Cabinet meets at Quebec resort as Trudeau says Canada spared tariffs for now

Prime Minister Justin Trudeau has expressed his optimism for the future of Canada’s relationship with the United States under President Donald Trump’s administration. In a statement released following Trump’s inauguration, Trudeau highlighted the importance of the economic partnership between the two countries and emphasized the need to work together for the prosperity of both nations while also safeguarding Canadian interests.

Trudeau’s statement comes at a crucial time, as there were initial concerns that Trump would impose tariffs on Canada, Mexico, and China. However, reports suggest that Trump will hold off on implementing these tariffs for now and instead focus on addressing trade deficits and unfair trade practices through other means. This development provides a temporary reprieve for the Liberal government, although the duration of this reprieve remains uncertain.

Finance Minister Dominic LeBlanc acknowledged the potential suspension of the tariff threat, stating that the government is prepared for any scenario that may arise. The federal cabinet is set to discuss these potential scenarios during a retreat at the Château Montebello resort in Quebec.

Trudeau’s government has reiterated its readiness to impose retaliatory tariffs on the U.S. if necessary to protect Canadian interests. In anticipation of trade actions by the U.S., officials have already devised a plan to impose tariffs on $37 billion worth of American goods. The government has also committed to enhancing border surveillance, investing $1.3 billion in resources such as drones and helicopters to strengthen security measures.

In addition to addressing trade issues, the federal cabinet is also focusing on the upcoming Liberal leadership race to replace Trudeau. Six candidates, including former government House leader Karina Gould and former finance minister Chrystia Freeland, have entered the race. The leadership campaign adds another dimension to the government’s priorities as it navigates the evolving political landscape.

Overall, Trudeau’s statement reflects a balance between fostering a positive relationship with the U.S. under the new administration while steadfastly defending Canadian interests. The government remains vigilant and prepared to respond to any trade challenges that may arise, demonstrating a commitment to protecting the economic well-being of Canadians.