VANCOUVER, British Columbia (AP) — On Sunday, Canadian Prime Minister Justin Trudeau highlighted the potential negative effects of President-elect Donald Trump’s proposed tariffs on Canadian imports. He pointed out that the attention surrounding Trump’s rhetoric about Canada potentially becoming the “51st state” was overshadowing the more pressing issue of how the tariffs would affect U.S. consumers.
Trump has repeatedly threatened to impose a 25% tariff on all imports from Canada, including key resources such as steel and aluminum. In an interview with MSNBC, Trudeau remarked, “The 51st state, that’s not going to happen.” He continued by emphasizing the economic consequences of such tariffs, particularly their impact on American consumers. “No American wants to pay 25% more for electricity or oil and gas coming in from Canada,” he stated. Trudeau urged Americans to consider the tangible consequences of these tariffs on the cost of essential goods.
Trump has also suggested that merging Canada with the U.S. could eliminate tariffs and reduce taxes, framing it as a potential win for U.S. consumers. However, Trudeau criticized this approach, asserting that the president-elect’s tactic of creating uncertainty through economic threats was misguided. Trudeau also rejected Trump’s claim that the U.S. trade deficit with Canada was a form of subsidy, calling it an oversimplification.
If Trump follows through with his tariff threats, Canadian officials have warned that retaliatory tariffs could be imposed on American goods such as orange juice, toilets, and steel products. During Trump’s first term, Canada had already retaliated against U.S. tariffs on Canadian steel and aluminum by imposing tariffs on American products, including bourbon, Harley-Davidson motorcycles, and playing cards.
Trudeau remarked on Trump’s efforts to protect American workers, suggesting that the imposition of tariffs would harm rather than help U.S. consumers. “These tariffs are things that are going to hurt them,” he emphasized, highlighting the potential for higher prices and economic disruption.
Trump has previously claimed that the U.S. no longer needs oil or other resources from Canada. However, data from the United States Energy Information Administration reveals that nearly a quarter of the oil consumed daily in the U.S. comes from Canada, with the energy-rich province of Alberta exporting 4.3 million barrels of oil per day.
In addition to the trade dispute, Trump has expressed concerns over security at the Canada-U.S. border. He has suggested that if Canada improves border security, the U.S. might reconsider its tariff threat. Trudeau, however, pointed out that less than 1% of illegal immigration and fentanyl entering the U.S. comes from Canada, defending the country’s border management.
Amid these ongoing tensions, Trudeau has vowed to increase border security spending and address Trump’s concerns in an attempt to prevent further escalation of the tariff threat. With the new challenges posed by Trump’s administration and his own political difficulties, Trudeau’s resignation announcement came as he prepares to step down in March, when the Liberal Party will elect a new leader.
For additional context on Canada-U.S. trade relations and their economic impacts, visit World Trade Organization.
