Canadian prime minister Justin Trudeau launched a broadside at Donald Trump’s 25 percent tariffs late Saturday, telling him they will cost American jobs—and revealing that the new president is refusing to take his calls.
The northern neighbor’s leader scoffed at Trump’s claim that he was acting because of fentanyl crossing the border, announced his own 25 percent tariffs, and warned Canada has “leverage” including its vast mineral resources and oil industry.
Speaking hours after the Star-Spangled Banner was booed at a hockey game in Ottawa, Trudeau spelled out an aggressive response of his own to the sudden trade sanctions. At almost exactly the same time, Mexican president Claudia Sheinbaum imposed retaliatory tariffs to match Trump’s on her country—meaning America, for the first time in history, is in a trade war with its northern and southern neighbors.
Trump had signed an executive order putting 25 percent on almost all imports and 10 percent on energy earlier on Saturday afternoon, claiming that Canada was letting drugs and illegal immigrants cross the border. The same tariffs apply to Mexico but not to China. Even the mention of the tariffs on Friday had caused a market sell-off, leading to fears of a stock market plunge on Monday.
Trudeau said he wanted to speak directly to Americans, and said, “Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly and other manufacturing facilities. They will raise costs for you, including food at the grocery store and gas at the pump.”
“Americans need our oil and gas, they need our car parts, they need our agricultural products,” he said bluntly. “There are many things which Canada produces which we sell to America which they depend upon for their economy. The tariffs on 25 percent of everything that Canada produces will hurt Americans, including consumers.
“It will be a big challenge, for example, for the car industry. We will be there to encourage Americans to go back on these tariffs. We do not want to be in this situation, to be clear—this is the choice of America."
He added: “The coming weeks will be difficult for Canadians. The coming weeks will be difficult for Americans. We don’t want to be here. We didn’t ask for this. But we won’t back down.”
Trudeau said he had been trying to speak to Trump “since the inauguration” and said, “I hope to speak to him soon.” The Canadian prime minister—who is essentially acting in the job after saying he was waiting for his party to replace him with a new leader—had gone to Mar-a-Lago in November, only for Trump to mock that he wanted to make the country the 51st state and troll Trudeau as “Governor Trudeau.”
Trudeau tried to thread a needle to suggest that Trump was acting without American support, saying, “I think Canadians are a little perplexed as to why our closest friends and neighbors are choosing to target us. I don’t think there’s a lot of Americans waking up in the morning thinking ‘damn Canada, let’s go after Canada.’”
The move to tariff American imports to Canada on a tit-for-tat basis, with an emphasis on products from red states such as bourbon, will hit $155 billion of U.S. goods, a big blow to American exporters. But it is the impact for American consumers and workers which is Canada’s most potent tool: Trump was elected on the back of anger at persistent inflation, but now risks significant price increases on consumer goods across the board.
The American motor industry, especially in Michigan, where Trump flipped the state Republican, is highly integrated with Canada’s, relying on it for key parts. The prospect of factories jacking up prices or running out of parts would be a significant crisis for Trump.
Mexico has its own weapons, including guacamole: avocados will almost rise in price by as much as 25 percent days before the Super Bowl.
