Canadian foreign minister warns of 'biggest trade war with US' as Trump's tariff threat looms

The looming threat of a trade war between Canada and the United States could become the most significant in decades if US President-elect Donald Trump follows through with his plans to impose 25% tariffs on Canadian imports, according to Canadian foreign minister Melanie Joly.
Speaking at a press conference in Washington on Friday, Joly described the potential conflict as a "trade war" initiated by the US, warning that Canada is prepared to retaliate with "Trump tax" on the US if needed.
"We are ready to put maximum pressure," Joly said, adding that it would be the "biggest trade war between Canada and the US in decades". Trump's tariff threat that also targeted Mexico and China would have severe consequences, particularly for Canadian consumers and jobs, a sentiment echoed by Prime Minister Justin Trudeau.
Trudeau, who has stressed Canada's desire to avoid a trade war, confirmed that the country is prepared for a "strong and unequivocal" response. "Nothing is off the table," he said, adding that retaliatory measures would be designed to ensure fairness across Canada. These measures could include tariffs on various American goods, including steel products, glassware, and even Florida orange juice, according to reports by news agency AFP.

The Canadian government is also looking at the possibility of halting energy exports, a proposal which has sparked debate. Alberta’s Premier Danielle Smith has opposed the move. Meanwhile, Ontario Premier Doug Ford has called for a unified Canadian response, stressing that Trump's actions affect all Canadians, not just specific regions.
The economic ramifications of a trade war could be severe. Experts have suggested that Canadian GDP could fall by over five percent, and inflation and unemployment rates could rise significantly. The US-Canada trade relationship is vital, with nearly $3.6 billion in goods and services crossing the border daily, and Canada being the largest export destination for 36 US states.
As the US president-elect prepares for his inauguration, his stance on trade has drawn sharp criticism. Trump's repeated assertion that Canada could become the 51st state has been met with firm resistance from Canadian leaders. Jagmeet Singh, leader of Canada’s New Democratic Party, described Trump as a “clear threat” to Canada’s economy and workforce. Singh warned that Trump’s tariff threats would worsen the cost of living in Canada, already a concern for many citizens.
Singh has also called for strong measures, including cutting off the supply of critical minerals to the US, which he argues would be an effective way to force Trump to reconsider his position. "If he wants to pick a fight with Canada, we have to make sure it’s clear that it’s going to hurt Americans as well," Singh said.