US President-elect Donald Trump announced plans to impose a 25% tariff on goods from Canada and Mexico, citing immigration and drug trafficking concerns. The announcement sent shockwaves through Canada’s economy and government.
Canada’s Response: Emergency Meeting Called
Canadian Prime Minister Justin Trudeau immediately called an emergency meeting with provincial leaders to devise a united response.
“We must address this challenge together to protect Canada’s economy,” said Trudeau, emphasizing collaboration across provinces.
Economic Impact of Tariffs
Experts warn that a 25% tariff could devastate Canada’s economy, deeply reliant on trade with the US. In 2023, nearly CAD 600 billion worth of goods were exported to the US.
Leaders and Experts Weigh In
- Support for Trump’s Concerns:
Alberta Premier Danielle Smith backed Trump’s concerns over illegal activities but urged collaboration to avoid tariffs. - Criticism of Trump’s Claims:
Economists and journalists dismissed Trump’s claims on drugs and immigration as exaggerated.
A Call for Action
The Canadian Chamber of Commerce urged a tougher stance in negotiations with the US. “It’s time to stand firm,” said Candace Laing, head of the chamber.
Potential Trade War Looms
With provincial leaders calling Trump’s threats “unfair,” Ontario Premier Doug Ford warned of potential retaliation, stating, “We may have no choice.”
