Prime Minister Justin Trudeau says that incoming U.S. president Donald Trump is trying to distract from how costly his tariffs will be for American consumers by talking about making Canada the 51st state.
Trudeau made the comments in an interview on CNN late Thursday while in Washington, where he attended the funeral for the late U.S. president Jimmy Carter. He did not meet with Trump during his trip south of the border.
B次元官网网址(President-elect) Trump, whoB次元官网网址檚 a very skillful negotiator, is getting people to be somewhat distracted by that conversation, to take away from the conversation around 25 per cent tariffs on oil and gas and electricity and steel and aluminum and lumber and concrete,B次元官网网址 Trudeau said.
B次元官网网址淓verything the American consumers buy from Canada is suddenly going to get a lot more expensive if he moves forward on these tariffs.B次元官网网址
Trump has threatened to slap 25 per cent tariffs on imports immediately after he gets into office. Trudeau confirmed Canada will respond with retaliatory measures, just as it did in 2018.
Trudeau declined to outline the specifics of CanadaB次元官网网址檚 response. A senior government official confirms Ottawa is looking to target American steel, ceramics, plastics and orange juice with retaliatory tariffs.
The official said Ottawa has made no decisions yet on retaliation and is not prepared to share the full draft list of items itB次元官网网址檚 considering for retaliatory tariffs.
The selective release of certain retaliation plans comes just a week and a half before TrumpB次元官网网址檚 inauguration. Trudeau and the premiers are set to meet in Ottawa next Wednesday to discuss CanadaB次元官网网址檚 response plan, including retaliatory tariffs.
Trump has threatened to impose 25 per cent across-the-board tariffs on imports from Canada and Mexico as one of his first actions after he is sworn in on Jan. 20.
Conservative Leader Pierre Poilievre said at a news conference in Ottawa Thursday that Canada should not consider making oil and gas part of its retaliatory response.
B次元官网网址淭he reality is putting Canadian tariffs on American energy wouldnB次元官网网址檛 do very much because they buy a hell of a lot more oil and gas from us than we do from them,B次元官网网址 he said.
Experts said that while Canada is right to signal that itB次元官网网址檚 prepared for a fight, it would lose a wider trade war and risk escalation if Ottawa threatened similar across-the-board tariffs.
Laura Dawson, a trade expert and executive director of the Future Borders Coalition, said Canada has a lot of economic exposure and tariffs are ultimately paid by consumers and importers.
B次元官网网址淏y leaking or sharing or hinting about whatB次元官网网址檚 on the list, itB次元官网网址檚 trying to signal to the White House that Donald TrumpB次元官网网址檚 tariffs will be costliest to Americans,B次元官网网址 she said.
CBC B次元官网网址 first reported this week that a draft list of potential tariff targets was circulating among a small group of top officials in Prime Minister Justin TrudeauB次元官网网址檚 government - one that includes orange juice from Florida.
B次元官网网址淭he strategy that trade officials take when devising these retaliation lists is that you want to find products that are iconic, that will be recognizable,B次元官网网址 Dawson said.
B次元官网网址淭hatB次元官网网址檚 why they pick things like orange juice because itB次元官网网址檚 something that people can easily understand, and itB次元官网网址檚 something thatB次元官网网址檚 localized to a region that Trump cares a great deal about, and thatB次元官网网址檚 Florida voters.B次元官网网址
But she also said Canada canB次元官网网址檛 slap tariffs on items with surgical precision, since itB次元官网网址檚 done by product categories. Ottawa can levy tariffs on orange juice, but not something so specific as Minute Maid products or orange juice from Florida - not without also hiking prices on juice from California and other states.
Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, said floating targeted items is a better move than making a blanket threat of across-the-board tariffs, which could invite escalation and kick off a trade war Canada couldnB次元官网网址檛 win.
B次元官网网址淵ou never want to get into a full competition with the U.S. Treasury,B次元官网网址 he said. B次元官网网址淭he scope and scale of their market, their depth of internal trade is a very different economy than the one Canada has, which is premised largely on import/export trade. WeB次元官网网址檙e not going to win if itB次元官网网址檚 a pure war of attrition.B次元官网网址
When asked to respond to Canada preparing its retaliatory tariff list, the Trump team said the tariffs are in the best interest of U.S. consumers.
B次元官网网址淧resident Trump has promised tariff policies that protect working Americans from the unfair practices of foreign companies and foreign markets,B次元官网网址 said Brian Hughes, a spokesperson for the Trump-Vance transition team.
B次元官网网址淎s he did in his first term, he will implement economic and trade policies to make life affordable and more prosperous for our nation, while simultaneously levelling the playing field for American manufacturers.B次元官网网址
Canada announced in December a $1.3-billion plan to beef up border security in response to TrumpB次元官网网址檚 tariff threats, but that has not deterred Trump, who doubled down on his rhetoric this week.
Canada fought back against U.S. steel and aluminum tariffs during TrumpB次元官网网址檚 first term by targeting specific American products like playing cards, ketchup and bourbon to put political pressure on Trump and key Republicans.
Holmes said Canada needs to present TrumpB次元官网网址檚 tariff threat as a B次元官网网址渢ax on everyday AmericansB次元官网网址 and target specific supply chains or states that will be critical to Trump in the midterm elections in two years time.
But the midterms, set for November 2026, also give Trump a long runway. The U.S. is still bearing some of the costs of tariffs from TrumpB次元官网网址檚 first term, such as those levied on Chinese imports which President Joe Biden didnB次元官网网址檛 remove.
B次元官网网址淭hey can go deep, they can go long. ItB次元官网网址檚 really how much the American consumer is willing to tolerate in terms of the affordability prices theyB次元官网网址檙e facing because this will up costs,B次元官网网址 Holmes said.