Prime Minister Justin Trudeau says radical prices By the American president, Donald Trump is a “very stupid thing to do”, while warning the Canadians of a “difficult” road to come.
Trudeau made the comments after the first cycle of American prices and the Canada’s counter-tale entered into force on Tuesday, marking the start of a trade war between the long-standing North American allies.
“HAS My Canadian compatriots, I’m not going to get it back. It will be difficult, even if we will all come together because that’s what we do, ” Trudeau said at a press conference in Ottawa.
On Tuesday, a 25% rate was imposed on all goods entering the United States from Canada and Mexico, with a 10% tariff on Canada’s energy exports.
In response, Canada retaliated with an initial price of 25% out of $ 30 billion in American goods, with additional prices of an additional $ 125 billion of American products to come three weeks later, said Trudeau.
“Canada will not let this unjustified decision remain unanswered,” Trudeau said in a statement on Monday evening, a few hours before the United States deadline.
“Our prices will remain in place until the American commercial action is withdrawn and if the American rates will not stop, we are in active and in progress discussions with the provinces and the territories to continue several non-pricing measures,” he added.
“While we urge the US administration to reconsider their prices, Canada remains firm to defend our economy, our jobs, our workers and for a fair agreement.”
In addition to the counter-tariffs, Ottawa will also make dispute resolution complaints from the World Trade Organization and through the American-Mexico-Canada (USMCA) agreement for these “illegal actions”, Trudeau to journalists told Tuesday.
“The Canadians are reasonable and we are polite, but we will not back up a fight, not when our country and everyone’s well-being are at stake,” he said, adding that “it’s time to retaliate hard and demonstrate that a fight with Canada will not have winners.”
Trump had signed a decree on February 1 to perceive tasks on the neighbors of the United States, initially citing concerns about the flow of illegal migrants and fentanyl.
The general prices were suspended for 30 days after new border security commitments were made by Canada, but Trump pulled the trigger on Tuesday.
In response to Trump’s original vow of 25% of rates on Canadian products, Canada has published its own list of expected counter-tale.
Trudeau said that there was “absolutely no justification” for American prices, arguing that Canada had required its promises to strengthen border security, including a plan of $ 1.3 billion and the appointment of a new fentanyl tsar.
Trump has repeatedly quoted the flow of fentanyl as a reason to impose prices in Canada and Mexico.
Trudeau said that this excuse was “completely false”.
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“So we have to fall back on the only thing he said on several occasions – that he wants is to see a total collapse of the Canadian economy, because it will facilitate annexing us, is the second half of his thought.”
It will never happen, “he said.
Speaking directly to Trump, Trudeau said: “Now, it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even if you are a very intelligent guy, it’s a very stupid thing to do.”
He was referring to an opinion play on Monday WSJ entitled: “Trump makes the stretch price.”
To help Canadian workers and businesses manage the impact of trade war, the federal government will use “each tool available to us,” said Trudeau. This includes the search for employment insurance changes, he said.
“We are going to examine, including looking in the day to come, things we can do around the adjustment of the EI, to support people during this difficult period.”
In the meantime, Canada is preparing for two other tariff cycles Threatened by the Trump administration, including 25% additional tasks on all steel and aluminum imports from the United States, including Canada, which is expected to come into force on March 12.
On April 2, Trump also plans to impose global reciprocal rates on all American business partners, including Canada.
How the provinces react
The Canadian provinces quickly responded with their own reprisal measures.
Ontario Premier Doug Ford said he followed measures announced previously, in particular by tearing an agreement of $ 100 million with SpaceX from Elon Musk for Starlink Internet in distant regions.
The LCBO also received the order to withdraw us the alcohol Of its shelves and American companies will be prohibited from teaching on public contracts.
In addition, Ford said he could legislate buy OntarioAnd went to American television threatening to cut energy to certain states on the prices. His team said these threats would not occur at the same time and are gradually.
Alberta First Danielle Smith Called Trump’s prices “stupid” And “an unjustifiable economic attack against Canadians and Albertans”. Smith said it supported the federal government’s response.
“It is now time for us to unite as provinces and countries,” she said in a statement.
First Brunswick Susan Holt Trump’s “illegal and unjustified” prices will have a significant impact in the province, but this could be an opportunity to open new markets.
The government of New Brunswick has already stopped buying American products and it is working to raise interprotrocial commercial barriers, Holt said.
In her “response plan to four pillars”, the province revealed on Tuesday that she planned to support affected brunswickers, relieve companies, break down interprominal trade barriers and promote an “NB Made” campaign.
New Minister of Nova Scotia Tim Houston said the province will also respond immediately by limiting access to provincial purchases for American companies.
Houston said the Nova Scotia Liquor Corp. had been responsible for withdrawing all the American alcohols from its shelves, and that the government will double the tolls of the Cobequid pass for American commercial vehicles traveling on this section of road in the north of the province.
Conservative chief Pierre Hairy said that Trump “had stabbed the best American friend in the back.”
“My message to the president is as follows: Canada will retaliate,” said Hairy.
Speaking at a press conference in Ottawa on Tuesday, he added: “There is no doubt that our economy will suffer, but the president of Trump’s presidency too. In fact, you already pay the price with billions of dollars deleted in market value during the last month of these threats. »»
The NPD chief, Jagmeet Singh, called for an emergency session of the Parliament, which was extended until March 24 to allow the Liberal Party to organize a management competition, scheduled for March 9 and a transition from a Prime Minister to a new one.
“The impact of this is probably the worst economic attack in our country that we have known in our lives and the repercussions can be devastating,” he said.
The Minister of Natural Resources, Jonathan Wilkinson, told journalists in Toronto that Trump prices guarantee “we can no longer count on the Americans in the way we have in the past”.
“We will never return where we were three months ago with our friends in the United States,” he said. “We can never trust them in the same way as before.”
“ No one wins’: Canadian companies raise concerns
Business groups in Canada are concerned about the impact of trade war, urging the federal government for their support.
The Canada Business Council said the American prices on Canada violate the United States-Mexico-Canada (USMCA) agreement.
“No one is gaining in a trade war and the prices imposed today by the Trump administration will injure workers, farmers and families across North America – in particular those in the United States,” said Goldy Hyder, president and chief executive officer of the Business Council of Canada, in a statement.
Dan Kelly, president of the Canadian Federation of Independent Affairs (CFIB), said that the 25% radical prices imposed by the Trump administration are a “large side of the Canadian economy”.
“Many small businesses have already experienced higher costs, canceled contracts / orders and a drop in demand due to current threats. Now that they have been imposed, we expect to see these challenges intensifying quickly, “Kelly said in a statement.
The American move was also sentenced on Tuesday by Canadian manufacturers and exporters, saying that it “threatens the future of the most successful economic relationship in the world”.
“At a time of global economic uncertainty, our two countries should work together to strengthen the North American industry – and not to implement measures that will harm businesses, workers and consumers in both countries,” said Dennis Darby, president and chief executive officer of CME.
He also called Ottawa to “act quickly to protect jobs and relieve manufacturers most affected by these prices”.
– With Sean Boynton files from Global News, Aaron d’Andrea, Sawyer Bodgan, Phil Heidenreich and Rebecca Lau