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Retalitory tariffs, withheld energy possible as Canada plots response to Trump

91ƵA number of premiers spoke out strongly in favour of a robust Canadian response91Ƶ
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Prime Minister Justin Trudeau responds to questions from the opposition during Question Period, Tuesday, Dec. 10, 2024 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Canada is preparing retaliatory tariffs in response to U.S. president-elect Donald Trump91Ƶs threat to levy a 25 per cent import tax on all Canadian goods, and Ontario Premier Doug Ford threatened to withhold the province91Ƶs energy, which it exports to five states.

91ƵWe91Ƶll use every tool in our toolbox, including cutting them off,91Ƶ Ford said immediately after a meeting of the country91Ƶs premiers with Prime Minister Justin Trudeau and some members of the federal cabinet.

It was the second such meeting since Trump made the tariff threat, and the first since Trudeau flew to Florida to have dinner with the president-elect at his Mar-a-Lago estate.

In a Nov. 25 social media post, Trump said he would impose tariffs on all goods coming from Canada and Mexico unless both countries stop the flow of migrants and illegal drugs into the U.S.

Ford told reporters in Toronto on Wednesday that the federal government is preparing retaliatory tariffs.

91ƵWe need to be ready to fight, this fight is 100 per cent coming on Jan. 20 or Jan. 21,91Ƶ he said, referencing the date of Trump91Ƶs inauguration.

In Ottawa, Finance Minister Chrystia Freeland told reporters 91Ƶa number of premiers spoke out strongly in favour of a robust Canadian response to unjustified tariffs91Ƶ during the virtual meeting late Wednesday afternoon.

91ƵSome premiers proactively identified products that their provinces produce and export to the United States and which the U.S. relies on, and which should be considered as part of the Canadian response. This included some critical minerals and metals.91Ƶ

Public Safety Minister Dominic LeBlanc said the government shared details of its border plan with the premiers, who offered to contribute provincial resources to the effort.

91ƵWe91Ƶre going to incorporate many of the positive suggestions that the premiers made into finalizing our border plan,91Ƶ he said. 91ƵAnd then obviously a priority will be to share details of this plan with the incoming Trump administration and with Canadians in the coming days.91Ƶ

Ford said the premiers are on board with the plan to deal with Trump91Ƶs concerns about the border, but it needs a bit of 91Ƶpolish.91Ƶ

The premiers also asked for more 91Ƶboots on the ground91Ƶ at the border, including increasing the number of officers with the Canada Border Services Agency and the RCMP, which Trudeau agreed to do.

Yukon Premier Ranj Pillai said in an interview he 91Ƶpersonally was very impressed by what Canada put on the table in a response to border security and the illicit trade of fentanyl.91Ƶ

Freeland noted Canada responded to U.S. tariffs in 2018, and said 91Ƶour response worked.91Ƶ

During Trump91Ƶs first administration, he used his national security powers to impose a 25 per cent tariff on steel and a 10 per cent tariff on aluminum imports.

Canada and other countries brought their own duties, targeting products for political, rather than economic, reasons. One of those was a 10 per cent yogurt duty, where most of the product impacted came from one plant in Wisconsin, the home state of then-Republican House Speaker Paul Ryan.

Ultimately, Canada was able to negotiate an exemption.

The first ministers91Ƶ meeting came a day after Trump launched more jibes at Trudeau on social media, calling him governor of 91Ƶthe great state of Canada91Ƶ 91Ƶ a nod to his ribbing that he might just have Canada join the U.S. as its 51st state.

Ahead of the meeting, NDP Leader Jagmeet Singh said some conservative premiers have been giving off 91Ƶvery mixed messages,91Ƶ and now is the time to send signals of unity and a show of strength.

91ƵWhat we need to do is acknowledge Trump is a bully. Bullies look for weakness. That91Ƶs why he91Ƶs trolling us,91Ƶ Singh said, demanding a clear plan of action.

Lawmakers are days away from starting an extended winter holiday break, but when MPs return to Parliament in January, it will be after the presidential inauguration 91Ƶ making Trump91Ƶs social media taunts and threats all the more serious.

Immigration Minister Marc Miller said in the face of that the government needs to strike the right tone.

91ƵThis is the first inning. Yeah, sure, there91Ƶs some goofy stuff going on, there91Ƶs some shenanigans, but we have to be serious about this. Canadians expect their government to be serious about the border, about making sure Canadians are safe and secure,91Ƶ he said on Wednesday morning.

91ƵWe can91Ƶt be arguing against ourselves and at cross purposes, I think that91Ƶs really important,91Ƶ he added. 91ƵBecause anything the U.S. does impacts Canada so severely, this isn91Ƶt the time for partisanship.91Ƶ

Canada has vowed to beef up border security in the face of Trump91Ƶs threats, despite a lack of evidence for his claims about illicit fentanyl pouring into the U.S. from Canada.

Singh accused Trudeau of so far only acquiescing to Trump91Ƶs demands.

But Liberal MP Sean Casey said it91Ƶs not a problem if it appears Canada is bending to Trump91Ƶs pressure.

91ƵWhether it looks like we91Ƶre caving to his demands is completely irrelevant,91Ƶ he said as he headed into the caucus meeting. 91ƵIf his demands are aligned with the best interest of Canada, the perception of the relationship doesn91Ƶt matter.91Ƶ

Wednesday91Ƶs high-level meeting also comes days before Ford hosts the fall premiers91Ƶ meeting in Mississauga, which lasts Sunday through Monday.

This report by The Canadian Press was first published Dec. 11, 2024.

91Ƶ With files from Nick Murray and Liam Casey in Toronto

Anja Karadeglija and Kyle Duggan, The Canadian Press





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