Canadian Prime Minister Justin Trudeau issued a resolute warning against incoming US President Donald Trump's plans to impose sweeping tariffs on Canadian imports, describing the potential move as a direct threat to decades of mutually beneficial trade relations and economic stability between the two nations. Speaking at a high-stakes meeting of the newly formed Canada-US Relations Council on Friday, Trudeau vowed to protect Canada’s economic interests and defend its industries, warning that any imposition of punitive tariffs could trigger the largest trade war between the two nations in modern history.
The meeting, held in Ottawa, marked a critical moment in Canada’s evolving strategy to counter the disruptive trade policies signaled by Trump’s incoming administration. The 18-member Council, composed of prominent leaders from the automotive industry, agriculture, unions, and key policy sectors, was established to provide unified guidance on navigating the challenges posed by Trump’s aggressive trade rhetoric. Trudeau emphasized the importance of presenting a strong and coordinated response to any unilateral action by the US.
“No one wants to see US tariffs imposed on our goods or witness the destabilization of a long-standing trade partnership,” Trudeau stated. “But let me be absolutely clear: Canada will be ready with a robust and national response if we are forced to defend our industries, our workers, and our sovereignty. We will not stand idly by while our economy is threatened.” The prime minister’s remarks underscored Canada’s readiness to escalate retaliatory measures if necessary.
Canada’s economy relies heavily on its trade relationship with the United States, which accounts for approximately 75 percent of its exports. The proposed tariffs, which could target key sectors such as automotive manufacturing, agriculture, and natural resources, are part of Trump’s broader economic and national security agenda. The incoming administration claims the measures are necessary to address issues such as illegal drug trafficking, border security, and perceived trade imbalances. However, Canadian officials have dismissed these justifications as baseless, citing data that shows less than 1 percent of fentanyl and irregular migrants entering the US come from Canada.
Trudeau acknowledged the potential for severe economic repercussions should the proposed tariffs be enacted, describing the situation as a "worst-case scenario" for both nations. “If push comes to shove, Canada will respond with strength and unwavering resolve,” he stated, warning that retaliatory tariffs and other countermeasures would be implemented swiftly to protect Canadian interests.
Foreign Minister Mélanie Joly echoed Trudeau’s stern position, addressing reporters during a press conference in Washington, where she emphasized Canada’s readiness to retaliate. “The Americans would be instigating a trade war against us, and we are fully prepared to respond with maximum pressure,” Joly said. “We already have a detailed set of countermeasures ready to deploy. If the President goes ahead with these tariffs on Monday, Canada will act decisively. We’re prepared for a second round, a third round—whatever it takes to defend our economy.”
According to a report by Radio Canada, the Trudeau government has already prepared an initial wave of counter-tariffs targeting approximately $37 billion in US goods, ranging from agricultural products to industrial machinery. Additional measures, which could escalate to impact $110 billion in bilateral trade, are designed to strategically pressure the US while minimizing collateral damage to Canadian industries. The plan, reportedly developed in consultation with key stakeholders, reflects Canada’s intention to respond proportionately yet forcefully to any economic aggression.
The tariffs, proposed as part of Trump’s broader protectionist agenda, represent a significant departure from decades of economic integration and cooperation under the North American Free Trade Agreement (NAFTA) and its successor, the US-Mexico-Canada Agreement (USMCA). Critics of Trump’s approach, including many US-based economists and industry leaders, have warned that such measures could backfire by disrupting supply chains, raising consumer prices, and undermining long-term economic growth in both countries.
The Canada-US Relations Council meeting also served as a platform to consolidate support from business and labor leaders across the country. Trudeau described the Council as “Team Canada,” emphasizing the importance of unity and collaboration in responding to the challenges posed by Trump’s policies. “We’ve brought together leaders from diverse fields, representing all regions and perspectives of our country. This is not just about defending Canada’s economy—it’s about protecting the livelihoods of millions of Canadians and preserving the principles of fair trade,” he said.
The looming trade standoff comes just days before Trump’s official inauguration on January 20. The incoming president has made no secret of his intention to implement a range of protectionist measures aimed at reducing US trade deficits and bolstering domestic industries. Trump’s team has also signaled its intent to renegotiate existing trade agreements to favor American interests, sparking widespread concern among key trading partners, including Canada, Mexico, and China.
Trudeau’s strong stance highlights the growing tensions between the two countries and the stakes involved in preserving their economic relationship. The meeting also served as an opportunity for Canadian officials to reaffirm their commitment to open trade and international cooperation, even as protectionist pressures mount globally.
As the January 20 inauguration approaches, the international community is closely watching the unfolding developments. The prospect of a US-Canada trade war raises significant questions about the future of North American economic integration and the potential ripple effects on global trade. For now, Canada remains steadfast in its resolve to defend its interests while urging the US to reconsider policies that could jeopardize one of the world’s most successful trade partnerships.
