Ottawa – Agencies

Canadian Prime Minister Justin Trudeau warned that his country may face tough economic challenges if the administration of U.S. President Donald Trump proceeds with its decision to impose new tariffs on Canadian imports starting tomorrow.

Trudeau stated in press comments today that he does not want to sugarcoat the reality, emphasizing that this step could have serious consequences for the Canadian economy, but he also stressed that Canada is prepared to face any trade escalation.

Canada prepares for a firm response

The Canadian Prime Minister added that his government is closely monitoring developments, indicating that Ottawa will not remain idle if Washington decides to impose new tariffs on steel, aluminum, and auto parts.

Trudeau said:

“We prefer diplomatic solutions, but we are ready to take appropriate measures to protect Canadian workers and companies. We have plans to deal with this situation, and we will not hesitate to defend Canada’s interests.”

Warnings of widespread economic impacts

This warning comes at a time when trade tensions between Canada and the United States are escalating, amid concerns that U.S. tariffs could lead to rising prices of goods, reduced investments, and increased pressure on major Canadian industries.

For her part, Canadian Finance Minister Chrystia Freeland confirmed that her country is exploring all possible options to respond to any U.S. trade actions, including imposing retaliatory tariffs on American products.

New escalation in trade relations between the two countries

Trump had previously announced that the new tariffs will take effect on Saturday, February 1, 2025, in a move that could reignite the trade tensions that the two countries experienced during his previous term, when Washington imposed tariffs on Canadian steel and aluminum exports, prompting Ottawa to respond with similar tariffs on American products.

What’s next?

In light of the ongoing uncertainty regarding the final U.S. position, Canada remains on high alert for any developments. As diplomatic talks between the two countries continue, economists are watching for the implications of this trade dispute on Canadian and American markets and businesses, at a time when the global economy faces increasing challenges.