credit: reuters
Prime Minister Justin Trudeau has strongly opposed the United States’ decision to impose tariffs on Canadian goods, as ordered by President Donald Trump. Starting February 4, new tariffs will be put in place, including a 10% tax on Canadian energy and a 25% tariff on Canadian exports.
Trudeau criticized the decision in a speech on Saturday and spoke about its effects on both countries.
He stated that the tariffs would harm Canadian businesses and people, but he also underlined how the US economy could be impacted particularly in industries such as auto manufacturing and the cost of
everyday things.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau says. “They will raise costs for you, including food at the grocery stores and gas at the pump.”
The Canada-United States-Mexico Free Trade Agreement is violated by US tariffs, Trudeau stated. Acknowledging their shared history and the value of working together for the common good, he demanded for a fresh loyalty between the two nations.
“As President John F. Kennedy once said, geography has made us neighbours, history has made us friends, and economics has made us partners,” Trudeau says. “Our relationship is one of the most successful economic, military, and security partnerships in the world.”
Trudeau also reminded the United States of Canada’s important contribution to the supply of energy and minerals, which are necessary to American security and industry. He underlined that Canada provides a solid and trustworthy alliance for developing a strong North American economy.
“Canada has critical minerals, reliable and affordable energy, stable democratic institutions, shared values and the natural resources you need,” Trudeau says. “We stand at the ready to work together.”
credit: reuters
Canada is taking its own revenge measures in reaction to the U.S. tariffs. To allow Canadian companies time to adapt, Trudeau declared that Canada would put a 25 percent tariff on $155 billion worth of American goods, with instant penalties on $30 billion worth of U.S. goods and more tariffs in 21 days.
“Canada will be responding to the U.S. trade action with tariffs on American goods. This decision will impact a wide range of products, but we will ensure that our businesses have time to adjust and seek alternatives,” he says.
Trudeau made it clear that these tariffs will simply make things even worse, since both nations are already battling major challenges like border security and the fentanyl crisis. He regretted the fact that rather than uniting the two nations, the U.S. policy is causing them to fall apart.
“Unfortunately, the actions taken today by the White House split us apart instead of bringing us together,” Trudeau says.
Both Canada and the United States are preparing for the potential political as well as financial impacts of this trade war as the tariffs are about to go into effect. The future of trade in North America is still unclear as tensions increase.
