### Trudeau Warns Trump’s Proposed Tariffs Could Harm Both Countries’ Economies

Canadian Prime Minister Justin Trudeau issued a stern warning on Friday regarding President-elect Donald Trump's plan to impose hefty tariffs on Canadian and Mexican products. Trudeau emphasized that such a move would not only hurt Canadian workers but also raise prices for American consumers and negatively impact U.S. businesses.

“If President Trump imposes a 25% tax on all products entering the U.S. from Canada and Mexico," Trudeau stated during a press conference in Prince Edward Island, "it would result in higher costs for American citizens and harm the U.S. industry.”

Trump’s proposed tariffs come as part of his broader strategy to stop illegal drug and migrant flows across the U.S. borders. Although Trump primarily pointed to issues at the southern border, Trudeau noted that the numbers at the Canadian border are significantly lower in comparison. For instance, U.S. Border Patrol reported 23,721 arrests at the Canadian border between October 2023 and September 2024, whereas 56,530 arrests occurred at the Mexican border just in October.

Trump also raised concerns about fentanyl trafficking, although data shows U.S. customs agents seized 21,100 pounds of fentanyl at the Mexican border compared to just 43 pounds at the Canadian border last fiscal year.

In light of these threats, Canadian officials are preparing potential retaliatory tariffs on U.S. items, similar to their response in 2018 when Canada imposed new duties following U.S. tariffs on Canadian steel and aluminum. Though no decisions have been made, a senior official disclosed that discussions are underway to identify which American products might be targeted.

Business groups in the U.S. have already voiced concerns about the potential for escalating inflation should these tariffs come into effect. The House Democrats are drafting legislation to limit the president's power to unilaterally apply such drastic tariffs, warning of potential price increases on essential goods, including autos and groceries.

Canada, a critical trade partner for the U.S., is the top export destination for 36 American states, with nearly $2.7 billion worth of goods and services crossing the border daily. Moreover, Canada is the largest foreign supplier of steel, aluminum, and uranium to the U.S. It also holds 34 critical minerals and metals that are vital for U.S. national security and are of significant interest to the Pentagon.

Prime Minister Trudeau remains hopeful about resolving the situation through "constructive conversations" with Trump to ensure a mutually beneficial outcome for both nations. Meanwhile, Mexican President Claudia Sheinbaum expressed confidence that a potential tariff war with the U.S. could be avoided, noting her agreement with Trump to curb unauthorized migration.