Canada Ramps Up Efforts to Counter U.S. Tariff Threats

Ottawa, Ontario – Canada is taking swift action to strengthen its economic and trade ties with the United States while addressing the looming threat of new tariffs. At the core of the response is a $1.3 billion border plan that the federal government announced to improve security and streamline trade. This plan includes investments in expanded personnel, advanced technology, and enhanced coordination between law enforcement agencies.

Prime Minister Justin Trudeau and Canada’s premiers have committed to a united approach, meeting weekly to navigate the challenges posed by the newly inaugurated U.S. administration under President Donald J. Trump. At a virtual meeting today with provincial and territorial leaders, Trudeau emphasized the need for a “Team Canada” strategy to advocate for Canadian workers and businesses while strengthening ties with the United States.

Unjustified tariffs threaten not only Canadian jobs but also the economic competitiveness of all of North America,” the Prime Minister told First Ministers, highlighting the potential fallout of a 25 per cent tariff on Canadian goods. Such tariffs, Trudeau warned, would increase the cost of living for consumers in both countries and risk destabilizing the highly integrated Canada-U.S. supply chains.

Canada’s Strategy Against Tariffs

The federal government’s new border plan aims to address U.S. concerns about border security while promoting trade efficiency. Notably, the Canada-U.S. border accounts for less than 0.2 per cent of fentanyl seizures by U.S. Customs and Border Patrol and represents only a fraction of illegal crossings into the U.S., according to government data.

Provinces and territories are also stepping up, announcing complementary measures to enhance border security. First Ministers underscored their commitment to preventing tariffs and explored possible responses if the U.S. imposes them.

Canada is the United States’ closest friend, their strongest ally, and their biggest customer. pic.twitter.com/RLBCvTVvsP

— Justin Trudeau (@JustinTrudeau) January 22, 2025

Breaking Down Internal Trade Barriers

During the meeting, First Ministers acknowledged the need to bolster Canada’s economy through improved internal trade. They agreed that the Committee on Internal Trade should meet promptly to propose measures for reducing interprovincial trade barriers. This internal collaboration, they said, is crucial for demonstrating Canada’s economic strength and unity to the U.S. administration.

Transport Minister Anita Anand, Finance and Intergovernmental Affairs Minister Dominic LeBlanc, and Canada’s Ambassador to the United States, Kirsten Hillman, participated in the discussions, underscoring the importance of a cohesive national response.

Looking Ahead

First Ministers plan to reconvene next week to assess progress in addressing the tariff issue and strengthening Canada-U.S. relations. Trudeau thanked the premiers for their collaboration, stressing the importance of ongoing cooperation in navigating these challenges.

As Canada works to prevent tariffs and protect its workers, the country’s leaders remain committed to advocating for economic prosperity and maintaining a strong, mutually beneficial relationship with the United States.

SOURCES: PMO