Canadian Prime Minister Justin Trudeau said Tuesday there would be a strong response if Donald Trump imposes 25 percent tariffs on Canadian imports, after the U.S. President hinted it could come as early as February.
“Canada will respond and everything is on the table,” Trudeau said at a news conference. He said Ottawa’s response would be “strong, swift and measured” but would also be leveled against the dollar against U.S. tariffs.
The Prime Minister spoke at the Cabinet retreat to chalk out a strategy for how to deal with the new Trump administration and economic threats coming from its southern neighbour.
Trump has called for tightening our borders with Canada and Mexico to stem the flow of migrants and illegal drugs.
Hours after taking the oath of office on Monday, he told reporters that punitive tariffs against two major US trading partners could be imposed as early as February 1.
“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing large numbers of people – Canada is a very bad abuser too – allowing large numbers of people to come and get fentanyl. ,” he said. He said while signing several executive orders in the Oval Office.
Trump also signed an order on Monday directing agencies to study a number of trade issues, including deficits, unfair practices and currency manipulation.
These can pave the way for further responsibilities.
About 75 percent of Canada’s exports go to the United States, led by its energy and auto sectors.
A Canadian government source told AFP that Ottawa is considering higher tariffs on goods coming from the United States, including steel products, ceramics such as toilets and sinks, glassware and orange juice in the first phase of the tariffs, which will be Can be increased.
Trudeau warned Tuesday that the trade war will cost the United States, but “Canadians will also pay a price.”
A scenario from Scotiabank shows this could shave more than five per cent off Canadian gross domestic product, significantly increase unemployment and fuel inflation.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
