Liberal Cabinet Retreat Planned on Trump Inauguration Day as Tariffs Loom

Then-U.S. President Donald Trump greets Prime Minister Justin Trudeau at the White House in Washington on June 20, 2019. Nicholas Kamm/AFP via Getty Images

The Liberal cabinet will start its retreat on the same day that Donald Trump is inaugurated the 47th U.S. president, while the party works to avoid the tariff threat from the incoming U.S. administration.

Trump’s inauguration is set for Jan. 20 and the cabinet retreat will run from Jan. 20 to 21 in the Outaouais region in Quebec, across the river from Ottawa.

Trump vowed in November to impose a broad 25 percent tariff on Canadian goods unless Ottawa reinforces the Canada-U.S. border to stop illegal immigration and drug smuggling.

“With the threat of tariffs from the incoming United States administration, Team Canada will use expanded capabilities to strengthen Canada’s relationship with the U.S., protect Canadian investment and jobs, and make unequivocally clear the mutually beneficial relationship our two countries share,” Prime Minister Justin Trudeau said in a Jan. 14 statement from his office about the cabinet retreat.

Trudeau announced his plan to resign last week and, so far, some of his potential replacements have cited the threat of tariffs as a reason for not running in the Liberal Party leadership race.

Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly, who both occupy central roles in relations with the United States, have bowed out of the race, saying they would focus on their ministerial responsibilities.

“My job today, and my choice today, is I’m putting my country first,” Joly said on Jan. 10 in announcing she wouldn’t be running for leadership.

Ottawa has been preparing a list to impose retaliatory tariffs on Washington, and Joly told CTV News earlier this week that “everything is on the table” when asked whether energy exports to the United States could be cut off. Canada is the largest oil supplier to the country. Alberta Premier Danielle Smith has rejected the idea of blocking energy exports from her province.

Trump imposed tariffs on Canadian steel and aluminum during his first term in 2018 and Canada responded by imposing a surtax on U.S. steel and aluminum, as well as on a long list of other products from condiments to home appliances. Both countries came to an agreement and lifted their tariffs almost a year later.

The Canadian government is working to avoid a repeat of the situation and top officials are making the rounds in the U.S. capital.

Trudeau visited Washington last week for the funeral of former U.S. President Jimmy Carter. He also met with business leaders during the visit and gave interviews to American television networks.

Joly said she would visit Washington in the coming days, as did newly appointed Public Safety Minister David McGuinty.

Along with using diplomacy, the federal government has prepared a $1.3 billion plan to bolster border security in order to dissuade Trump from imposing tariffs. The incoming U.S. administration has not publicly commented on the plan and Trump repeated his threat to impose “substantial” tariffs on Canada last week.

The Prime Minister’s Office said the new plan, which includes investments to increase security personnel at the border, to purchase new surveillance systems, and to increase cross-border law enforcement work, is a “testament” to Canada’s commitment to the security and prosperity of the two neighbouring countries.

Canada and the United States share the longest undefended border in the world. Nearly $3.6 billion in goods and services crossed the border each day in 2023.

Since making his tariff threat in late November, Trump has repeatedly commented about making Canada the “51st” U.S. state.

Matthew Horwood and Isaac Teo contributed to this report.