Trump’s tariff plan still unknown to Canadian officials, with inauguration only hours away

As the countdown begins for U.S. president-elect Donald Trump’s return to the Oval Office, Canadian officials are on edge, unsure of whether he will follow through on his threat to impose hefty tariffs on Canadian goods. Finance Minister Dominic LeBlanc expressed concerns during an interview on Rosemary Barton Live, stating that while they have engaged in advocacy efforts, they are prepared to respond to whatever decision Trump makes.

Trump’s proposed 25 per cent across-the-board tariff on Canadian goods has been met with widespread criticism, with experts and lawmakers warning of its devastating impact on the Canadian economy. In an attempt to dissuade Trump, Prime Minister Justin Trudeau met with him in November, and Ontario even threatened to cut off energy exports. Additionally, Canada has developed counter-tariffs targeting $37 billion in goods that would minimize the economic damage.

Despite ongoing discussions with Republican senators and Trump’s cabinet secretaries, Canadian officials remain uncertain about Trump’s tariff plans. LeBlanc emphasized the need for swift action if necessary, with a brief consultation period for initial countermeasures followed by potential escalation. The goal is not to accept tariffs but to implement temporary measures to navigate through the situation.

Former commerce secretary Wilbur Ross expressed skepticism about Trump immediately imposing tariffs on Canada upon taking office. He advised Canada to make preparations while cautioning against engaging in a trade dispute with the U.S. due to its significance to the Canadian economy.

However, Canada faced internal challenges in its efforts to avoid Trump’s tariffs. A meeting between all 13 premiers and the prime minister in Ottawa resulted in Alberta Premier Danielle Smith opposing the Canadian strategy. Smith cited concerns about the federal government’s consideration of cutting off energy supplies to the U.S. and imposing export tariffs on Alberta products. This stance prompted Ontario Premier Doug Ford to emphasize the need for unity and prioritize the country’s interests.

Despite the internal disagreements, LeBlanc stressed the importance of consensus in Canada’s approach to Trump’s tariffs. He acknowledged Alberta’s concerns and reiterated the government’s commitment to addressing them. Ontario Energy Minister Stephen Lecce emphasized the need for unity and highlighted the potential for a strong energy partnership with the U.S.

As Canada navigates the uncertainty surrounding Trump’s tariff threats, officials remain hopeful for a resolution that recognizes the mutual economic benefits of the U.S.-Canada relationship. With a focus on collaboration and economic growth, Canada aims to weather the storm of potential tariffs while safeguarding its interests and fostering a productive partnership with its southern neighbor.