TORONTO – A “strong, national response” is needed to Donald Trump’s threats that will materialize in a few days, when the president-elect enters the Oval Office of the White House: 25% tariffs on all Canadian goods arriving in the United States. In an attempt to find that “strong, national response”, Prime Minister Justin Trudeau (who is on his way to resign, when the Liberal Party will have its new leader) met with Canadian premiers in Ottawa today to seek a common strategy. “None of us wants to see tariffs erode a successful partnership between Canada and the United States” Trudeau wrote on Twitter X, before the meeting. “But we will be ready with a strong, national response if we need one”.
Ontario Premier Doug Ford, who had urged Trudeau to meet the premiers in person, said that while an embargo on energy and critical mineral exports to the United States is the last thing he wants to see (just yesterday Ford himself relaunched his “Fortress Am-Can” plan to strengthen the Canada-U.S. partnership against China, especially on critical minerals), he said Canada should not rule out any means of inflicting economic damage on the United States if the tariff dispute escalates.
Canada, Ford said, will need “tough retaliatory tariffs to defend the country”. And he added: “When they attack our country, when they attack our people, when they attack the jobs of working Canadians, we cannot sit back and let them continue to attack. We have to respond with every single tool we have in our toolbox and that is the message to the premiers today”.
As he spoke, Ford wore a “Canada Is Not For Sale” hat (in reference to Trump’s idea of making it the 51st US state). And he advertised it, too, with a post (here below, the screenshot) on X Twitter: “Thank you Liam and Emma from Jackpine for the fantastic hat. I was proud to wear it this morning to deliver the message that we need to put country first. Everyday Canadians are stepping up, united and proud. As the hat says, Canada is not for sale. Pick up your own hat today!” wrote Ford, adding a link to the website where the same hat is on sale for $40.
Alberta Premier Danielle Smith, who met with Donald Trump in her home in Mar-a Lago, Florida, in recent days, had already highlighted the need to “emphasize the mutual importance of the energy relationship between the United States and Canada”: Smith, in short, is not in favor of blocking energy exports to the United States and has warned Ottawa against this retaliatory move. “Oil and gas are owned by the provinces, primarily Alberta, and we will not tolerate this” Smith had previously said.
Saskatchewan Premier Scott Moe also rejected the idea of limiting Canadian energy and agriculture exports to the United States.
Newfoundland and Labrador Premier Andrew Furey said Canada needs a “strong” and “proportionate response” to the tariffs if Trump were to go ahead. “I’ve always said that we have to be very united, very strategic and very proportionate in how we respond to any tariffs from the United States” Furey said today in Ottawa.
Quebec Premier Francois Legault also said that retaliatory tariffs are not the first choice, but if Trump imposes tariffs on Canada, then a similar plan should be prepared.
TEH CALL FROM CANADIAN BUSINESSES
Meanwhile, Canadian manufacturers and exporters have called for “urgent action” to protect the manufacturing sector in a letter to Trudeau and federal party leaders. The group, which represents more than 2,500 companies, wants the government to provide short-term tariff relief, investment incentives and supply chain support if Trump follows through on his threat. “If U.S. tariffs proceed, they will present an immediate and severe risk to thousands of businesses and workers across the country” said Dennis Darby, president and CEO of CME (read here the whole statement and the letter to PM and federal party leaders). “Without swift and targeted government action, these tariffs will devastate investment, disrupt supply chains and weaken Canada’s industrial base,” he added.
Canadian businesses are also increasingly concerned about the potential impact of tariffs. The Canadian Federation of Independent Business (CFIB) has warned that a 25 percent tariff imposed by the United States and any potential retaliatory tariffs from Canada would force two-thirds of small businesses to raise prices. “A trade war would be disastrous for both Canadian small businesses and consumers. We need to ensure that as governments face the tariff threat with their American counterparts, they must also stay focused on keeping Canadian businesses competitive at home” said Corinne Pohlmann, Executive Vice-President of Advocacy. “The solution is a no-brainer. This is an SOS call to all governments: reduce red tape, eliminate internal trade barriers, and ease the tax burden on small businesses”.
New CFIB data found that a strong majority (82%) of businesses would be impacted by tariffs in some way. The U.S. is Canada’s largest trading partner, with over half (51%) of small businesses directly involved in either importing from or exporting to the U.S. and this does not include thousands more that rely on suppliers or customers that are trading with the U.S. Overall, businesses expect to face limited inventory or product availability and a need to find alternative markets or suppliers if tariffs are imposed.
CFIB sent a letter to all premiers earlier this week, expressing concerns over the tariff threat and providing recommendations. To address the impact of a potential tariff on Canadian goods, a strong majority of business owners (62%) agree that Canadian governments must reduce the tax burden, with an equal percentage supporting the strengthening of border security measures to address U.S. concerns. Governments must also take bold action on interprovincial trade.
“It’s ridiculous – Pohlmann concluded – that it’s still easier for Canadian small firms to do business overseas or across the border than within their own country. Now is the time for governments to step up and support Canada’s small businesses so they can be more productive and competitive in the face of tariff threats”.
In the pic above, Doug Ford with the hat “Canada is not for sale” (screenshot from CPAC – YouTube)
