OTTAWA — Canada wouldn’t instantly match any U.S. tariffs with “dollar for dollar” penalties on American merchandise coming into Canada — an method that Ontario Premier Doug Ford views as not “proportional” or robust sufficient to counter Donald Trump’s threats, the Star has discovered.
Prime Minister Justin Trudeau instructed premiers “everything is on the table” as he met them behind closed doorways Wednesday, sources stated.
However Trudeau conveyed his authorities’s reluctance to instantly levy dollar-for-dollar counter-tariffs as a result of Ottawa doesn’t but know whether or not the incoming Trump administration would observe by means of on Trump’s vow to slap a 25-per-cent surcharge on every thing Canada and Mexico ship to the U.S.
If the People go forward with that risk, it will symbolize an “absolutely massive” surcharge on Canadian exports to the U.S., with one authorities official saying a dollar-for-dollar counter-punch might require tariffs on $600 billion price of imports.
As an alternative, the federal authorities mentioned an preliminary listing that may see counter-tariffs on greater than $150 billion price of imports, stated a senior federal official. Relying on what Trump does, that would in truth be a dollar-for-dollar response, the official stated.
Trudeau instructed premiers it’s not essentially the tip of what Canada would do, the official added.
One other senior federal official, talking on a background-only foundation to transient reporters, stated that if Trump points tariffs however exempts Canadian oil and fuel, for instance, that may present the place the People really feel they’re susceptible.
However the official stated Trudeau has not dominated out any transfer to probably make People really feel the ache of upper priced Canadian oil exports – over the objection of Alberta. The second official stated the purpose is to to take actions that may make the People really feel ache and raise their tariffs, however not a lot that it will harm Canadians or result in a decade-long tariff warfare. The official famous that America refines and sells gas merchandise again to Canada and the federal authorities is conscious that export tariffs might additionally find yourself hurting Canadian households on the fuel pump.
Trudeau additionally urged premiers that everybody needs to be ready for a interval of ache.
The federal official stated three premiers within the room additionally urged their colleagues to not voice their complaints about Canada’s technique publicly, however to precise dissent with one another in personal — remarks that have been construed as geared toward Alberta Premier Danielle Smith.
Smith attended the assembly nearly, and a pool reporter stated her display was a tropical backdrop, prompting Québec Premier François Legault to ask if she was nonetheless at Trump’s Mar-a-Lago resort — which she visited final weekend.
Canada’s counter-tariff listing wouldn’t take quick impact however can be topic to a interval of public session.
On the finish of their assembly, first ministers tried to paper over cracks in Workforce Canada.
Premiers reversed a choice to carry a separate information convention from the prime minister.
Earlier, variations have been on full show.
Leaders of Ontario, Quebec and Newfoundland insisted power, vital minerals and hydroelectricity ought to be in play to counter Trump’s tariff threats –
Premier Doug Ford, sporting a ball cap with a “Canada Is Not For Sale” brand, stated the U.S. president-elect goes to “try to devastate our country,” and provinces with completely different pursuits can’t get in the best way Canada’s nationwide response.
Ford stated key commodity exports are amongst Canada’s “aces” in any commerce warfare.
“You’re in a card game, but you don’t show your opposition your cards. You have some aces to hold on to, those aces, but it’s all part of negotiation tactics,” he stated.
“I understand different jurisdictions around the country have their concerns,” stated Ford. “But nothing is more important than standing united.
“Nothing is more important than keeping every tool in our tool box, no matter if it’s energy or other commodities — high-grade nickel from Ontario, great aluminum from Quebec … potash from Saskatchewan. These are the tools that we have. You don’t negotiate through weakness, you negotiate through strength.”
Legault echoed that sentiment in French, saying whereas his high precedence is to forestall Trump from executing his risk of a 25-per-cent levies on all Canadian merchandise, “we have to prepare a retaliation plan.”
Legault stated the premiers will talk about “many scenarios” behind closed doorways Wednesday for the way Canada ought to react, however “we are excluding nothing” when it comes to what actions the federal authorities ought to take.
Newfoundland and Labrador Premier Andrew Furey used a chess analogy to clarify that oil and hydroelectricity exports ought to be thought of a part of how Canada might apply stress to the U.S.
“I see energy as Canada’s queen in this game of chess. We don’t need to expose our queen too early, and the opposition does need to know that the queen exist, but they don’t need to know what we’re going to do with the queen. So let’s see what the tariffs actually are first, and have a proportional, but let me be very clear, a strong response to the United States,” Furey stated.
“But we need to in no way, shape or form, let the urgency of this economic and fiscal crisis jeopardize our national identity.”
Smith is on report as opposing any federal transfer to weaponize oil and fuel exports towards the USA.
Saskatchewan Premier Scott Moe additionally warned that Canada mustn’t levy tariffs by itself merchandise, or prohibit power or different very important exports to the U.S. in different methods. He stated the leaders’ proposals mustn’t escalate “any of the divisions that we have in this nation or on this continent.”
As an alternative, Moe desires talks to deal with how built-in the economies of Canada and the U.S. are, and to “morph the discussion” with Trump again to what the international locations can do collectively to make sure power, meals and manufacturing “security.”
“Taxing Canadian-produced goods in the form of export tariffs … would be not only counterproductive to this entire conversation,” he stated, however would harm Canada. “Canada does not do well in that environment. I would say North Americans will not do well.”
The premiers met towards a backdrop of accelerating nationwide anxiousness as Trump’s inauguration looms, alongside together with his vow to impose tariffs on Canadian merchandise on his first day in workplace. That every one will increase political stress on Trudeau — who took no questions earlier than the assembly — and the premiers.
In a speech in Washington on Wednesday, Pure Assets Minister Jonathan Wilkinson pitched the advantages of free commerce, together with a proposal for an “alliance” between Canada and the U.S. on power and minerals, an concept that Ontario’s premier has additionally raised.
Wilkinson stated there are probabilities for each international locations to place cash towards initiatives to supply extra minerals like germanium and gallium in a approach that displaces provides at present supplied by China.
He additionally stated the international locations can collaborate to extend uranium provides to wean themselves off purchases from Russia, and to “enhance the flow” of crude oil from Alberta into the U.S. to assist Trump obtain his aim of “energy dominance.”
Trump, in a departure from President Joe Biden’s emphasis on local weather motion, has promised to “drill, baby drill” and improve American fossil-fuel manufacturing.
“While a single, talented player can make a difference, a well-coordinated team is unstoppable. Such is the energy and minerals relationship between Canada and the United States,” Wilkinson stated, in keeping with a draft of his speech that was supplied to the Star.
The specter of tariffs has spooked Canadian companies, with trade associations warning in regards to the damaging fallout of a commerce warfare with the nation’s largest business accomplice.
In a letter to Trudeau and opposition leaders, the pinnacle of the Canadian Producers and Exporters urged the federal authorities to reply to any American tariffs in a cautious and focused method “to minimize collateral damage.”
The letter additionally referred to as for presidency aid to cowl tariff-related prices that exporters would possibly incur for at the very least three months, together with different assist like deferred taxes to assist climate a possible commerce spat.
The affiliation stated MPs ought to be recalled if any laws is important to confront the scenario, after Trudeau prorogued Parliament when he introduced his intention to resign after the Liberal management race to switch him.
