Ottawa: Canadian Foreign Minister Melanie Jolie has issued a stark warning to the US that US consumers could face a “Trump Tariff Tax” if President-elect Donald Trump follows through on his threat to impose 25% tariffs on all Canadians. Will have to suffer. equipment
Jolie’s comments came after a meeting with US senators in Washington on Friday, where she urged Canada to be ready to respond with maximum pressure on the US.
If we need to retaliate, we will. And the Americans will discover Trump’s tariffs,” Jolly said, stressing that Canada is well-organized to respond effectively. However, he added that until Ottawa Trump’s executive No retaliatory action will be taken until order details are seen.
Trump has previously threatened to impose massive tariffs on Canada, as well as Mexico and other trading partners. The move has created uncertainty as to whether it is a serious policy proposal or a bargaining ploy.
Despite the prospect of rising tariffs, Trump has played down the risk of higher inflation, insisting Americans will feel the effects soon.
Jolie confirmed that Canada will impose an initial round of countermeasures, followed by additional rounds, if Trump goes ahead with his tariffs.
Possible targets for retaliation include US exports including orange juice, toiletries and certain steel products. Canada’s trade retaliation would mirror the response it made during Trump’s first term in office when tariffs were imposed on Canadian steel and aluminum.
The increased threat of tariffs could have significant implications for both countries. The United States and Canada have highly integrated economies, particularly in sectors such as auto manufacturing, where parts cross the border several times before final assembly.
A 25% tariff could disrupt these industries, negatively impact the North American auto sector and potentially threaten American jobs.
Prime Minister Justin Trudeau also warned that such tariffs would hurt the North American auto industry. “These tariffs will hurt the North American auto industry and put American jobs at risk,” he said.
Jolie’s visit to Washington included meetings with US Senators Lindsey Graham, James Rash, Jane Shaheen, John Thune and outgoing US Secretary of State Anthony Blanken.
According to Jolly, many U.S. lawmakers were surprised and concerned about the potential impact on the U.S. economy, with some expressing that they did not want such tariffs.
Canada is an important trading partner for the United States, with 36 US states relying on Canada as an export destination. 3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border every day. Jolly noted that many Americans are unaware of the important role Canada plays in their economy.
A 25% tariff could have significant economic consequences. Analysis by the Canadian Chamber of Commerce suggests it could shrink Canadian GDP by 2.6 percent and U.S. GDP by 1.6 percent, disrupting sectors such as agriculture and energy.
Former Canadian finance minister Chrystia Freeland, now running for prime minister, warned that Canada’s response to the tariffs would be just as strong.
“If pushed through, our response would be the biggest trade blow to the U.S. economy ever,” Freeland wrote in the Toronto Star, citing U.S. industries such as Florida orange growers, Michigan dishwasher manufacturers, and Wisconsin dairy farmers. Predicting important outcomes for
