On November 25, US President-elect Donald Trump mentioned on his social media that if he takes office, he will impose a 25% tariff on all imports from Canada and Mexico. He said that unless Canada and Mexico take measures against illegal drugs and illegal immigration, the tariffs will start on January 20, 2025, the day of the presidential inauguration.
Furthermore, under the United States-Mexico-Canada Agreement, many imports and exports are duty-free in trade between the three countries. Therefore, the announcement of the 25% tariff came as a shock to Canada. The Canadian dollar temporarily plummeted, and experts are concerned about accelerating inflation, suppressing growth, and affecting the supply chain.
Crude oil and gas, which account for Canada’s top exports to the United States, and auto parts, which travel frequently between the two countries, are expected to be hit hard.
Prime Minister Justin Trudeau revealed that he had spoken by phone with Trump. He also spoke by phone with Ontario Premier Doug Ford and others and held an emergency meeting with the premiers of each province on the 27th. Premier Ford expressed his anger at the move, saying, “It’s like a stab to the heart of my family.”