Amid disagreements on how Canada should respond to U.S. tariff threats, Prime Minister Justin Trudeau has announced a cabinet retreat next week to discuss strategies for defending Canadian interests. The move comes as U.S. President-elect Donald Trump has pledged to impose a 25% tariff on Canadian imports, a decision economists warn could trigger a severe recession in Canada, with the U.S. being the destination for 75% of Canadian exports.
In a statement from Trudeau’s office, it was emphasized that the cabinet would focus on safeguarding Canada's interests while reinforcing the vital trade and security relationship with the United States. Trudeau, who is set to step down as prime minister in early March, has warned of countermeasures should Trump proceed with the tariffs. However, divisions are emerging within Canada, with some provinces expressing frustration over the federal government’s leadership.
Ontario Premier Doug Ford voiced concerns, saying the federal government needed to demonstrate strong leadership, particularly as Ontario could face the loss of up to 500,000 jobs due to potential tariffs. Premier Ford urged unity, calling for Canada to present a unified front in the face of the threat.
On the federal level, Foreign Minister Melanie Joly suggested that Canada might consider curbing energy exports to the U.S. in response to the tariffs. However, Alberta Premier Danielle Smith strongly opposed this, warning of a national unity crisis if such a measure were taken, after meeting with Trump in Florida.
The cabinet retreat scheduled for January 20-21 will coincide with Trump’s inauguration, and discussions are expected to cover national security concerns, with Trump previously expressing dissatisfaction over border security. Canada has already rolled out a C$1.3 billion border-security plan, focusing on intelligence and technology improvements to address these concerns.
