Toronto: The North American trade war formally began on Saturday night with Canadian Prime Minister Justin Trudeau announcing 25% tariffs on $155 billion worth of tariffs of American good coming into the country.
That retaliatory measure came after the Administration of US President Donald Trump followed through on the threat of 25% tariffs on Canadian imports (with the exemption of energy products which will face a 10% tariff). A similar tariff was also placed on Mexico and 10% of additional tariffs on imports from China.
Addressing a press conference in Ottawa on Saturday night, Trudeau first spoke directly to Americans about the close relationship the two nations have enjoyed. Then he announced that Ottawa will impose a 25% tariff on $30 billion of American imports beginning on Tuesday, when the US levy goes into force, with a similar tariff on $ 125 billion worth of American goods in 21 days.
“We don’t want to be here, we didn’t ask for this, but we will not back down in standing up for Canadians,” he said, adding there will also be non-tariff measures implemented.
He also called for a Team Canada approach and for national unity during the crisis. “In this moment, we must pull together,” he said.
The White House executive order was communicated to Ottawa earlier on Saturday, and Trudeau held meetings with his Cabinet and provincial premiers and spoke to Mexican President Claudia Sheinbaum, prior to making the announcement.
The executive order also warns of further escalation, as it stated if Canada were to retaliate “the President may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action”.
Trump’s rationale for the tariffs is the flow of the dangerous drug fentanyl and illegal immigration from both its southern and northern borders.
Canada has argued that flow from the north into America is a fraction of that from the south. But, it announced a slew of measures to enhance border surveillance. “We have one of the strongest, most secure borders in the world,” Trudeau said, adding Canada could do better as fentanyl also had a devastating effect on Canadians.
He said he has been unable to reach Trump since the inauguration but hoped to speak with him “some time soon”.
This trade crisis has broken out while Canada’s Parliament remains prorogued till March 24, after Trudeau announced his intent to resign once a new leader of the ruling Liberal Party is selected. That process is scheduled to conclude on March 9. Opposition parties have demanded the House of Commons meet immediately given the current situation.
Conservative Party leader Pierre Poilievre said they condemned “President Trump’s massive, unjust and unjustified tariffs on Canada’s already weak economy”. He demanded the ruling party put “aside their partisan interests and recall Parliament now to pass a Canada First Plan” that would include “dollar-for-dollar” retaliatory tariffs “carefully aimed at maximizing impact on American companies while minimising impact on Canadian consumers”.
