Canadian Prime Minister Justin Trudeau and Alberta Premier Danielle Smith remain optimistic about securing exemptions from the proposed 25% US tariffs, highlighting Canada’s vast energy resources and critical minerals critical to the US economy. The tariffs, set to take effect on February 1, have sparked sharp responses across Canada, with leaders preparing strong countermeasures.
Ontario Premier Doug Ford declared the tariffs an “economic war,” pledging immediate retaliation. Ford announced plans to remove US-made alcohol from Ontario’s liquor store shelves and impose dollar-for-dollar tariffs targeting Republican-held areas. “Americans will feel the pain, just as Canadians will,” he warned.
Trudeau, addressing a Cabinet retreat, stressed Canada’s importance to the US economy, noting that Canadian exports, including oil, aluminum, and critical minerals, are essential to Trump’s vision of a “booming” economy. Nearly 60% of US crude oil imports come from Canada, alongside 34 critical minerals sought by the Pentagon.
While Trump claims the tariffs aim to curb unauthorised migration and drug flows, US Customs data reveals most fentanyl seizures occur at the Mexican border, not Canada’s. Trade between Canada and the US totals USD 3.6 billion daily, with Canada serving as the top export destination for 36 US states.
Smith, Alberta’s premier, expressed confidence in securing a “total carve-out” from the tariffs by emphasising Canada’s role in addressing the US energy crisis. Meanwhile, Mexican President Claudia Sheinbaum urged calm, emphasising clear dispute resolution processes in the existing free trade agreement.
As tensions rise, Trudeau reassured Canadians, saying, “Canada has weathered such challenges before and will defend its economy with every tool available.”
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