As President-elect Donald Trump’s inauguration looms, Canada is preparing for the potential economic fallout from his proposed tariffs on all Canadian imports, with Prime Minister Justin Trudeau saying that “nothing is off the table” in response, The Associated Press reports.
The move comes as Trump has threatened a 25% tariff on all Canadian goods and has said that he will use economic coercion to get Canada to become the 51st state.
Following a five-hour meeting with provincial premiers in Ottawa, Trudeau emphasized the need for a unified national response, ensuring no single region disproportionately bears the burden
Ontario Premier Doug Ford, echoing the call for unity, asserted that “retaliatory tariffs need to be hard,” while wearing a hat proclaiming “Canada Is Not For Sale.”
The potential economic pain of Trump’s tariffs was highlighted by Canada’s Energy Minister Jonathan Wilkinson, who warned US lawmakers that such measures would result in higher prices and job losses for Americans.
Trump continues to characterize the US trade deficit with Canada as a subsidy. Canada is the top export destination for 36 US states, with nearly $3.6 billion Canadian ($2.7 billion USD) worth of goods and services crossing the border daily.
While some have suggested halting energy shipments to the US as a response, this idea was met with opposition from Alberta Premier Danielle Smith. In a statement posted on X, Smith affirmed that Alberta “will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products.” She further added that Alberta could not fully support the federal government’s plans while these threats persist. Alberta currently exports 4.3 million barrels of oil a day to the US, a significant portion of the 20 million barrels per day the US consumes.
Meanwhile, Quebec Premier François Legault was pressed about potentially halting hydroelectric or aluminum shipments to the US, but did not offer an immediate answer.
Beyond economic considerations, Ottawa announced plans to bolster border security. Public Safety Minister David McGuinty said the government will deploy 60 new drones and two new helicopters to the Canada-US border. This move comes on the heels of the Liberal government’s pledge of nearly $1 billion for border upgrades, made after Trump raised concerns about the flow of migrants and illegal drugs into the US.
