Canada prepares response to sweeping Trump tariffs

As Donald Trump took office as the 47th President of the United States on Monday, Canadians are preparing to face his promise of a 25 per cent tariff on all Canadian goods.

Shortly after his inauguration, Trump signed an executive order to look into what he called “unfair trade and currency practices” by Canada and Mexico.

Prime Minister Justin Trudeau answered back on Tuesday, saying that if Trump wants to usher in the “golden age” he promised during his inaugural address, he’ll need the critical imports that Canada provides the U.S.

“We’re there to be constructive partners,” Trudeau stated, addressing the proposed tariff start date of Feb. 1.

Trudeau met with Canada’s premiers last week to discuss their response if Trump follows through with his plan, including the possibility of counter-tariffs worth nearly $37 billion.

But Alberta Premier Danielle Smith broke rank with the other premiers last Wednesday when she said she would not support tariffs on oil exports from her province.

“Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies,” Smith said on X.

Nicolas Kenny, a history professor at Simon Fraser University, explained that much of Smith’s resistance may be due to Trudeau’s current status.

“I think a lot of it is coming from the fact that Justin Trudeau has announced his resignation, and there’s a sense that he’s that sort of made him into a lame duck prime minister who doesn’t really have much room for maneuver,” Kenny told 1130 NewsRadio. “He can’t really take any major initiatives given that he’s just kind of keeping the seat warm until a successor is chosen for him in March.”

Trump made his tariff threat as a way to influence the Canadian government to stem the flow of what he claims are illegal drugs and immigrants crossing the border.

After the Trudeau government announced a $1.9 billion plan to increase security at the southern border, Trump changed his tune and insisted the tariffs were due to a trade deficit with Canada.

Kenny said that the only thing Canadians can do is wait and see.

“The federal government, the premiers have been very proactive in reaching out to Trump. We saw Trudeau go and visit him very quickly after the election. We’ve seen premiers try to wield influence with, elected representatives in Congress, governors, you know, work their connections in that way. So there’s been a ground game,” he added.

The federal government implemented a new Canada-U.S. relations council last week, which will advise the prime minister on dealing with the tariff threat.

Members of this council included labour leaders, Indigenous representatives, and prominent politicians like former premiers Jean Charest and Rachel Notley.

Kenny said Notley’s position as a former Alberta premier represents an important voice in the midst of Danielle Smith’s resistance.

“It allows Trudeau and that council to have an interlocutor from Alberta, making sure that that perspective is around the table. And we know from Notley’s time in politics that she too is a defender of the oil industry, so she may not see eye to eye with Danielle Smith, and she may not wield as much influence as Danielle Smith, but she’ll be that voice around the table from Alberta that I think the Prime Minister is looking for here,” Kenny explained.

There’s not much historical precedent for such heavy tariffs, Kenny added, and the federal and provincial governments need to be prepared for unpredictability.

“This is a new level of animosity coming from the American administration that we’re we’re not used to dealing with here, so being prepared and prepared for that unpredictability is going to be the, the key for the Canadian government and that’s gonna be a challenge as it transitions to new leadership, but there’s not a whole lot to do about that except, you know, watch what’s happening, watch what’s unfolding, and, and try to react as quickly and efficiently as possible.”

With files from The Canadian Press.