Donald Trump’s threat to heavily tax goods from Canada has sent that government’s politicians into a tizzy.
The president-elect’s pledge on Truth Social to impose a 25 percent tariff on “ALL” products from Canada and Mexico prompted an emergency debate in Ottawa, a special Cabinet meeting, an evening teleconference between Prime Minister Justin Trudeau and his provincial counterparts, and a press conference during which Ontario Premier Doug Ford likened the threat to “a family member stabbing you in the heart,” write Sue Allan and Mickey Djuric. The move could have major consequences for both countries’ economies, especially as it relates to energy. The tariffs could inflate the cost of producing and buying energy in almost all forms, possibly sending U.S. gasoline and electricity prices soaring. In Canada, the tariffs could lead to less oil production, which could mean job cuts, lost revenue for social services and even a devaluation of the Canadian dollar, analysts say. Canada’s reaction is just one example of how Trump’s policy proposals are already rattling other countries, threatening to upend and rearrange international relations and alliances. Last month, some diplomats at the U.N. climate summit said they hope China will step up as the new global leader in combating climate change, as Trump prepares to withdraw the U.S. from the Paris climate agreement. On Friday, Trudeau flew to Florida to have dinner with Trump in a meeting that a senior Canadian government official described as “very friendly, very positive.” Trump called the meeting “very productive” and noted it included talk of energy, trade and the Arctic. Trudeau told reporters earlier that day that he would “keep us moving forward” through lots of “constructive, real conversations with President Trump.”
But it’s unclear whether that will be enough to convince Canadians that Trudeau is the best leader to handle Trump 2.0. Canada could hold an election next fall — if not before — and the polls are not looking good for Trudeau’s three-term minority Liberal government. Conservative Leader Pierre Poilievre — who has for years said “Canada is broken” — is more than 20 points ahead. His latest rallying cry is “Canada first.”
The border business has only emboldened his jeers. “Justin Trudeau broke the border,” Poilievre said last week. “We didn’t have these problems before Justin Trudeau.”
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