Key Canadian ministers voiced their readiness to respond Monday after President Donald Trump suggested he might impose a 25% tariff on Canada and Mexico starting February 1.
Trump has repeatedly threatened broad tariffs targeting Canada, Mexico, and other trading partners. Speaking from the Oval Office late Monday night, he stated, “We’re thinking in terms of 25% on Mexico and Canada. I think February 1st.”
However, the precise timeline remains uncertain. Trump signed an executive order directing the Secretary of Commerce to prepare a report on the matter by April 1.
In his inaugural address, Trump reaffirmed his commitment to imposing tariffs, asserting that foreign nations would bear the burden of the trade penalties. In reality, such taxes are typically paid by domestic importers and often passed on to consumers.
Canadian Foreign Minister Mélanie Joly emphasized their efforts to prevent the tariffs, while also preparing for potential retaliation. “We’re working on retaliation,” she said, underlining Canada’s readiness for any outcome.
Finance Minister Dominic LeBlanc echoed her remarks, noting Trump’s unpredictability. “None of this should be surprising,” he said. “Our country is absolutely ready to respond to any one of these scenarios.”
Canadian leaders expressed initial relief that the tariffs were not enacted on Trump’s first day in office. However, concerns remain high, given Canada’s heavy reliance on trade.
Approximately 75% of Canada’s exports, including automobiles and parts, are destined for the U.S., making Canada one of the most trade-dependent nations globally.
Additionally, Canada is the leading export destination for 36 U.S. states, with nearly $3.6 billion Canadian (US$2.7 billion) in goods and services crossing the border daily.
Despite Trump’s claim that the U.S. could do without Canada, a significant portion of America’s energy consumption—about a quarter of its daily oil supply—comes from its northern neighbor.
Finance Minister LeBlanc warned of the potential consequences of Trump’s proposed tariffs. “It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost of living in the United States, jobs in the United States, and the security of supply chains,” he stated.
As tensions rise, Canadian officials remain vigilant, prepared to safeguard their nation’s economic interests while attempting to prevent a trade conflict.