'It's insulting:' Ontario premier slams Trump on Canadian tariff threat

Eastern Ontario businesses brace for tariffs Businesses warn potential U.S. tariffs would result in reduced sales. CTV's Katie Griffin looks at the possible effect on the economy.

Ontario Premier Doug Ford is reacting to a threat from incoming U.S. president-elect Donald Trump to impose tariffs on imports from Canada, calling the proposal ‘insulting’ and emphasizing the need for leaders to work together on a response.

Trump, who takes office on Jan. 20, said Monday he would impose a 25 per cent tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate the U.S.-Mexico Canada Agreement (USMCA) on free trade. Trump separately outlined "an additional 10 per cent tariff, above any additional tariffs" on imports from China.

Ford described Trump's proposal as like "being punched in the face by a family member" and as unfair to lump in Canada with Mexico on border and drug issues.

"I think we should take it very seriously," he said on Newstalk 580 CFRA's The Morning Rush with Bill Carroll on Tuesday.

"I find it insulting to the Canadian people, it's insulting to the 909,000 Americans that live here and the billions in trade that we do every single year," he said.

Ford said Canada "needs to tighten up our border and vice versa" while pointing to illegal immigration and drugs coming into Canada from the U.S.

"We know there's a problem and vice versa. We know there's illegals coming in from the U.S., we know there's drugs coming in from the U.S. and we know there's firearms used in heinous crimes coming in from the U.S.," Ford said.

"I think we need to work together, get us off the same page as Mexico. Mexico has 2.3 million illegals coming into the southern border compared to Canada going into the U.S. is about 197.000 people. But we need to do a better job on our borders."

Asked if he can process the damage the tariffs would have on Ontario's economy, he said he is seeking a "Team Canada" approach and asking for a meeting with Prime Minister Justin Trudeau and other premiers while emphasizing the importance of the U.S.-Canada relationship.

"It wouldn't just hurt Ontario, it would hurt the U.S. as well. We're the third-largest trading partner in the world to the U.S. We're the number one export destination for 17 states and number two to 11 other states. It doesn't make sense," he said.

"We need to sit down and come up with a strong plan moving forward. I spoke to the prime minister late last night called for a premier's meeting today. Not tomorrow, not the next day, today."

Ford added that more resources are needed for the Canadian Border Services Agency (CBSA) to "tighten our borders like we've never tightened them up before" to prevent drugs and illegal immigration into Canada.

"We know the fentanyl is coming from China up through Mexico, up through California, up through B.C. and Alberta and there's a problem. We need to make sure we give the CBSA the resources that they need and that falls under the federal government," he said.

The U.S. accounted for more than 75 per cent of exports from Canada in 2023.

After issuing his tariff threat, Trump held a conversation with Canada's Prime Minister Justin Trudeau in which they discussed trade and border security, a Canadian source familiar with the situation said.

"It was a good discussion and they will stay in touch," the source said.

In a longer statement issued Monday night, the chairs of the recently-revived Canada-U.S. relations cabinet committee, Deputy Prime Minister and Finance Minister Chrystia Freeland and Public Safety Minister Dominic LeBlanc, said that Canada "places the highest priority on border security and the integrity of our shared border."

Economists say Trump's overall tariff plans, likely his most consequential economic policy, would push U.S. import duties back up to 1930s levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains.

The Canadian Chamber of Commerce had estimated based on the initial 10 per cent tariff prospect proposed by Trump during his presidential campaign, that “if other countries retaliated with tariffs of their own, the ensuing trade war would result in roughly US$800 USD (C$1,100) in foregone income annually for people on both sides of the border.”

Eastern Ontario business reacts

Glengarry Cheesemaking in Lancaster, Ont., exports ingredients for specialized cheesemaking, equipment, and supplies to the U.S., accounting for about 35 per cent of business.

"I believe there would be a reduction in sales because the buyer in the United States would probably hesitate," said company president Margaret Morris about the potential Trump tariffs. "But on the other hand, there could be a rush of business before the first of January."

Morris said the 25 per cent tariff would likely result in a six-figure hit to their costs.

"I would just hope that the government does react quickly to this and really dig in and get something done, sooner rather than later," Morris said. "Don't talk, do."

The Canadian Federation of Independent Business (CFIB) says Trump's expected move is an opportunity for the federal government to help businesses here.

"We know that president-elect Trump will focus on cutting taxes on businesses, eliminating regulations and so on. And so, we need to have an agenda here in Canada that will allow our own businesses to be competitive against U.S. companies," said Jasmin Guénette, the CFIB's vice- president of national affairs.

With files from Reuters and CTV's Rachel Aiello and Katie Griffin