TORONTO (AP) — Canadian Prime Minister Justin Trudeau said Friday that if President-elect Donald Trump follows through on a threat to impose sweeping tariffs on Canadian products, he would raise prices for Americans and hurt American businesses.
Trump has threatened to impose tariffs on products from Canada and Mexico if the countries do not stop what he called the flow of drugs and migrants across the southern and northern borders. He said that as one of his first executive orders, he would impose a 25% tax on all products entering the U.S. from Canada and Mexico.
“It is important to understand that when Donald Trump makes such statements, he intends to carry them out. There is no doubt about that,” Trudeau told reporters on Prince Edward Island in Atlantic Canada.
Trusted news and daily treats, straight to your inbox
See for yourself: The Yodel is the source for daily news, entertainment and feel-good stories.
“Our responsibility is to point out that not only would he hurt Canadians who work so well with the United States, but he would actually raise prices for American citizens and hurt American industry and business.”
Trudeau said Trump was elected because he promised to lower the cost of groceries, but now he’s talking about adding 25% to the cost of a variety of products, including Prince Edward Island potatoes.
Those tariffs could essentially blow up the North American trade pact that Trump’s team negotiated during his first term. Trudeau noted that they were able to successfully renegotiate the deal, which he called a “win-win” for both countries.
“We can work together like we did before,” Trudeau said.
Trump made the tariff threat Monday as he railed against the influx of illegal migrants, even as the numbers at the Canadian border pale in comparison to the southern border.
U.S. Border Patrol made 56,530 arrests at the Mexican border in October alone – and 23,721 arrests at the Canadian border between October 2023 and September 2024.
Trump also railed about fentanyl from Mexico and Canada, even though there are few seizures at the Canadian border compared to the Mexican border. U.S. Customs agents seized 43 pounds of fentanyl at the Canadian border last year, compared to 21,100 pounds at the Mexican border.
Canadian officials say it is unfair to lump Canada in with Mexico, but say they are willing to make new investments in border security.
“We’re going to work together to address some of the concerns,” Trudeau said. “But ultimately, it will be through many constructive conversations with President Trump that will keep us on the right track. for all Canadians.”
Mexican President Claudia Sheinbaum said Thursday she is confident a tariff war with the United States will be averted. Trump posted on social media that he had spoken with her and that she had agreed to stop unauthorized migration across the border into the United States.
When Trump imposed higher tariffs during his first term, other countries responded with their own retaliatory tariffs. For example, Canada announced billions in new tariffs against the US in 2018 in response to new taxes on Canadian steel and aluminum.
Canada is already exploring possible retaliatory tariffs on certain U.S. items if Trump follows through on his threat to impose sweeping tariffs on Canadian products, a senior official told The Associated Press this week.
A government official said Canada is preparing for any eventuality and has begun considering which items should be targeted with tariffs in retaliation. The official emphasized that no decision has been made yet. The person spoke on condition of anonymity as he was not authorized to speak publicly.
In the US, business groups quickly warned of rapidly escalating inflation. House Democrats have drafted legislation to strip away a president’s ability to unilaterally implement such drastic tariffs, warning they would likely lead to higher prices for cars, shoes, housing and groceries.
Canada is the main export destination for 36 US states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border every day.
About 60% of U.S. crude oil imports come from Canada, and 85% of U.S. electricity imports come from Canada.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the US and has 34 critical minerals and metals that the Pentagon covets and invests in for national security.
Canada is one of the most trade-dependent countries in the world, with 77% of Canadian exports going to the US.
“Canada has reason to be afraid because Trump is impulsive, often influenced by the last thing he sees on Fox News,” said Nelson Wiseman, professor emeritus at the University of Toronto. “He can leverage that by focusing on what he thinks will sound and look good to the audience, rather than what is happening or will happen.”
