Canada is on alert after Donald Trump announced his intention to raise tariffs to 25% as early as January. This threat, perceived as a declaration of trade war, caused a shock wave in a country where 75% of exports depend on the American market.
Trying to calm things down, Prime Minister Justin Trudeau assured that he had a “good” exchange with the American president-elect. “We spoke about the intense and fruitful ties between our two countries,” he declared, while announcing a meeting with the Prime Ministers of the provinces to coordinate the response. Justin Trudeau called for unity in the face of this major economic crisis.
Outrages in the provinces
Provincial leaders expressed outrage. Doug Ford, Premier of Ontario, called the decision a “dagger to the heart.” François Legault, from Quebec, sees “a huge risk” for the economy, and David Eby, from British Columbia, called for a “firm response” from the federal government.
Economically, the impact could be considerable. “If these customs duties are applied, it will be catastrophic. », alerts Ian Lee, professor at Carleton University. The energy and automotive sectors are particularly exposed, putting 2 million jobs at risk. A devaluation of the Canadian dollar could also exacerbate inflation. Some still hope that this is just a negotiating tactic by Donald Trump.
Implications for Americans
The Canadian government also highlights the potential repercussions for American consumers, recalling that 60% of American oil and gas imports come from Canada. Immigration Minister Marc Miller is calling for a dialogue with the Trump administration to demonstrate Canadian efforts in border security, a justification invoked by Donald Trump.
Geneviève Dufour, an expert in trade law at the University of Ottawa, believes that Canada must prepare for an escalation: “We are probably heading towards a trade war. Canada will have to defend its industries. » The prospect of a serious economic crisis looms, despite the assurances of Justin Trudeau who affirmed that “we have been preparing for this possibility for a long time”.
