Canada’s outgoing Prime Minister Justin Trudeau warned the country will have a “forceful and immediate” response if President Donald Trump follows through with his 25 percent tariff plans.
Newsweek has contacted the White House and Trudeau’s office for comment via email.
Why It Matters
Trump has said his tariffs on Canadian imports will take effect Saturday. The move threatens a major diplomatic crisis between the two allies and could have potentially devastating impacts on both countries’ economies.
What to Know
Canadian officials say they are preparing to fight back if Trump follows through with his plans to impose a 25 percent tariff.
Mark Carney, former governor of the Bank of Canada and a candidate to be the next Canadian prime minister, told the BBC the country is “going to stand up to a bully” by introducing its own tariffs.
Canada was previously said to be preparing a retaliatory move if Trump’s tariff plans take effect. This includes imposing tariffs on U.S. imports worth C$150 billion ($105 billion) and potentially shutting off energy supplies to its southern neighbor.
The U.S. is Canada’s largest trading partner, accounting for 75 percent of Canadian exports.
Canada is the largest energy supplier to the U.S., providing 98 percent of its natural gas imports and 93 percent of its electricity imports in 2020, according to Canadian government data.
Trump’s threat to impose a 25 percent tariff on goods from Mexico and 10 percent tariffs on goods from China could also take effect Saturday.
Trump indicated he may issue an exemption for Canadian and Mexican oil imports, possibly reducing the tariffs to 10 percent.
The U.S. imported almost 4.6 million barrels of oil daily from Canada in October and 563,000 barrels from Mexico, according to the Energy Information Administration.
What People Are Saying
Canadian Prime Minister Justin Trudeau posted on X, formerly Twitter, on Friday: “No one — on either side of the border — wants to see American tariffs on Canadian goods. I met with our Canada-U.S. Council today. We’re working hard to prevent these tariffs, but if the United States moves ahead, Canada’s ready with a forceful and immediate response.”
Mark Carney, speaking to BBC’s Newsnight: “President Trump probably thinks Canada will cave in. But we are going to stand up to a bully. We’re not going to back down. We’re united, and we will retaliate. [The tariffs] are going to hit growth. They’re going to move up inflation. They’re going to raise interest rates.”
President Donald Trump, speaking to reporters on Friday: “I’m probably going to reduce the tariff a little bit on that. We think we’re going to bring it down to 10 percent.”
White House Press Secretary Karoline Leavitt, at a press briefing on Friday: “The president will be implementing tomorrow a 25 percent tariff on Mexico, a 25 percent tariff on Canada, and a 10 percent tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans. These are promises made and promises kept by the president.”
Senate Democratic Leader Chuck Schumer, in a statement: “All tariffs are not created equal. Donald Trump is aiming his new tariffs at Mexico, Canada, and China, but they will likely hit Americans in their wallets. I am concerned these new tariffs will further drive up costs for American consumers. We should be focused on going hard against competitors who rig the game, like China, rather than attacking our allies. If these tariffs go into full effect, they will raise prices for everything from groceries to cars to gas, making it even harder for middle-class families to just get by.”
What Happens Next
Trump’s tariff plans are set to be enforced sometime on Saturday.
Trudeau will step down as prime minister once his ruling Liberal Party selects a new leader in March. A Canadian election will follow, though no date has been announced. It must take place by October 2025.
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