Canadian premiers are meeting with Prime Minister Justin Trudeau in Ottawa to address the imminent threat of President-elect Donald Trump’s proposed 25% tariffs on all Canadian imports. The tariffs, which Trump aims to enforce shortly after taking office on January 20, could destabilize the Canadian economy by shaving billions off GDP and endangering key industries.
Ontario Premier Doug Ford has warned that these measures could result in massive job losses, potentially affecting 500,000 Ontarians and necessitating billions in economic stimulus. Other leaders, including Alberta Premier Danielle Smith, have stressed the critical role of Canadian oil exports in North American energy security. However, their appeals, including Smith’s direct discussion with Trump, have yet to yield any indication of a change in his stance.
Ottawa has prepared a robust border security plan to address Trump’s concerns over drugs and migration. Measures include deploying additional border and RCMP personnel, increasing drone and helicopter surveillance, and creating new K9 units to inspect for drugs like fentanyl. Finance Minister Dominic LeBlanc has indicated that if Trump’s tariffs proceed, Canada is ready to retaliate with tariffs on U.S. goods, including Florida orange juice, Kentucky bourbon, and Pennsylvania steel.
In the weeks leading to Trump’s inauguration, Canadian leaders have launched a public relations campaign across the U.S. to highlight the intertwined nature of the two economies. These efforts have included ad campaigns and high-level discussions emphasizing the mutual benefits of trade and the potential fallout of a trade war.
The situation comes as Trudeau, who announced his resignation last week, prepares to lead the country through a challenging transition period until a new Liberal leader is chosen in March. In the interim, Canada is mobilizing business and labor groups to collaborate on strategies to mitigate the economic impact and prepare for a broader review of trade relations under the new U.S. administration.