Business
Trudeau Fails to Stop President Trumps Tariffs on Canada
On Saturday, U.S. President Donald Trump officially announced unprecedented new tariffs on Canada, Mexico, and China at Mar-a-Lago, leaving many Canadians questioning why Trudeau didn’t work harder to prevent them.
Many critics argued that Trump’s approach lacked the toughness to handle his aggressive trade policies, while some blamed Trump’s anti-Trump rhetoric and his use of Trump as a foil for political gain. Trudeau has consistently criticized Donald Trump’s policies and approach, often framing them as divisive or harmful.
The tariffs will result in a substantial 25% duty on all imports from Mexico and most goods from Canada and a 10% tariff on Chinese goods imported into the United States.
He granted a 10% tariff exemption for energy products, widely believed to have resulted from Alberta Premier Danielle Smith’s significant lobbying efforts. Smith has publicly criticized Prime Minister Trudeau for the tariffs.
President Trump signed three distinct executive orders regarding tariffs, promising to maintain their implementation until the conclusion of the national emergency, which he characterized as the drug fentanyl and illegal immigration to the United States.
Trump declared a national economic emergency in his executive action to implement the tariffs, utilizing the International Emergency Economic Powers Act (IEEPA), which allows a president to unilaterally manage imports during a national emergency.
Trump’s written order dictates that tariff collections commence on Tuesday at 12:01 a.m. EST (0501 GMT). Imports loaded onto a vessel or their final mode of transit before entering the United States before 12:01 a.m. on Saturday would be exempt from the duties.
Canada and Mexico immediately declared their intention to retaliate against the U.S. actions, while China did not respond immediately.
Tariffs Condenmed by Premiers
Trudeau convened with his cabinet and premiers on Saturday afternoon, before Washington’s official announcement, upon receiving notification of the tariffs earlier in the day.
“We did not want this, but Canada is prepared. I’ll be addressing Canadians later this evening,” he wrote on X today.
Provincial officials and business executives in Canada responded with indignation, advocating for imposing enforced tariffs on imports from the United States.
Ontario Premier Doug Ford said in an X social media post that Canada “now has no choice but to hit back and hit back hard.”
“As Premier of Ontario, the federal government has my full support for a strong and forceful response that matches U.S. tariffs dollar for dollar,” Ford said.
Tim Houston, the Premier of Nova Scotia, has ordered that all alcohol imported from the United States be removed from the province’s store shelves.
David Eby, the Premier of British Columbia, has directed the province’s liquor stores to cease immediately stocking alcohol from “Red States” that support Trump’s Republicans. He has also requested that government departments and agencies prioritize Canadian products.
Opposition Conservative Leader Pierre Poilievre also condemned Trump’s action as “unjust.” In a statement on social media Saturday, he said Trudeau must respond with “dollar-for-dollar tariffs carefully aimed at maximizing impact on American companies while minimizing impact on Canadian consumers.”
On Friday, Trudeau pledged that Canada would respond with a “reasonable,” “immediate,” and “purposeful” response, even though he has not yet publicly disclosed plans for retaliatory tariffs.
Business Leaders Express Disappointment of Tariffs
Candace Laing, President of the Canadian Chamber of Commerce, stated on X that the tariffs will have immediate and direct effects on the livelihoods of Canadians and Americans.
“This decision is illogical in light of the fact that the majority of Americans are against tariffs, it has a detrimental impact on businesses and workers on both sides of the border, and the U.S. stock market is indicating that there is no appetite for disruption,” Laing stated in a statement on Saturday.
The Canadian Federation of Independent Business expressed disappointment with the tariffs, stating that they will significantly impact small businesses on both sides of the border.
According to a statement from the Canadian Federation of Independent Business [CFIB], just over half of Canada’s small businesses are directly involved in importing or exporting to the United States.
Trudeau Warned Over Alberta Oil
Candace Lang, President and CEO of the Canadian Chamber of Commerce, issued a statement that stated, “President Trump’s profoundly disturbing decision to impose tariffs will have immediate and direct consequences on the livelihoods of Canadian and American citizens.”
“At present, Canada’s primary objective is to ensure the security of Canadian families, communities, and businesses, which are legitimately concerned about the repercussions of President Trump’s self-defeating policies.”
Tim McMillan, the former head of the Canadian Association of Petroleum Producers, cautioned that Ottawa should refrain from retaliating by cutting off oil supplies from Alberta, which accounts for half of U.S. oil imports. He stated that this would be a “huge mistake.”
According to McMillan, Trudeau should consider declaring a “Canadian national energy emergency” to expedite the construction of additional export infrastructure. This would reduce Canada’s dependence on America as its sole oil customer.
Industry groups and Democrats issued stark warnings about the impact on prices, while Republicans welcomed the news.
President Jake Colvin of the National Foreign Trade Council (NFTC) expressed concern that Trump’s action could increase the price of “everything from avocados to automobiles” and urged the United States, Canada, and Mexico to find a solution quickly to prevent further escalation.
“Our focus should be on working together with Canada and Mexico to gain a competitive advantage and facilitate American companies’ ability to export to global markets,” Colvin stated in a public statement.
