After Trump threats, Trudeau’s Canada warns US of revenge tariff hikes

After US President-elect Donald Trump warned Canada of a 25% tariff on all Canadian products, Canada warned of retaliatory tariff measures on American products over border security. Canadian Ambassador to the US, Kirsten Hillman, said the option of tariff hikes was on the table for Canada if hit with punitive measures by Trump 2.0. However, Canada was also planning to buy helicopters and drones in its bid to shore up security at the US-Canada border.

Trump is set to take over officially on January 20.

Trump accused Canada of being lax on border security which was allowing entry of drugs and illegal immigrants into the US.

The Trump administration plans to control the flow of illegal immigrants and fentanyl across the US-Canada border through it. In a bid to address the US tariffs, Canada’s Public Safety Minister Dominic LeBlanc announced plans for border monitoring.

Canadian officials said they were preparing for all possibilities and considering which American items to target with tariffs in retaliation. The official emphasised that the final call had not been made. The person spoke on condition of anonymity, reported The Associated Press.

The news agency quoted officials without identifying them. Now, a top diplomat has warned the US of retaliatory tariff hikes if needed.

The Canada–United States border is the longest international border in the world. The boundary is 8,891 km long.

Illegal crossings from Canada into the US are much fewer than those from Mexico. US Border Patrol reported intercepting over 21,000 migrants crossing from Canada in the first 10 months of 2024, while more than 56,000 people were arrested crossing from Mexico in October alone, according to US Customs and Border Protection data.

The proposed measures to enhance border monitoring are part of a broader effort to demonstrate Canada’s commitment to securing its borders.

CANADA WANTS TO AVOID ECONOMIC STANDOFF BUT CAN RETALIATE IF NEEDED

While aiming to avoid an economic standoff, Canada is prepared to retaliate if needed, said a top Canadian diplomat.

Canadian Ambassador to the US, Kirsten Hillman, told CNN that retaliatory tariffs remained an option if the US moved forward with its tariff threats.

“We’re going to do everything we can to not get to that place because, as I say, the relationship [with the United States] is good,” said Hillman in an interview with CNN.

Hillman also noted that Canada had previously imposed tariffs on American steel and aluminium products.

When Trump imposed higher tariffs in his first term, Canada announced billions of new duties in 2018 against it in response to new taxes on Canadian steel and aluminium.

Canadian Foreign Affairs Minister Melanie Joly, stated during a virtual press conference on Monday that after Trump’s election, the federal government began implementing a plan to address potential tariff threats.

“Of course, we knew tariffs were a strategy he was willing to use, as he did during his first mandate,” Joly said during a virtual press conference, reported CBC News.

She also said that Canada has numerous tools to defend its economy and industries.

“We’ll make sure that we send a clear message to the Americans,” Joly added.

CANADA PREPARED WITH ‘ADDITIONAL MEASURES’ TOO

Public Safety Minister Dominic LeBlanc also told CBC that “the commissioner of the Royal Canadian Mounted Police (RCMP) and the president of the Canada Border Services Agency have prepared a list of ‘additional measures’ they think the government should approve quickly”.

He emphasised that Canada intends to address US concerns regarding fentanyl production and illegal migration.

He also discussed the meeting between Trump and Trudeau in Florida.

“It was a social evening, initially,” LeBlanc said. “Nobody gave us a checklist and said, ‘This is what.’ We talked about a shared commitment to do the work we want to do with them,” reported CBC News.

LeBlanc stated that the federal government fully supports Trump’s focus on combating fentanyl production and addressing illegal immigration.

“Our work now over the coming weeks is to continue the conversation, to show them why we think the Canadian border is secure, but also to recognise their concern around fentanyl or illegal migration,” LeBlanc said.

LeBlanc also noted plans to continue discussions with incoming US officials, including US Commerce Secretary Howard Lutnick, in the coming weeks.