Canadian Prime Minister Justin Trudeau said on Friday that if U.S. President-elect Donald Trump follows through on his threat to impose widespread tariffs on Canadian products, it would raise prices for Americans and harm American businesses.
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Trump has threatened to impose tariffs on products from Canada and Mexico if those countries do not stop what he called the flow of drugs and migrants across the southern and northern borders. He said that one of his first executive orders would be to assign a 25% tax to all products entering the United States from Canada and Mexico.
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"It is important to understand that when he makes statements like that, Donald Trump plans to carry them out. Without a doubt," Trudeau told journalists on Prince Edward Island in the Canadian Atlantic."
"Our responsibility is to point out that not only would it harm Canadians, who work so well with the United States, but it would also increase prices for American citizens and harm the US industry and businesses."
Trudeau pointed out that Trump was elected because he promised to reduce the cost of food, but now he is talking about adding 25% to the cost of all kinds of products, including potatoes from Prince Edward Island.
Those tariffs could end the North American trade pact that Trump's team negotiated during his first term. Trudeau pointed out that they were able to successfully renegotiate the agreement, which he described as a "win-win" deal for both countries.
"We can work together as we did before," said Trudeau.
Trump made the tariff threat on Monday, while launching strong criticism of the increase in the number of illegal migrants, although the figures at the Canadian border pale in comparison to the southern border.
The United States Border Patrol made 56,530 arrests at the border with Mexico in October alone, and 23,721 arrests at the Canadian border between October 2023 and September 2024.
Trump also criticized fentanyl coming from Mexico and Canada, although seizures at the Canadian border are few compared to the Mexican border. U.S. customs agents seized 19.5 kilograms (43 pounds) of fentanyl at the Canadian border in the last fiscal year, compared to 9,570 kilograms (21,100 pounds) at the Mexican border.
Canadian authorities say it is unfair to compare Canada to Mexico, but they claim to be ready to make new investments in border security.
"We will work together to address some of the concerns," Trudeau said. "But ultimately, it is through the many real constructive conversations I will have with President Trump that we will continue to move forward on the right path for all Canadians."
Mexican President Claudia Sheinbaum said on Thursday that she trusts that a trade war with the United States will be avoided. Trump posted on social media that he had spoken with her and that the president had agreed to stop unauthorized migration across the border into the United States.