OTTAWA: Canadian Foreign Minister Mélanie Joly has issued a stark warning to the United States, warning that American consumers will bear the brunt of a “Trump tariff” if President-elect Donald Trump follows through on his threat of impose a 25% tariff on all Canadians. goods.
Joly’s comments came after a meeting with U.S. senators in Washington on Friday, during which she emphasized Canada’s willingness to retaliate by exerting maximum pressure on the United States.
“If we have to fight back, we will. And the Americans will discover Trump’s tariffs,” said Joly, emphasizing that Canada is well organized to respond effectively. However, she added that no retaliatory measures would be taken until Ottawa became aware of the details of Trump’s executive order.
Trump has already threatened to impose drastic tariffs on Canada, as well as Mexico and other trading partners. The move has sparked uncertainty over whether it is a serious policy proposal or a negotiating tactic.
Despite the possibility of higher tariffs, Trump downplayed the risk of higher inflation, insisting that Americans will soon realize it.
Joly confirmed that Canada would impose a first round of retaliatory measures, and that other rounds would follow if Trump moves forward with his tariffs.
Potential targets for retaliation include U.S. exports, including orange juice, toilets and some steel products. Canada’s trade retaliation would mirror the response it mounted during Trump’s first term when tariffs were imposed on Canadian steel and aluminum.
The looming threat of tariffs could have significant repercussions for both countries. The United States and Canada have highly integrated economies, particularly in sectors such as automobile manufacturing, where parts frequently cross the border multiple times before final assembly.
A 25% tariff could disrupt these industries, negatively impact the North American auto sector and potentially put American jobs at risk.
Prime Minister Justin Trudeau also warned that such tariffs would hurt the North American auto industry. “These tariffs will harm the North American auto industry and put American jobs at risk,” he said.
Joly’s visit to Washington included meetings with US Senators Lindsey Graham, James Risch, Jeanne Shaheen, John Thune and outgoing US Secretary of State Antony Blinken.
According to Joly, many U.S. lawmakers were surprised and concerned upon learning of the potential impact on the U.S. economy, with some expressing that they did not want such tariffs.
Canada is a key trading partner for the United States, with 36 U.S. states counting on Canada as their primary export destination. More than C$3.6 billion (US$2.7 billion) worth of goods and services cross the border every day. Joly noted that many Americans are unaware of the essential role Canada plays in their economy.
A tariff of 25% could have significant economic consequences. An analysis by the Canadian Chamber of Commerce suggests this could reduce Canada’s GDP by 2.6% and that of the United States by 1.6%, disrupting sectors such as agriculture and energy.
Former Canadian Finance Minister Chrystia Freeland, currently a candidate for prime minister, warned that Canada’s response to tariffs would be just as forceful.
“If pushed, our response will be the biggest trade blow the American economy has ever suffered,” Freeland wrote in the Toronto Star, predicting significant fallout for American industries such as Florida orange growers, dishwasher manufacturers in Michigan and dairy farmers in Wisconsin.
