Trudeau says Trump would raise prices on Americans if he follows through on Canada tariff threat

AP (Toronto) Canadian Prime Minister Justin Trudeau stated on Friday that President-elect Donald Trump would be hurting American businesses and boosting prices for Americans if he implements his threat to put broad tariffs on Canadian goods.

If Canada and Mexico don’t halt what he dubbed the flow of migrants and drugs across their southern and northern borders, Trump has threatened to levy taxes on their products. As one of his first executive orders, he declared that all goods coming into the United States from Canada and Mexico would be subject to a 25% tariff.

It’s critical to realize that Donald Trump intends to follow through on his comments when he makes them. Trudeau told reporters on Prince Edward Island in Atlantic Canada that there is no doubt about it.

It is our duty to draw attention to the fact that he would not only punish Canadians, who get along so well with the United States, but he would also raise costs for Americans and undermine American commerce and industry.

Trudeau claimed that although Trump was elected on a platform of lowering grocery prices, he is now proposing to raise the price of a variety of goods, including Prince Edward Island potatoes, by 25%.

The North American trade agreement that Trump’s administration crafted during his first term might be effectively destroyed by such tariffs. They were able to successfully renegotiate the agreement, which Trudeau describes as a win-win situation for both nations.

“We can collaborate as we have in the past,” Trudeau stated.

Despite the fact that there are many more illegal migrants at the Canadian border than at the southern one, Trump threatened tariffs on Monday while ranting about the flood.

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Between October 2023 and September 2024, the U.S. Border Patrol made 23,721 arrests at the Canadian border and 56,530 at the Mexican border in October alone.

Despite the fact that there are far fewer seizures at the Canadian border than from the Mexican one, Trump again complained about fentanyl coming from both countries. Last fiscal year, U.S. customs officers found 43 pounds of fentanyl at the Canadian border, while they found 21,100 pounds at the Mexican border.

Although they claim it is unfair to group Canada with Mexico, Canadian officials say they are prepared to increase border security spending.

“We will collaborate to address some of the issues,” Trudeau stated. In the end, however, it will be my numerous genuine, productive discussions with President Trump that will keep us on the correct path for all Canadians.

President Claudia Sheinbaum of Mexico expressed her confidence on Thursday that a trade war with the United States will not break out. Trump shared on social media that she had agreed to halt illegal immigration into the US after they had a conversation.

Other nations retaliated with their own tariffs in response to Trump’s higher tariffs during his first term in office. For example, Canada responded to higher taxes on Canadian steel and aluminum in 2018 by announcing billions of new duties against the U.S.

According to a senior official who spoke to The Associated Press this week, Canada is already looking into potential retaliation tariffs on specific U.S. goods in the event that Trump fulfills his promise to put broad duties on Canadian goods.

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According to a government official, Canada has begun considering which goods to target with tariffs in retaliation and is ready for any scenario. No decision has been made, the official emphasized. Since they were not permitted to speak in public, the individual spoke under the condition of anonymity.

Business associations in the US were quick to warn about fast rising inflation. House Democrats drafted legislation to prevent a president from imposing such severe tariffs unilaterally, stating that doing so would probably result in increased prices for groceries, housing, shoes, and cars.

For 36 U.S. states, Canada is their biggest export destination. Every day, goods and services valued at around $3.6 billion Canadian (US$2.7 billion) pass the border.

Approximately 60% of the crude oil and 85% of the electricity imported into the United States come from Canada.

In addition to having 34 vital minerals and metals that the Pentagon is interested in and investing in for national security, Canada is the United States’ top foreign supplier of steel, aluminum, and uranium.

77% of Canada’s exports are sent to the United States, making it one of the most trade-dependent nations in the world.

According to Nelson Wiseman, an emeritus professor at the University of Toronto, Canada has grounds for concern because Trump is impetuous and frequently swayed by what he sees on Fox News. He can take advantage of it by focusing on what he believes the public will find appealing rather than what actually does or will occur.

The Associated Press, 2024. All rights reserved. All rights reserved. It is prohibited to publish, broadcast, rewrite, or redistribute this content without authorization.

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