Canada’s Prime Minister Justin Trudeau said the country “will respond” if US President-elect Donald Trump imposes new tariffs on Canadian imports.

Trump recently proposed imposing 25% tariffs on Canadian and Mexican imports, contingent on both countries addressing migration and fentanyl flows into the US. Recognising the potential severity of such a move, Trudeau stated bluntly, “Let’s not kid ourselves in any way, shape or form: 25% tariffs on everything going to the United States would be devastating for the Canadian economy.”

According to Blomberg, the prime minister emphasised that such tariffs would not be a one-sided punishment, arguing they would raise costs for US consumers on a wide range of goods imported from Canada. Drawing from past experience, Trudeau recalled Canada’s strategic response to similar tariffs on steel and aluminium in 2018, where they implemented carefully targeted retaliatory measures.

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During the previous trade dispute, Canada responded by imposing tariffs on politically sensitive American products like bourbon, Harley-Davidson motorcycles, playing cards, and Heinz ketchup. Trudeau explained that these specific choices were designed to be “politically impactful to the president’s party and colleagues,” creating pressure that would be genuinely felt by Americans.

Whilst acknowledging the seriousness of Trump’s threats, Trudeau provided a nuanced analysis of the president’s negotiation tactics. He suggested that Trump’s approach often involves challenging partners, introducing uncertainty, and creating a sense of chaos in established diplomatic channels.

Despite the potential economic pressures, Trudeau advocated for a measured response. “One of the most important things for us to do is not to freak out, not to panic,” he advised, emphasising the need for a thoughtful and united approach to navigate potential trade negotiations and protect both countries’ economic interests.