Canadian Prime Minister Justin Trudeau has taken a bold stance against US President Donald Trump’s latest tariffs, calling them ‘a very dumb thing to do’. This fiery exchange marks a significant escalation in what has quickly turned into a trade war between two nations long viewed as allies.
Immediate Retaliation
In response to Trump imposing a 25 per cent tariff on approximately C$30 billion (S$27.8 billion) worth of Canadian goods, Trudeau announced that Canada would retaliate with its own similar tariffs. He stated that if necessary, additional tariffs could target up to C$125 billion worth of US imports within a matter of weeks.
- Trudeau expressed a commitment to challenging the US tariffs at the World Trade Organisation.
- He emphasised that Canadians would not back down, putting their well-being first.
Concerns Over Economic Impact
Experts warn that unless the tariffs are lifted quickly, Canada could face a recession, given that 75 per cent of its exports go to the United States. Trudeau noted that the interconnectedness of both economies means Americans would be affected too, adding fuel to his argument against the tariffs.
Long-Standing Tensions
Relations between Trudeau and Trump have been strained, with Trump previously mocking Trudeau’s position and suggesting that Canada should become the 51st state. In light of this, Trudeau’s recent remarks highlight just how much the diplomatic relationship is still in jeopardy.
During his address, Trudeau borrowed a sentiment from the Wall Street Journal to further critique Trump, stating, ‘it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.’
Supporting Canadians
As part of his response, Trudeau announced that the Canadian government will expand employment insurance benefits and introduce support packages aimed at helping workers and businesses affected by these tariffs.
Future of Canada-US Relations
With the US-Mexico-Canada Agreement already in place, which was negotiated by Trump during his first term, Trudeau suggested that opening negotiations under the current circumstances might be unwise due to the ‘bad faith’ exhibited by Trump.
As tensions continue to rise, Canadians have shown solidarity by considering a boycott of American goods, illustrating the extent of their frustration with the US administration’s policies.