Canada is preparing for what could escalate into the most significant trade war with the United States in decades, as President-elect Donald Trump plans to impose a 25 per cent tariff on Canadian imports.
Foreign Minister Mélanie Joly, addressing the press in Washington on Friday, did not mince words, warning of a strong retaliation if the tariffs are enforced.
“We are ready to put maximum pressure,” she declared, characterising the potential conflict as the “biggest trade war between Canada and the US in decades.”
Prime Minister Justin Trudeau echoed Joly’s concerns, emphasising Canada’s reluctance to engage in a trade dispute but asserting the country’s readiness for a firm response.
“Nothing is off the table,” Trudeau stated, indicating that retaliatory measures might include tariffs on American goods such as steel, glassware, and Florida orange juice.
Reports suggest that halting energy exports to the US is under consideration, although the proposal has sparked internal debate.
Alberta Premier Danielle Smith voiced opposition to the idea, whereas Ontario Premier Doug Ford urged a unified response, highlighting the nationwide impact of Trump’s potential actions.
The economic implications of a trade war are stark. Experts predict a contraction of over five per cent in Canada’s GDP, alongside rising inflation and unemployment.
The US-Canada trade relationship is crucial, with bilateral trade amounting to $3.6 billion daily. Moreover, Canada remains the largest export destination for 36 American states.
Jagmeet Singh, leader of the New Democratic Party, called Trump a “clear threat” to Canada’s economy and workforce. Singh proposed cutting off critical mineral supplies to the US as a means to compel Trump to reconsider his stance.
“If he wants to pick a fight with Canada, we have to make sure it’s clear that it’s going to hurt Americans as well,” Singh stated.
Trudeau has reiterated Canada’s preference to avoid a conflict but underscored that retaliatory measures would ensure fairness for Canadians.
Trump’s controversial assertion that Canada could become the “51st state” has added fuel to the fire, further straining relations.
The incoming administration’s trade policies have drawn criticism from business and labour groups on both sides of the border, intensifying concerns about the potential fallout of a full-blown trade war.
Credit: https://newsarenaindia.com/international/us-canada-on-brink-of-major-trade-war-over-tariffs/33964
