Outgoing Canadian Prime Minister Justin Trudeau issued a warning Thursday, claiming American consumers will face higher costs if President Donald Trump proceeds with plans to impose 25% tariffs on Canadian imports. Trump told reporters in the Oval Office earlier in the day that he is prepared to enforce the tariffs starting February 1, citing concerns over illegal migration and fentanyl crossing the U.S. border via Canada and Mexico.
Trump described the influx of fentanyl coming from Canada and Mexico as “massive” and emphasized the need for stronger cooperation from both countries to address the issue. The proposed tariffs follow previous threats by Trump to implement sweeping measures against Canada, Mexico, and China during his first term, though they were delayed at the time.
Trudeau responded forcefully, stating that retaliatory tariffs would be applied if Trump moves forward. “Whether it be back on Jan. 20th, on Feb. 1st, or Feb. 15th as a Valentine’s Day present, or on April 1st or whenever, prices for American consumers on just about everything will go up,” Trudeau told reporters in Ottawa. He warned that while tariffs would hurt Canada, the impact on American consumers could also be significant.
Canada, which sends 75% of its exports to the U.S., is heavily reliant on cross-border trade. By comparison, the U.S. exports only 17% of its goods and services to Canada. Nearly $2.7 billion worth of goods cross the U.S.-Canada border daily, making Canada the largest export destination for 36 U.S. states. Alberta Premier Danielle Smith cautioned that Americans in some states could pay more than a dollar extra per gallon of gas if Canadian oil is hit with tariffs, noting that nearly 25% of the oil consumed in the U.S. comes from Canada.
In retaliation, Canada is considering tariffs on American products like orange juice, steel, and even toilets. Trudeau described these measures as “everything on the table” to counter potential U.S. tariffs. Canadian officials have expressed deep concern, as the tariffs could have widespread economic implications for their trade-dependent economy.
