Trudeau to Trump: If tariffs are unleashed next week, Canada will push back

Prime Minister Justin Trudeau took questions from media after discussing his government's preparations to counter potential U.S. tariffs.

As U.S. President Donald Trump eyes Feb. 1 to levy tariffs, Prime Minister Justin Trudeau is reframing one of his government’s arguments against trade action, telling the new administration that they’ll need Canada in order to usher in the “golden age” promised on inauguration day.

“President Trump said that he wants to usher in a golden age for the United States that will require more steel and aluminum, more critical minerals, more reliable and affordable energy, more of everything to run the U.S. economy full steam ahead,” Trudeau said Tuesday.

“Canada has all those resources, and we stand at the ready to work with the United States to create a booming and secure North American economy.”

The prime minister made the pitch during a press conference wrapping up a brief cabinet retreat in Montebello, Que. where senior government officials met to discuss the tariff threat and Canada’s capacity to strike back.

Beyond directing a study of the cross-border trade relationship to be completed by April 1, Canada avoided the imposition of tariffs through an executive order on Day 1. Though, sitting in the Oval Office on Monday evening, Trump floated unleashing sweeping import tariffs on Canada and Mexico on Feb. 1, two months ahead of when Trump’s officials have been ordered to report back on their study findings.

“We are thinking in terms of 25 per cent on Mexico and Canada, because they are allowing vast numbers of people – Canada is a very bad abuser also – vast numbers of people to come in and fentanyl to come in,” he told White House reporters.

Picking up on the initial late-night reaction from Finance Minister Dominic LeBlanc and Foreign Affairs Minister Melanie Joly about how unsurprising Trump’s comment was, Trudeau said Canada remains “confident in the facts.”

“Canadian energy powers American manufacturing, businesses, and homes,” said the prime minister, arguing that tariffs are antithetical to the era of economic prosperity Trump promised during his inauguration speech in Washington.

Canada and the U.S. arguably have two of the most interconnected economies in the world, and trade between the two countries amounts to nearly C$1.4 trillion, or US$1 trillion, per year.

According to 2023 figures provided by the federal government on Tuesday following Trudeau’s address, Canada supplied more than 99 per cent of U.S.-imported natural gas, 60 per cent of imported crude oil and 85 per cent of imported electricity.

“Canada is a safe, secure and reliable partner in an uncertain world,” Trudeau said, noting that the alternative markets would be Russia, China, or Venezuela.

Prepared for every scenario: Trudeau

Beyond pointing to the trade links and opportunities for collaboration in an effort to prevent the imposition of tariffs, Trudeau renewed his warning that if the president does hit Canadian imports, the federal government will hit back.

“We are prepared for every possible scenario,” he said.

Canada has a three-round retaliation planned, according to a senior government source, which would start by singling out a small list of American-made consumer products such as Kentucky bourbon and Florida orange juice.

This targeting would be followed by tariffs on a longer list of U.S. goods worth $37 billion, and then if needed Canada would hit an additional $110 billion in manufacturing and other products with trade action.

“Everything is on the table,” Trudeau said, adding that includes dollar-for-dollar countermeasures, while noting the inevitable cost to consumers on both sides of the border.

“That’s why we will be there to support and compensate Canadians and Canadian businesses, depending on the response we have. The principle is that we will be there to support Canadians and Canadians will be there to support each other during any difficult times of tariffs,” he said.

Supporting workers hit by the trade war is something NDP Leader Jagmeet Singh called for, and vowed he’d do if prime minister, in a new statement on Tuesday.

“Every hour of a trade war, workers will be hurt – they will lose their jobs and they will pay even higher prices,” Singh said. “The stronger our response to the Trump Tax, the shorter the trade war will be.”

In a press conference on Tuesday, B.C. Premier David Eby said what Trump is threatening would be “catastrophic.”

“Right now, the situation we find ourselves in is one where there is no new normal in terms of our trade relationship with the United States,” Eby said.

While British Columbia may be one of the less trade-affected regions, Eby said the province is “putting on our ‘Team Canada’ jerseys,” and is asking residents to look at labels when at the grocery store and chose to buy Canadian.

‘Many’ moments of pressure ahead

Facing questions about managing a relationship with a world leader with shifting messaging about major economic moves, Trudeau said Canada has “been here before.”

“Donald Trump is, as always, a skilled negotiator and will do what he can to keep his negotiating partners a little bit off balance,” he said. “There will be many such moments.”

“We know that there is always going to be a certain amount of unpredictability and rhetoric coming out from this administration. Our focus is on the substance of things where Canada and the U.S. do well when we do things together,” Trudeau said.

The prime minister said he spoke with Ontario Premier Doug Ford last night, who Trudeau said reiterated his unwavering commitment to working together, alongside other provincial and territorial leaders.

“We will stay steady,” Trudeau said. “Our focus is remaining calm, remaining strong.”

While no official next meeting is on the books yet between Trudeau and Trump, the prime minister said Tuesday to “stay tuned.”

Canada’s Ambassador to the U.S. Kirsten Hillman, who travelled from Washington to attend the cabinet retreat on Tuesday, said Trump’s latest declarations have moved the conversation she and other officials have been having with Americans from the abstract to a more concrete discussion.

Echoing this, Industry Minister Francois-Philippe Champagne, who attended the inauguration, said Republicans understand that they won’t be able to tariff Canada without consequences.

“I just don’t want to be the friendly neighbour of the North, but the strategic partner of choice in the 21st century world,” Champagne said.

Speaking to reporters later, Manitoba Premier Wab Kinew said he’s still hopeful Canada can “just preserve the trade relationship as it is.”

“There’s tons of trips down to the states to make the case in person,” Kinew said. “We’ll be back as a group of premiers in D.C. to make that case to the new administration on Feb.12.”

Canada in ‘difficult position’: Smith

Alberta Premier Danielle Smith, who addressed reporters from Washington on Tuesday morning, said she’s nervous that Trudeau’s remaining mandate compromises his ability to negotiate.

With Parliament ready to declare non-confidence in the Liberal government within days of the House of Commons resuming on March 24, Canada could be plunged into a springtime election, which could result in a change in government.

“We’re in a difficult position,” said Smith, adding whoever is sitting on the Canadian side of the negotiating table “needs a mandate to negotiate.”

Conservative Leader Pierre Poilievre called for Trudeau to recall the House of Commons, which is currently prorogued, to consider Canada’s retaliation plan to what he called Trump’s “unjustified” tariffs.

“Conservatives are calling for Trudeau to reopen Parliament now to pass new border controls, agree on trade retaliation and prepare a plan to rescue Canada’s weak economy,” Poilievre said in a statement Tuesday.

Asked about the Conservatives' latest comments in an interview on CTV’s Power Play, Immigration Minister Marc Miller said there are several measures the Canadian government can implement without legislation, or having Parliament in session.

“Indeed, were the prime minister or the president to impose tariffs, we would be ready to move tomorrow,” Miller said, adding that when votes do come up on additional border and security funding in March, the Conservatives could choose to help pass those measures, then.

“Or they can vote against it, and we can go into an election,” Miller said.