The Canadian government is examining the possibility of imposing additional customs duties on American products in response to threats from Donald Trump, who wants to tax Canadian imports at 25% from January. Canada took these statements very seriously and began a process to identify products that could be targeted in the event of retaliation.
Canadian Prime Minister Justin Trudeau expressed skepticism on Friday about a possible reversal by the former US president. “When Donald Trump makes such statements, he intends to carry them out. There is no doubt about it,” he said during a trip. Some analysts, however, hope that these tariff threats are just a negotiating tactic.
Canada particularly vulnerable
Canada, whose economy is closely linked to that of the United States, would be particularly vulnerable to such measures. In 2023, more than 75% of Canadian exports, or 592 billion Canadian dollars (400 billion euros), were destined for its neighbor. These trades support nearly 2 million jobs in a country of around 41 million people.
“Customs duties of 25% on Canadian imports would harm not only Canadians, but also Americans,” insisted Mr. Trudeau, recalling that the economies of the two countries are deeply interconnected.
Already tense commercial relations
This is not the first time that trade relations between the two countries have been put to the test. During Donald Trump’s first term, Washington imposed tariffs of 25% on Canadian steel and 10% on aluminum. In response, Ottawa targeted certain American products to compensate for the losses.
But these new trade tensions come at a delicate time for Justin Trudeau, seeking re-election. Left behind in the polls by his conservative rival Pierre Poilievre, he must juggle economic challenges, national interests and diplomatic pressures. A tariff escalation would risk adding additional difficulty to an already complex situation.