In the wake of Donald Trump's inauguration as President of the United States, Canadian leaders are strategizing their response to potential trade tensions. The country's first ministers have committed to holding weekly meetings to address developments, particularly concerning trade and tariffs. On Wednesday morning, the premiers met virtually with Prime Minister Justin Trudeau and federal officials to discuss Trump's recent actions and plans, including the looming threat of tariffs on Canada and Mexico. This meeting came after Trump signed an executive order on Monday directing his government to review alleged unfair trade practices by these countries, with a report due by April 1.
The possibility of tariffs has prompted Canadian leaders to focus on resolving long-standing trade issues within the country. The Committee on Internal Trade, comprising representatives from all provinces and territories along with Internal Trade Minister Anita Anand, has agreed to convene urgently to explore ways to ease the movement of goods domestically. Despite these internal efforts, Canada's federal government had previously announced a $1.3-billion plan in December to enhance border security, which included deploying two new RCMP helicopters for boundary surveillance.
Trump's threats to impose tariffs stem from allegations of inaction on illegal drugs and migrants entering the U.S. Canadian officials have countered these claims, stating that less than one percent of fentanyl or migrants entering the U.S. originate from Canada. In response, Canadian premiers are contemplating matching tariffs should Trump proceed with his threats. However, there is no consensus among the premiers on this approach.
Ontario Premier Doug Ford emphasized the need for a "solid plan" before making any decisions, highlighting a cautious stance towards potential retaliatory measures. Alberta Premier Danielle Smith expressed concerns regarding possible export taxes on energy following last week's discussions. By contrast, Nova Scotia Premier Tim Houston expressed support for federal government retaliation against what he termed "the Trump tax."
Prime Minister Justin Trudeau has advocated for a firm stance against potential U.S. tariffs.
“We know these tariffs are coming Feb. 1. We need to match those tariffs dollar-for-dollar, tariff-for-tariff, and make sure that it hurts the Americans as much as it hurts Canadians,” – Justin Trudeau
Despite this, not all leaders agree with Trudeau's approach. Saskatchewan Premier Scott Moe has voiced opposition to broad-based retaliatory tariffs.
“broad-based tariffs, dollar-for-dollar tariffs with the U.S. is not in Canadians’ best interest, nor should export tariffs ever be considered by our government,” – Scott Moe
Moe suggested a more measured approach, indicating that reprisals would only follow confirmed tariff increases from Trump.
“We’ll wait for Mr. Trump to file tariff increases before filing reprisals” – Scott Moe
Additionally, Moe mentioned that specific retaliatory steps had been discussed but would remain undisclosed.
“As for retaliatory measures, we agreed on certain steps, but we are not going to reveal them” – Scott Moe
Doug Ford echoed the importance of considering all available options.
“country comes first, over anything, and you can’t throw a tool away from the tool box” – Doug Ford
Quebec Premier François Legault also stressed the need for provincial consensus in any special contributions required.
“It’s important that if we ask a province to make a special contribution, that the province agrees” – François Legault
The federal Liberal cabinet has spent two days at a retreat this week, carefully considering potential responses while awaiting further developments from the Trump administration.
