Unusual Whales

Canadian Prime Minister Trudeau has that President Trump may have to turn to Russia, China or Venezuela for resources if he imposes 25% tariffs on Canadian imports

Unusual Whales -

Canadian Prime Minister Trudeau has that President Trump may have to turn to Russia, China or Venezuela for resources if he imposes 25% tariffs on Canadian imports.

Trudeau Warns U.S. Consumers Will Pay More if Trump Imposes Tariffs on Canada

Outgoing Canadian Prime Minister Justin Trudeau warned Thursday that American consumers will bear the cost if President Donald Trump moves forward with broad tariffs on Canadian goods.

Trump reaffirmed his plan to impose 25% tariffs on imports from Canada and Mexico as early as Feb. 1, telling reporters in the Oval Office that the measure remains on track. While he had previously threatened sweeping tariffs on Mexico, Canada, and China upon taking office, those duties were not implemented on day one.

Canada Vows Retaliation If Trump Moves Forward

Trudeau said that if Trump proceeds with the tariffs—whether on Jan. 20, Feb. 1, Feb. 15, or even April 1—Canada will respond with retaliatory tariffs, which will drive up prices for American consumers on nearly everything.

"We don’t think he wants that," Trudeau told reporters in Ottawa.

Economic Fallout: Higher Prices for Fuel, Autos, and More

Targeting Canada, America’s second-largest trading partner, could disrupt key markets for autos, lumber, and oil, with immediate consequences for U.S. consumers.

  • Alberta Premier Danielle Smith warned that Trump’s tariff on Canadian oil could result in Americans paying over $1 per gallon more for gasoline in some states.
  • Canada supplies nearly a quarter of the oil consumed daily in the U.S.
  • The country also exports critical minerals, steel, aluminum, and uranium, all of which are essential to U.S. industries.
“The U.S. should be working even more with Canada on energy, critical minerals, and the goods they need to fuel the economic growth that Donald Trump has promised,” Trudeau said.

He added that Canada’s first choice is cooperation, but if Trump follows through with tariffs, Canada is prepared to respond strongly while seeking to remove them as soon as possible.

Potential Retaliation: Orange Juice, Toilets, and Steel

Canada is considering retaliatory tariffs on American orange juice, toilets, and steel products if Trump proceeds.

  • In 2018, during Trump’s first term, Canada imposed billions in tariffs in response to U.S. taxes on Canadian steel and aluminum.
  • Trudeau emphasized that "everything is on the table", warning that while tariffs would hurt Canada, they would also be bad for American consumers.

Each day, $3.6 billion CAD ($2.7 billion USD) in goods and services cross the U.S.-Canada border, making Canada the top export destination for 36 U.S. states.

Trump’s Misleading Claims on Trade and Border Security

Trudeau also responded to Trump’s misconceptions about trade and the border.

  • Trump has falsely claimed a "$200 billion" U.S. trade deficit with Canada, even though Canada is a resource-rich nation supplying vital commodities like oil.
  • He has also overstated the impact of Canadian fentanyl and migration, despite Canada being a minor source of illegal drugs and migrants into the U.S.
“Less than one percent of illegal drugs and migrants entering the U.S. come from Canada, yet we’re still investing over a billion dollars to strengthen our border,” Trudeau said.

During a virtual appearance at the World Economic Forum, Trump suggested that Canada could avoid tariffs by becoming a U.S. state:

“If you’re a state, we don’t have a deficit. We won’t have to tariff you.”