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  • ‘Trump’s Tariff Plans As Part Of A Disruptive Tactic’, Says Justin Trudeau

‘Trump’s Tariff Plans As Part Of A Disruptive Tactic’, Says Justin Trudeau

Trudeau warns Trump’s tariff threats aim to create uncertainty, while Canada prepares for possible economic fallout.

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‘Trump’s Tariff Plans As Part Of A Disruptive Tactic’, Says Justin Trudeau

Canadian Prime Minister Justin Trudeau traveled to Florida for a dinner with President-elect Donald Trump.


In a forceful response to U.S. President Donald Trump‘s recent tariff threats, Canadian Prime Minister Justin Trudeau has criticized the move as an attempt to sow chaos and destabilize trading relations between the two nations. Trump, on January 21, signaled that his administration might impose up to 25% tariffs on Mexico and Canada, starting as early as February 1. This announcement came just days after an executive order from Trump, directing U.S. officials to review trade and border relations, with a report due by April 1. The apparent contradiction between these actions has raised concerns about the unpredictability of U.S. trade policy under Trump.

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Trudeau, while acknowledging Trump’s negotiating skills, emphasized the destabilizing impact of such tariff threats. “We know that there is always going to be a certain amount of unpredictability and rhetoric coming out from this administration,” he remarked. Trudeau suggested that Trump’s tactics were meant to keep trade partners off-balance, thus weakening their ability to negotiate effectively. He called it a deliberate effort to create uncertainty.

Mexican President Claudia Sheinbaum echoed Trudeau’s remarks, advising leaders to maintain composure and focus on signed agreements rather than get caught up in inflammatory rhetoric. Despite the tensions, Canada is preparing for potential retaliatory measures should Trump impose tariffs, including supporting Canadian businesses and citizens affected by the sanctions. Canada is also considering a list of U.S. goods that could be subject to counter-tariffs.

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The prospect of retaliatory tariffs, however, carries significant economic risks for Canada. A 2019 Bank of Canada report estimated that a 25% tariff imposed by the U.S. could cause Canada’s GDP to shrink by as much as 6%. While Trudeau’s government has pledged to respond in kind, matching tariffs dollar-for-dollar, the cost of such retaliation could be substantial for both Canadian consumers and businesses.

Mark Carney, a Liberal Party leadership candidate, described Trump’s tariff threats as “illegal” and voiced support for equal countermeasures. The Canadian dollar initially took a hit following Trump’s comments but rebounded in subsequent days, underscoring the resilience of Canada’s economy despite external pressures.

The Canadian Chamber of Commerce has urged caution in interpreting Trump’s rhetoric, noting that while the president’s comments should be taken seriously, they may not always be meant literally. Heather Exner-Pirot, a senior fellow at the Macdonald-Laurier Institute, pointed out that Trump’s tariff plans may be unfeasible, as they conflict with his broader policy goals, such as lowering the cost of living for American families.

At the provincial level, Alberta Premier Danielle Smith has broken from Trudeau’s position, arguing against threatening to cut energy exports to the U.S. or imposing export taxes. Smith warned that such actions would only raise prices for American consumers and businesses, ultimately harming both countries’ economies.

Despite the challenges and uncertainties surrounding Trump’s tariff threats, Trudeau remains optimistic about the long-term relationship between Canada and the U.S. “We’ve been here before,” he said. “Our focus is on the substance of things, where Canada and the U.S. do well when we do things together.” While preparing for potential economic fallout, Canada’s leadership is committed to maintaining a cooperative stance with its neighbor, despite the stormy political climate.

With the tariff issue likely to remain a point of contention, both nations will need to balance their immediate political pressures with long-term economic interests. As the situation develops, the outcome of these tariff threats could have significant implications not only for the U.S.-Canada relationship but for broader North American trade dynamics.

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