TORONTO — On Friday, Canada’s Foreign Minister issued a stern warning to Americans about the potential economic repercussions of President-elect Donald Trump’s threats to enact a 25% tariff on Canadian goods. Mélanie Joly emphasized that if the tariffs are implemented, Canadians will respond decisively, highlighting the readiness to impose their own retaliatory measures against the United States.
Joly, following discussions with U.S. senators in Washington, made it clear that Canada will take action if necessary. “If we must retaliate, we will. And Americans will face the consequences of Trump’s tariff tax,” she remarked. Trump’s proposed tariffs on Canada, Mexico, and other trade partners have created significant uncertainty, leaving many to ponder whether these measures are merely part of negotiating tactics or represent a fundamental shift in U.S. foreign trade relations.
Recently, Trump’s administration has strengthened its position on imposing tariffs while minimizing concerns about rising inflation. “Americans are just beginning to recognize this potential impact,” Joly noted. She explained that Canada is prepared to launch an initial set of retaliatory tariffs, with additional measures to follow if Trump pursues his agenda. However, she stated that any definitive actions would depend on the specifics of Trump’s executive order.
Joly expressed confidence in Canada’s ability to respond effectively. “We are well organized, and I would argue even better organized than the Americans,” she asserted. Trump’s move to target Canada, the United States’ second-largest trading partner after Mexico, could disrupt key markets, including those for cars, lumber, and oil, ultimately impacting American consumers.
Contrary to Trump’s belief that Canada is not essential to the U.S., Joly pointed out that Canada supplies a quarter of the oil consumed daily in the United States. The economic connection between the two nations is profound, especially in the automotive industry where components often traverse the border multiple times before final assembly in Ontario or Michigan. Outgoing Prime Minister Justin Trudeau cautioned, “These tariffs will damage the North American auto industry and could jeopardize American jobs.”
During her meeting with U.S. senators, including Lindsey Graham and Jeanne Shaheen, along with Secretary of State Antony Blinken, Joly found that many American lawmakers were concerned about the potential fallout. “American senators are thinking, ‘We don’t want this,’” she reported. When she outlined the possible impact on American consumers, many appeared both surprised and distressed.
Joly highlighted the critical role Canada plays in U.S. trade, noting that it is the leading export market for 36 U.S. states, with nearly CAD $3.6 billion (USD $2.7 billion) worth of goods and services crossing the border each day. If Trump’s tariff threats materialize, Canada might target American exports, including orange juice and specific steel products. This wouldn’t be the first retaliation against U.S. tariffs; in 2018, Canada responded with billions in duties following Trump’s increased tariffs on Canadian steel and aluminum.
An analysis by the Canadian Chamber of Commerce projected that implementing 25% tariffs could shrink Canada’s GDP by 2.6% and the U.S. GDP by 1.6%, while significantly disrupting sectors like agriculture and energy. Former finance minister Chrystia Freeland, who recently announced her candidacy for prime minister, argued for a strong retaliatory response, emphasizing the importance of painful repercussions for American exporters.
“Florida orange growers, Michigan dishwasher manufacturers, and Wisconsin dairy farmers, brace yourselves. Canada is America’s largest export market—larger than China, Japan, the U.K., and France combined. If the situation escalates, our response could be the most severe blow to the U.S. economy in history,” Freeland warned in a statement.
