By Reeturaj - Jan 24, 2025
Canada is considering retaliatory tariffs against the U.S. if President Trump follows through with tariffs on Feb. 1. Trump's focus is on stopping unauthorized migration and illicit drug flow. Divergent opinions among Canadian premiers make finding a unified approach difficult as they navigate the need for a firm response while maintaining economic relations with the U.S.
Reuters via FMT
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Canada appears to be leaning toward hitting the United States with matching tariffs if President Donald Trump makes good on his threats, but not all of the country's premiers support that approach. But Trump said on Monday the tariffs on Canada and Mexico could come on 1 February as he ordered federal officials to review US trade relationships for any unfair practices - including relationships with Canada, Mexico and China.
Trump said Tuesday that the 25% tariffs that he intends to place on Canada and Mexico as soon as Feb. 1 would have “nothing to do” with renegotiating the existing trade pact among the three countries. For him, the tariffs are all about stopping unauthorized migration and the flow of any illicit drugs.The U.S. president told reporters at the White House that, in his opinion, the amount of fentanyl coming through Canada and Mexico is “massive.”U.S. customs agents seized just 43 pounds of fentanyl at the Canadian border last fiscal year, compared with 21,100 pounds at the Mexican border.
Saskatchewan Premier Scott Moe said Wednesday that while he is on board with the Team Canada approach, "broad-based tariffs, dollar-for-dollar tariffs with the U.S. is not in Canadians' best interest, nor should export tariffs ever be considered by our government." Smith said there was also "general agreement on the need to focus more on constructive, proactive diplomacy with U.S. lawmakers rather than escalating rhetoric" at Wednesday's meeting. Ford said Smith "understands we need to be united, and I understand that she wants to protect her main commodity." "But country comes first, over anything, and you can't throw a tool away from the tool box," he added.When asked whether Smith was now on-side with her colleagues, Ford said, "I think we're moving her along."
On the threat of tariffs, Sheinbaum took solace in that the “ America First Trade Policy ” order that Trump signed Monday talks about the free trade agreement signed with Mexico and Canada during Trump’s first term, which lays out clear processes for disputes. She noted that a formal revision of the agreement is scheduled for July 2026. With divisions among the premiers, it is clear that finding a solution that satisfies all provincial leaders will be a difficult challenge. Ultimately, it may come down to how the federal government navigates this complex issue and whether it can balance the need for a firm response with the desire to maintain a strong economic relationship with its largest trading partner.