A full-blown trade war has erupted between the U.S and Canada.
As threatened, President Donald Trump slapped crippling tariffs on Canadian and Mexican imports into the U.S just after midnight on March the fourth, and Ottawa immediately began retaliation, with 25 percent tariffs on many American products.
President Trump embarked upon his trade action, 25 percent across-the-board tariffs on all imports from Canada and Mexico and 10 percent on Canadian energy. Since November, he’s insisted the duties are aimed at stopping the flow of illegal drugs and illegal migrants into the U.S. Still, Ottawa had announced and started implementing a 1.3-billion-dollar border plan to bolster security and address Trump’s concerns.
Canada’s response to the tariffs was swift. Prime Minister Justin Trudeau said there is no justification for what is happening.
“The United States launched a trade war against Canada. Their closest partner and ally, their closest friend,” Trudeau said. “At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”
Trudeau says Canadians will not back down from a fight, especially when their country and the well-being of everyone in it is at stake.
“Canada will be implementing 25 percent tariffs against 155 billion dollars’ worth of American goods. Starting with tariffs on 30 billion dollars’ worth of goods immediately. And tariffs on the remaining 125 billion dollars of American products in 21 days time,” Trudeau said.
Trudeau reminded Americans that Canada did not want this trade war and has done everything possible to avert it. But Trudeau then said it’s never been about drugs and migrants.
“Even the excuse that he’s giving for these tariffs today of fentanyl is completely bogus, completely unjustified, completely false,” Trudeau said. “So, we actually have to fold back on the one thing he has said repeatedly, that what he wants to see is a total collapse of the Canadian economy because that’ll make it easier to annex us.”
Trudeau says that will never happen; Canada will never become the fifty-first state. He adds that the tariffs will do damage – to Americans and Canadians alike.
Trudeau then spoke directly to the President.
“Now it’s not in my habit to agree with the Wall Street Journal. But Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau said.
While Trudeau commits to federal actions, provincial premiers are taking what actions they can.
Ontario Premier Doug Ford says that Trump has chosen chaos instead of collaboration. But Ford says Canada has been left no choice but to retaliate, and that includes Ontario and other provinces, targeting American alcohol.
“Every year, the LCBO sells nearly one billion dollars’ worth of US wines, beer, cider, seltzer and spirits, including more than 36 hundred products from 35 states. As of today, every single one of these products is off the shelves. Also, starting today, all US-based companies will be banned from taking part in government procurement. Every year, the province and its agencies spend about 30 billion dollars on procurement,” Ford said.
Ford even apologized to American neighbors but said these actions are necessary to push back against President Trump. His government is also ripping up its one hundred-million-dollar contract with Elon Musk’s Starlink. Ford went even further.
“We need to be ready to escalate using every tool in our tool kit. That includes surcharges or even outright restrictions on the critical minerals and electricity we supply to the United States and the critical minerals and electricity they depend on,” Ford said.
The threat of a surcharge on electricity prompted Commerce Secretary Howard Lutnick to call Ford and ask him to back off from his retaliatory tariffs- and he appeared on Canadian television suggesting there might even be room to negotiate and meet Canada in the middle.
But in his speech to Congress last night, Trump showed no sign of letting up on tariffs, which could mean a long, bitter, and costly fight that would bring economic hardship to millions on both sides of the border.
