Canada is seriously considering imposing its own tax on the United States if the incoming Trump administration slaps tariffs on exports from north of the border.
The northern neighbor is weighing retaliatory action against the U.S. should President-elect Donald Trump follow through with his campaign promise to impose a significant tax on foreign goods entering the country. A senior official told the Associated Press that Canada could impose tariffs on certain items from the U.S.
Canadian Prime Minister Justin Trudeau walked the line in a press conference Friday, telling reporters that he was determined to work with Trump.
“It is important to understand that Donald Trump, when he makes statements like that, he plans on carrying them out, there’s no question about it,” Trudeau said to reporters on Prince Edward Island “Our responsibility is to point out that he would not just be harming Canadians, who work so well with the United States, but he would actually be raising prices for American citizens as well and hurting American industry and business.”
Trump has threatened a 25% tariff on imported goods entering the country from Canada and Mexico, starting on Day One of his second administration, Jan. 20, 2025.
Two-thirds of U.S. states export more goods to Canada than any other country, and retribution from the northern neighbor could create new economic problems.
“We’re going to work together to meet some of the concerns,” Trudeau said Friday. “But ultimately, it is through lots of real constructive conversations with President Trump that I am going to have, that will keep us moving forward on the right track for all Canadians.”
Trudeau is not the only one concerned about Trump’s purported tax on incoming goods.
Mexican President Claudia Sheinbaum told Trump in a phone call earlier this week that she did not think that the U.S. and Mexico would descend into a tariff fight, but she has not indicated how to avert it.
However, Trump touted on social media this week that the two agreed to stop illegal immigration at the U.S.-Mexico border, in a statement that glossed over what has already been done that has slowed the tide of migration in the last year.
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As a candidate, Trump touted the tariff as a way to force corporations to set up manufacturing plants and operations in the U.S., therefore creating more U.S. jobs at good wages.
However, some have pointed out that it could cause the price of goods to rise, worsening the impact of inflation seen during the past four years under President Joe Biden and Vice President Kamala Harris.
