Trudeau and Trump Clash Over Tariff Threats: Impact on U.S. and Canadian Economies
ICARO Media Group
### Trudeau Warns Against Trump’s Tariff Plan, Cites Potential Harm to Both U.S. and Canadian Economies
Canadian Prime Minister Justin Trudeau warned on Friday that U.S. President-elect Donald Trump’s proposed tariffs on Canadian goods could have detrimental effects on both American consumers and businesses. Trump has proposed imposing a 25% tariff on products from Canada and Mexico if these countries do not take stronger actions to curb drug trafficking and unauthorized migration across their borders.
Speaking to reporters in Prince Edward Island, Trudeau emphasized that Trump appears committed to following through on his statements, which could significantly increase costs for American citizens. “It is important to understand that Donald Trump, when he makes statements like that, he plans on carrying them out. There's no question about it,” Trudeau remarked.
Trudeau argued that such tariffs would harm Canadian and American economies alike, noting that the increased costs would be felt by American consumers in the form of higher prices for everyday items, including potatoes from Prince Edward Island. This potential economic strain comes in stark contrast to Trump’s campaign promise to reduce the cost of goods.
These tariffs also threaten the stability of the North American trade agreement, which was successfully re-negotiated during Trump’s first term and is considered beneficial for both countries. “We can work together as we did previously,” Trudeau asserted, highlighting the cooperative spirit that helped achieve the revised trade deal.
Trump reiterated his tariff threat while addressing the issue of unauthorized migrants. Although the number of arrests at the Canadian border is significantly lower than those at the Mexican border, fatigue over northern border security was cited. From October 2023 to September 2024, U.S. Border Patrol recorded 23,721 arrests at the Canadian border, compared to 56,530 at the Mexican border in October alone.
In addition, Trump expressed concerns about drug trafficking, particularly fentanyl. However, the volume of fentanyl seized at the Canadian border was much less significant compared to the Mexican border. Last fiscal year, U.S. customs agents confiscated 43 pounds of fentanyl at the Canadian border compared to 21,100 pounds at the Mexican border.
Canadian officials argue that equating Canada with Mexico in terms of border security and drug trafficking is unfair, though they remain open to enhancing their border measures. Trudeau assured that constructive dialogue with Trump could help address these concerns without resorting to damaging tariffs. “We're going to work together to meet some of the concerns,” he said, promising efforts to maintain beneficial relations for Canadians.
Mexican President Claudia Sheinbaum shared a similar optimism on Thursday, stating her belief that a tariff war with the U.S. could be avoided. Trump indicated on social media that Sheinbaum had agreed to initiatives to curb unauthorized migration at the U.S.-Mexico border.
Reflecting on previous experiences, Trudeau recalled how Canada responded with billions in retaliatory tariffs in 2018 after Trump imposed higher duties on Canadian steel and aluminum. Canada is already considering potential countermeasures should Trump act on his latest tariff threats, according to a senior official who spoke on condition of anonymity. The official noted that no final decision has been made, but discussions on which U.S. items to target are underway.