U.S. should be working even more with Canada on our energy.” He indicated that in the event of tariff implementation, Canada would respond robustly while simultaneously seeking to resolve the issue to revert tariffs as quickly as possible.
Canada is preparing potential retaliatory tariffs on American products, such as orange juice and certain steel items, should Trump follow through on his threats. When Trump initially increased tariffs in his first term, Canada retaliated with substantial duties in 2018, targeting U.S. goods in response to American tariffs on Canadian steel and aluminum.
Trudeau remarked, “Everything is on the table,” stressing that while such actions would negatively impact Canada, they would also harm American consumers. Approximately CAD 3.6 billion (USD 2.7 billion) worth of goods and services are exchanged daily between the two nations, with Canada being the largest export market for 36 U.S. states.
In a separate issue, Trudeau noted that Trump seems preoccupied by border security, particularly concerning drug trafficking. This week, Trump asserted that a significant amount of fentanyl enters the U.S. through Canada and Mexico. However, Trudeau pointed out that less than one percent of illegal drugs and migrants entering the United States come from Canada. He also mentioned investments exceeding one billion dollars in strengthening border security in response to concerns.
Moreover, Trump has mistakenly characterized the trade deficit with Canada — a country rich in natural resources and vital commodities — as a subsidy. He claims a staggering “200 billion” deficit inaccurately. “We’re not going to have that anymore. We can’t do that,” Trump asserted recently, suggesting that if Canada were to become a U.S. state, the trade dynamics would shift, eliminating the deficit and the need for tariffs.
