US President-elect Donald Trump has announced plans to impose a 25% tariff on goods imported from Canada, along with similar measures targeting Mexico and China. The move, which Trump claims will address illegal immigration and drug smuggling, has raised significant concerns in Canada.
Ontario Premier Doug Ford was one of the most vocal critics, calling the proposed tariff “devastating” for workers and jobs on both sides of the border. He urged Canadian Prime Minister Justin Trudeau to take swift action and convene a meeting with provincial leaders to address the situation.
In a series of late-night calls, Trudeau and Trump discussed the tariff, with a Canadian government official stating that the conversation was “good” and lasted about 10 minutes. During the call, Trudeau highlighted that the number of migrants crossing from Canada to the US is significantly smaller than those coming from Mexico.
In a public statement, Canadian officials stressed the importance of the US-Canada trading relationship, noting that Canada was the largest source of US crude oil imports in 2022, accounting for 60% of the total. In 2022, Canada also exported goods worth approximately $437 billion to the US, making it the largest market for US exports.
The proposed tariff, which Trump plans to sign on his first day in office, is part of his strategy to combat the illegal flow of people and drugs, especially fentanyl, into the US. Trump’s new border czar, Tom Homan, has called the northern US-Canada border a “national security vulnerability,” alleging that it is being used as a route for people from countries associated with terrorism.
While the official response from Canada has been measured, provincial leaders, including those from Quebec and British Columbia, have echoed Ford’s concerns. Some business groups, including the Canadian American Business Council (CABC), have also opposed the tariffs, arguing that they could harm North American trade and economic strength.
Despite the backlash, some experts suggest that Trump’s tariff threat could be a negotiation tactic, with former Treasury Secretary nominee Scott Bessent commenting that Trump’s approach often involves escalating tensions to eventually de-escalate.
The proposed tariffs come amid growing concerns over illegal border crossings, with US authorities reporting a significant increase in the number of individuals arrested at the US-Canada border, many of whom are believed to have crossed from Canada to the US illegally.
The situation has raised alarm over the potential economic fallout, particularly as businesses on both sides of the border prepare for the impact of these new measures.
