The premiers will gather in Ottawa on Wednesday to meet with Prime Minister Justin Trudeau and discuss a looming threat that has the potential to send the economy into a tailspin: President-elect Donald Trump’s promised tariffs on all Canadian goods.
Trump will take office on Jan. 20 and then quickly implement his campaign pledge to impose punitive tariffs on imports from some countries, including Canada, to try to spur a crackdown on illegal drugs and immigrants entering the U.S. .
Economists have said the expected 25 per cent tariff would be devastating to the Canadian economy, shaving billions of dollars off GDP and jeopardizing some crucial industries.
Ontario Premier Doug Ford said Tuesday that “it won’t be good” if Trump does what he has said he will do.
Ford said up to 500,000 people in Ontario alone could be out of work if a broad-based tariff scheme is implemented. The government may have to spend billions of dollars in stimulus to shore up a faltering economy, he said.
Canada’s response to the tariff threat will be at the center of today’s first ministers’ meeting, which the premiers requested to get a better idea of what Ottawa has planned for the coming weeks. Most of the 13 prime ministers will be in the country’s capital, while some will join the conversation virtually.
To appease Trump’s demands, Ottawa has drawn up a border security plan that Trudeau is expected to share with the premiers at today’s meeting.
Finance Minister Dominic LeBlanc, who has taken the lead on Canada-U.S. issues, showed parts of the border plan to Ford on Tuesday ahead of the broader meeting with other provincial and territorial leaders.
The prime minister, who also chairs the Federation Council, told reporters that what he saw was “phenomenal” and called it “a solid, very solid plan.”
Ottawa plans to deploy more border and RCMP personnel along the 49th parallel, put more drones and helicopters in the skies over the border and fund the creation of about 80 new K9 units to better search for drugs like fentanyl at land crossings, among other initiatives. LeBlanc said.
During a news conference in Toronto with Ontario Premier Doug Ford, Finance Minister Dominic LeBlanc is asked if the federal government is considering restricting the shipment of Alberta oil to the United States in retaliation for possible tariffs. LeBlanc says the government has to see what the United States does, but added that it has to be prepared to implement all necessary measures to defend the Canadian economy.
If Trump isn’t happy with that plan and goes ahead with the tariffs anyway, Canada is also preparing to strike back with potential retaliatory tariffs on everything from Florida orange juice and Kentucky bourbon to Pennsylvania steel. , sources told CBC News.
LeBlanc said everything is on the table as Canada prepares for a trade war that could get ugly.
He has not ruled out stopping the flow of Canadian oil south to the United States, he said.
“We want to see what American action will be next week, if next week,” he said. “I think we must be prepared to implement all necessary measures.”
Prime Ministers make their case to Americans
Ford has said it is willing to suspend energy exports from Ontario to the United States, which could put an estimated 1.5 million American households in a bind, given how dependent some states are on the province’s electricity.
Since Trump’s election in November, many of the prime ministers have fanned out across the United States to try to convince Americans that it is a bad idea to take on Canada, given that the two economies are so intertwined.
A series of Ontario-funded ads have been invading US airwaves for weeks, touting the value of a close relationship between Canada and the United States.
Trump hosted Alberta Premier Danielle Smith at his Mar-a-Lago estate over the weekend.
Smith said they had a “friendly and constructive” conversation and emphasized that his province’s vast oil reserves are crucial to North America’s energy security and the continent’s gas prices.
But Smith said she has no indication that Trump is reconsidering his plan to impose tariffs on Canadian goods, which she said is motivated by his animosity over the U.S. trade deficit with Canada.
That trade deficit is largely due to strong U.S. demand for Canadian oil and natural gas, which it buys at a discount to global prices for those commodities.
As part of their campaign to neutralize the trade threat, prime ministers have had to respond to misleading information spread by Trump and his surrogates, who have misinterpreted bilateral trade deficit data and exaggerated illegal immigrant numbers.
They have also had to deal with Trump’s rhetoric about trying to annex Canada as the 51st state.
Trudeau, who is outgoing prime minister after announcing his intention to resign last week amid internal party pressure, will lead Canada through what is expected to be a tumultuous time until the Liberal Party elects its new leader in early March.
In addition to his meeting with the prime ministers, Trudeau has announced that he will call a cabinet retreat in Quebec next week to continue crafting some kind of plan for Canada facing such a serious economic threat.
“Our government is firmly focused on protecting and defending Canadian interests. With the threat of tariffs from the incoming United States administration, Team Canada will use expanded capabilities to strengthen Canada’s relationship with the United States, protect investment and Canadian jobs and make unequivocally clear the mutually beneficial relationship our two countries share,” Trudeau said in a news release.
Canadian business and labor groups are also mobilizing against Trump’s threat.
The Canada-United States Trade Council (CUSTC) has just launched a plan to convene regular meetings to share information and ideas on how best to address the expected tariff war and subsequent new NAFTA review phase.
The trade council will draw on advice from advisers such as Steve Verheul, Canada’s former top trade negotiator, cross-border experts such as Laura Dawson and former politicians such as James Moore and Jean Charest.
