Canadian political leaders are considering various responses to potential 25% tariffs from the US, just days before they could be implemented. The government is debating whether to use energy supply as a bargaining tool in a tariff dispute.
President-elect Donald Trump has threatened to impose immediate tariffs on Canadian goods to pressure Canada to address issues related to illegal immigration and drug smuggling into the US.
Canadian Prime Minister Justin Trudeau, along with provincial and territorial leaders, discussed coordinated strategies in response to the looming tariffs. Trudeau emphasized the need to address the challenge collectively and assured support for affected sectors.
The possibility of tariffs poses a significant threat to Canada, as approximately 75% of its exports go to the US. Canadian officials are preparing countermeasures to mitigate the potential impact, including bolstering security measures along the US-Canada border.
While advocating for a unified approach, there are divisions among Canadian leaders on how to handle the situation. The disagreement became apparent when Alberta Premier Danielle Smith opted not to endorse the joint statement following the meeting, expressing opposition to export tariffs on energy and other products.
Trudeau and several other premiers are open to imposing counter tariffs on energy or halting energy exports to the US. There are concerns that tariffs could harm the US economy, increase inflation, and undermine national security, considering Canada's role as a vital energy and minerals supplier to the US.