Canada threatens price hikes if Trump adds tariffs


Listen To Story Above

Canadian Prime Minister Justin Trudeau issued a stern warning about potential price increases for American consumers if President Donald Trump implements his proposed tariffs on Canadian imports.

Earlier in the day, Trump reaffirmed his commitment in the Oval Office to impose 25 percent tariffs on Canadian and Mexican goods, potentially starting February 1st. While Trump had previously suggested implementing these tariffs immediately upon taking office, the action was delayed.

The tariffs are part of Trump’s strategy to secure cooperation from Canada and Mexico in controlling illegal immigration and fentanyl trafficking across U.S. borders.

Speaking forcefully from Ottawa, Trudeau addressed the timing uncertainty of Trump’s threat, stating “whether it be back on Jan. 20th, on Feb. 1st or Feb. 15th as a Valentines Day present, or on April 1st or whenever,” Canada would respond with counter-tariffs that would increase prices “for American consumers on just about everything.”

During a news conference in Ottawa, Ontario, the outgoing Prime Minister revealed that his administration is preparing retaliatory measures. These could include not only counter-tariffs but also potentially more aggressive actions like export taxes on oil, uranium, and potash, specifically designed to increase costs for U.S. businesses and consumers if Trump initiates a trade war.

“We don’t think he wants that,” Trudeau, whose popularity has significantly declined ahead of his upcoming departure, remarked to reporters. “Everything is on the table. It would be bad for Canada, but it would also be bad for American consumers.”

The proposed tariffs have created significant concern in Canada, where economic ties with the U.S. are crucial. The trade relationship is particularly imbalanced, with Canada sending 75 percent of its exports to the U.S., while only receiving 17 percent of U.S. exports.

The daily cross-border trade amounts to approximately CAD $3.6 billion ($2.7 billion), with Canada serving as the primary export destination for 36 U.S. states.

Alberta’s Premier Danielle Smith emphasized the potential impact on American consumers, particularly regarding fuel prices, suggesting that some states could see gasoline prices rise by more than a dollar per gallon if Canadian oil imports are tariffed.

This impact could be substantial, considering that Canada supplies nearly a quarter of America’s daily oil consumption.

In response to Trump’s threats, Canada is considering retaliatory tariffs targeting specific U.S. products, including orange juice, certain steel products, and toilets.