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Trudeau: US Realizing Tariffs Ups Costs12/10 06:02
Canadian Prime Minister Justin Trudeau said Monday that Americans "are
beginning to wake up to the real reality that tariffs on everything from Canada
would make life a lot more expensive" and said he will retaliate if Donald
Trump goes ahead with them.
TORONTO (AP) -- Canadian Prime Minister Justin Trudeau said Monday that
Americans "are beginning to wake up to the real reality that tariffs on
everything from Canada would make life a lot more expensive" and said he will
retaliate if Donald Trump goes ahead with them.
Trump later responded by calling Canada a state and Trudeau the governor.
Speaking at an event put on by the Halifax Chamber of Commerce, Trudeau also
said dealing with Trump will be "a little more challenging" than the last time
because Trump's team is coming in with a much clearer set of ideas of what they
want to do right away than after his first election win in 2016.
The U.S. president-elect has threatened to impose a 25% tax on all products
entering the U.S. from Canada and Mexico unless they stem the flow of migrants
and drugs.
"Trump got elected on a commitment to make life better and more affordable
for Americans, and I think people south of the border are beginning to wake up
to the real reality that tariffs on everything from Canada would make life a
lot more expensive," Trudeau said.
On the weekend, Trump appeared in an interview with NBC's "Meet the Press,"
where the president-elect said he can't guarantee that his promised tariffs on
key U.S. foreign trade partners won't raise prices for American consumers.
"Let's not kid ourselves in any way, shape or form, 25% tariffs on
everything going to the United States would be devastating for the Canadian
economy," Trudeau said.
"It would also, however, mean real hardship for Americans as well. Americans
import 65% of their crude oil from Canada, significant amounts of electricity.
Just about all the natural gas exported from Canada goes to the United States.
They rely on us for steel and aluminum. They rely on us for a range of
agriculture imports. All of those things would get more expensive."
Trump seemed to respond to Trudeau's comments with a post on social media
late Monday, in which he noted Trudeau's recent dinner at Mar-a-Lago where some
said Trump joked about Canada becoming the 51st state.
"It was a pleasure to have dinner the other night with Governor Justin
Trudeau of the Great State of Canada. I look forward to seeing the Governor
again soon so that we may continue our in depth talks on Tariffs and Trade, the
results of which will be truly spectacular for all! DJT," Trump posted on Truth
Social.
If Trump makes good on his threat to slap 25% tariffs on everything imported
from Mexico and Canada, the price increases that could follow will collide with
his campaign promise to give American families a break from inflation.
Economists say companies would have little choice but to pass along the
added costs, dramatically raising prices for food, clothing, automobiles,
alcohol and other goods.
The Produce Distributors Association, a Washington trade group, has said
tariffs will raise prices for fresh fruit and vegetables and hurt U.S. farmers
when the countries retaliate.
"We will of course, as we did eight years ago, respond to unfair tariffs,"
Trudeau said.
Trudeau said his government is still mulling over "the right ways" to
respond, referencing when Canada put billions of new duties in 2018 against the
U.S. in a tit-for-tat response to new taxes on Canadian steel and aluminum.
Many of the U.S. products were chosen for their political rather than
economic impact. For example, Canada imports just $3 million worth of yogurt
from the U.S. annually and most of it comes from one plant in Wisconsin, the
home state of then-Republican House Speaker Paul Ryan. That product was hit
with a 10% duty.
"It was the fact that we put tariffs on bourbon and Harley-Davidsons and
playing cards and Heinz ketchup and cherries and a number of other things that
were very carefully targeted because they were politically impactful to the
president's party and colleagues," Trudeau said.
Trudeau said when Trump says things he means them but they also know Trump
is trying to insert uncertainty and "a bit of chaos" into democracies.
"One of the most important things for us to do is not freak out, not to
panic," Trudeau said.
"Knowing these would be absolutely devastating means we have to take them
seriously but it does mean we have to be thoughtful and strategic and not going
around making our opponents arguments for him but making our arguments in a
significant and united way."
Canadian officials have said it is unfair to lump Canada in with Mexico.
U.S. customs agents seized 43 pounds of fentanyl at the Canadian border last
fiscal year, compared with 21,100 pounds at the Mexican border.
Most of the fentanyl reaching the U.S. -- where it causes about 70,000
overdose deaths annually -- is made by Mexican drug cartels using precursor
chemicals smuggled from Asia.
On immigration, the U.S. Border Patrol reported 1.53 million encounters with
irregular migrants at the southwest border with Mexico between October 2023 and
September 2024. That compares to 23,721 encounters at the Canadian border
during that time.
Trump has also claimed the U.S. is "subsidizing Canada to the tune of over
$100 billion a year."
On America's trade deficit Canada's ambassador to Washington, Kirsten
Hillman, told the AP U.S. had a $75 billion trade deficit with Canada last year
but noted a third of what Canada sells into the U.S. are energy exports and
prices have been high.
About 60% of U.S. crude oil imports are from Canada, and 85% of U.S.
electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium
to the U.S. and has 34 critical minerals and metals that the Pentagon is eager
for and investing for national security.
Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services
cross the border each day. Canada is the top export destination for 36 U.S.
states.
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