Trudeau warns Canada must prepare for Trump’s looming trade war

Prime Minister Justin Trudeau urged Canada to take a tactical and strategic approach in dealing with President Donald Trump’s threats to impose heavy tariffs on all Canadian imports.

Speaking at an economic summit in Toronto on Friday, Trudeau emphasized the need for cooperation with the U.S. while also working to eliminate internal trade barriers and strengthen relationships with other nations.

“This is a moment,” Trudeau said. “This is a time in our country’s history that really matters.”

Trump’s vision of Canada as the 51st state

In a surprising revelation, Trudeau reportedly told business leaders that Trump’s comments about making Canada the 51st U.S. state are “a real thing.” According to Canada’s public broadcaster CBC, Trudeau said Trump believes the easiest way to reshape trade relations is by absorbing Canada into the U.S. His remarks were abruptly cut short when the microphone malfunctioned.

30-day pause on tariffs offers Canada a chance to respond

Trump recently agreed to a 30-day delay on his planned 25 percent tariffs on imports from Mexico and Canada, along with an additional 10 percent tariff on Canadian oil, natural gas, and electricity. He initially threatened the tariffs to pressure both countries into stronger action against illegal immigration and fentanyl smuggling, while also aiming to boost U.S. manufacturing.

Trudeau said Canada will use the extension to highlight its increased border security spending, which includes a 1.3 billion Canadian dollar plan for drones, helicopters, more border guards, and a joint task force. He also announced plans to appoint a fentanyl czar to serve as the primary liaison between Canada and the U.S., despite the fact that less than one percent of illegal fentanyl and border crossings into the U.S. originate from Canada.

Canada prepares for possible tariff showdown

Trudeau warned that if Trump reinstates the tariffs after 30 days, Canada must be ready to act decisively. He emphasized the importance of supporting Canadians through potential economic hardships caused by the tariffs.

“We need to be ready to respond robustly,” he said. “We also have to be ready to support Canadians through the responses we’re giving and through a difficult time of tariffs.”

Canada had prepared a retaliatory response, planning 25 percent tariffs on 155 billion Canadian dollars worth of American goods.

Business leaders call for bold trade action

At the summit, Candace Laing, president of the Canadian Chamber of Commerce, stressed the importance of internal trade reform and trade diversification.

“It’s clear that we can’t just tinker around the edges with incremental steps right now,” she said. “We’ve got to be bold so that businesses and communities can pivot to be more resilient and less reliant on what happens in the U.S.”

The summit, hosted by Canada’s newly established advisory council on U.S. relations, brought together business and labor leaders, Indigenous representatives, and public policy experts. Several federal cabinet ministers were also in attendance.

Businesses seek government relief in case of tariffs

Dennis Darby, president of Canadian Manufacturers and Exporters, urged the government to provide direct relief, tax breaks, or wage subsidies if tariffs are imposed, warning that businesses and workers would need urgent support.

With the 30-day deadline looming, Canada is now in a race to solidify its trade strategy before Trump decides whether to push forward with his aggressive tariff policies.