Canadian Prime Minister Justin Trudeau has voiced concerns over proposed tariffs by US President-elect Donald Trump, highlighting how they could increase costs for American consumers.
During a conversation with the Halifax Chamber of Commerce, Justin Trudeau emphasized that tariffs on Canadian goods could significantly raise living expenses in the United States. Trudeau pointed out that the US imports a vast amount of resources from Canada, including crude oil, electricity, and natural gas, all of which would become more costly under a new tariff scheme. He warned that these tariffs, if implemented, could complicate relations between the two countries, given the clear intentions of the US team entering office.
Trudeau underscored the economic impact of the proposed 25% tariff on goods entering the US from Canada and Mexico, suggesting it would contradict Trump’s campaign promises to make life affordable for Americans. Economists have expressed that such measures would inevitably lead to increased prices for food, clothing, and other essentials, contradicting Trump’s pledge to provide financial relief to American families.
Additionally, Trudeau remarked on the historical context of retaliatory tariffs, citing Canada’s response in 2018 when similar measures were imposed on Canadian steel and aluminum. He highlighted how Canada had strategically targeted products like bourbon, Harley-Davidsons, and playing cards to maximize political impact. He reassured the audience that Canada’s response to any unfair tariffs would be equally deliberate and considered.
Trudeau also addressed the broader implications of being treated similarly to Mexico regarding trade and customs, particularly given the stark differences in border activities related to illegal substances. He pointed out that the US-Mexico border deals with significantly higher illegal drug seizures than the US-Canada border, stressing the need for differentiated treatment in trade discussions.
In response to Trump’s claims about subsidizing Canada heavily, Trudeau provided data showing that a significant portion of US crude oil and electricity imports come from Canada. Kirsten Hillman, Canada’s ambassador to Washington, added that despite the US having a trade deficit with Canada, energy exports play a considerable role, particularly given recent high prices. Such interdependencies underscore the complexity of imposing broad tariffs without considering economic ramifications.
As the discussion around tariffs progresses, the potential impact on US-Canada trade relations remains a significant concern. Trudeau’s comments underscore the need for strategic and thoughtful approaches to any new trade measures.
Source: Apnews
