Late Monday night, US president-elect Donald Trump used his Truth Social platform to announce he would impose across-the-board 25 percent tariffs on Canada and Mexico on day one of his new administration. Trump said he would leave the tariffs in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! [sic]”
Deputy Prime Minister Freeland’s first response was to say Canada “places the highest priority on border security and the integrity of our shared border,” adding that two-way trade with the United States is balanced and mutually beneficial. This was basically how China’s US embassy responded to Trump’s threat to impose an additional 10 percent tariff on all Chinese imports, which was also related to the fentanyl trade.
Canadian business groups and some provincial premiers, including British Columbia premier David Eby, joined the discussion shortly after with concerns about how the tariffs would affect Canadian businesses and jobs. “Canadians must stand united. Ottawa must respond with strength. We’ll never stop fighting for British Columbian families,” Eby said. Ontario premier Doug Ford said tariffs would be “devastating” and called for a “Team Canada” solution “now.”
To state the obvious, a 25 percent across-the-board tariff on all Canadian and Mexican exports to the United States would be highly disruptive for both countries. The tariffs make a mockery of the Canada-US-Mexico Agreement (CUSMA — the new North American Free Trade Agreement) and more or less blow up the longstanding assumption of stable, negotiated access to the US market.
Even if Trump does not follow through on his tariff threat, or if he does and they are short-lived,…
Auteur: Stuart Trew
