Prime Minister Justin Trudeau says tariffs imposed by Washington on Canadian goods will backfire and “inevitably hurt American workers.”
“The interconnectedness between the supply chains in Canada and the United States, the reliableness of Canada as a partner to so many and so much of the American economy, means that tariffs or thickening of the border between Canada and the U.S. will inevitably hurt American workers, American jobs as well,” Trudeau said at a press conference in Vancouver on Nov. 8.
The prime minister was responding to a reporter who asked what his government has learned about responding to American trade policy, citing the tariffs on Canadian softwood lumber as an example.
‘Ready to Tackle’
Trump has proposed a 10 percent tariff on all imports to the United States and 60 percent on Chinese-made goods. In 2018, during his first term, Washington had slapped tariffs on Canadian steel and aluminum, leading to retaliation from Ottawa. The two parties reached a deal on the issue almost a year later.However, the report added that since the move would also hurt the U.S. economy, it’s unlikely that broad-based tariffs would be imposed on America’s northern neighbour.
“We are optimistic that Canada will ultimately avoid blanket tariffs,” wrote TD economist Marco Ercolao in his report published on Oct. 24. “The likelihood that tariffs drag down the U.S. economy, disrupt supply chains, and stoke inflation are enough of a reason to forgo tariffs on Canada.”
Trudeau said his government will ensure Trump’s policies to protect American jobs can be done in partnership with Canada. He cited how Ottawa had faced challenges from the Biden administration on various issues, such as electric vehicles, but was able to resolve them through “very deliberate and concerted approaches.”
‘In Alignment’
The Cabinet Committee on Canada-U.S. Relations was created by Trudeau after Trump took office the first time in 2017. It went dormant during President Joe Biden’s term but was revived a little more than 24 hours after Trump’s win was secured.The revived committee, made up of Liberal cabinet ministers, is chaired by Deputy Prime Minister and Finance Minister Chrystia Freeland and vice-chaired by Public Safety Minister Dominic LeBlanc. It was re-established in response to the “urgent issue” of Trump’s victory, Freeland said.
Trudeau said Canada is aligned with the United States when it comes to protecting jobs from China.
“There’s an awful lot Canada and the U.S. are going to be able to do together to successfully compete with the world.”