TORONTO — On Friday, Canadian Prime Minister Justin Trudeau expressed concerns about the potential implementation of significant tariffs by President-elect Donald Trump on Canadian products. Trudeau emphasized that such measures would not only negatively impact Canadians but also lead to increased prices for American consumers and damage American businesses.
Trump has previously threatened to impose a tariff of 25% on all imports from Canada and Mexico unless both nations take substantial steps to address what he describes as an influx of drugs and illegal immigrants crossing their borders. He indicated that this tax could be one of his initial executive actions upon taking office.
Trudeau addressed the media in Prince Edward Island, explaining the potential repercussions of Trump’s tariff threats. “It is important to understand that Donald Trump, when he makes statements like that, he plans on carrying them out. There’s no question about it,” he stated. He further noted that the issue goes beyond affecting Canadians as it also risks inflating costs for everyday American citizens, adversely impacting American industries and businesses.
He highlighted that Trump was elected on the premise of lowering grocery prices, but the imposition of a 25% tariff on various products—including potatoes from Prince Edward Island—could severely undermine that promise. Such tariffs could jeopardize the North American trade agreement that was renegotiated during Trump’s first term, which Trudeau characterized as mutually beneficial.
“We can work together as we did previously,” Trudeau asserted, urging for collaborative efforts to mitigate concerns.
The threat of tariffs emerged as Trump criticized the surge of illegal migration, despite the fact that the scale of such migration at the Canadian border is minimal compared to that of Mexico. The U.S. Border Patrol reported 56,530 arrests at the southern border for October, contrasted with 23,721 arrests at the northern border in a year-long period through September 2024.
Moreover, while Trump raised alarms over fentanyl trafficking from both borders, the actual figures show that seizures at the Canadian border are significantly lower compared to the absurd amounts confiscated from Mexico. Last fiscal year, customs agents seized just 43 pounds of fentanyl at the Canadian border versus an alarming 21,100 pounds at the Mexican border.
Canadian officials have voiced that linking their nation to Mexico in discussions about drug trafficking is unjust. However, they are open to enhancing investments in border security. Trudeau communicated a willingness to address concerns collaboratively with Trump, focusing on constructive dialogue to keep relations on the right track for Canadians.
Mexican President Claudia Sheinbaum expressed optimism on Thursday regarding avoiding a tariff conflict with the United States, revealing that Trump had assured her of cooperation to curb unauthorized migration into the U.S.
Previous experiences during Trump’s first term saw a cycle of retaliatory tariffs as other countries responded to U.S. tariffs with their own. For instance, Canada enacted billions in new tariffs in 2018 as a direct response to the U.S. imposing tariffs on Canadian steel and aluminum.
Currently, Canada is contemplating potential retaliatory tariffs against U.S. products should Trump pursue his proposed tariffs. An official conveyed that Canada is preparing for various possible outcomes and has begun identifying specific items for potential retaliation, although no decisions have been finalized.
In the United States, business organizations quickly warned of the impact escalating tariffs could have on inflation. House Democrats are creating legislation geared towards limiting a president’s authority to impose such tariffs, asserting that significant tariffs would likely inflate prices for essential goods like vehicles, footwear, housing, and food.
Canada represents the primary export destination for 36 U.S. states, with nearly $3.6 billion Canadian (approximately US$2.7 billion) in goods and services crossing the border daily. A significant portion of U.S. crude oil and electricity imports originates from Canada, alongside being the largest foreign supplier of steel, aluminum, and uranium to the U.S.
Considering its trade-centric economy, a staggering 77% of Canadian exports are directed to the U.S. “Canada has reason to fear because Trump is impulsive, often influenced by the last thing he sees on Fox News,” commented Nelson Wiseman, professor emeritus at the University of Toronto. “He may prioritize measures that resonate with public sentiment over considering their broader implications.”