Trudeau vows ‘fair’ Trump tariff response but won’t rule out energy cuts

Trudeau vows ‘fair’ Trump tariff response but won’t rule out energy cuts

Prime Minister Justin Trudeau said Wednesday any response to looming tariffs threatened by incoming U.S. president-elect Donald Trump. must be strong and shared by all regions of the country, but added “nothing is off the table” — including cutting off energy exports.

Trudeau was meeting Canada’s premiers in person in Ottawa on Wednesday to discuss the threat of tariffs from incoming U.S. president Donald Trump before he takes office for a second non-consecutive term on Jan. 20.

Trump has threatened to impose a sweeping 25 per cent tariff on all Canadian goods coming into the United States unless Canada tightens border security, but hasn’t backed down from the threat despite .

Speaking alongside the premiers after their meeting, Trudeau said the “excellent conversation” saw agreement that no one region of the country should “disproportionately bear the burden” in a response to those potential tariffs — an apparent allusion to energy-producing provinces like Alberta.

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“We have made it very clear that everything is on the table as potential responses,” Trudeau told reporters.

“But we’ve also been very, very clear that it has to be fair across the country if the American administration moves forward with its plans on tariffs.”


Click to play video: 'Trudeau meets Canadian premiers to talk about tariff threats'


Trudeau meets Canadian premiers to talk about tariff threats


Trudeau added in French he couldn’t say what Canada’s specific response will be until Trump’s measures are announced, but that everyone agreed “unanimously” on “the first possible steps.”

However, Alberta Premier Danielle Smith, who is not in favour of blocking energy exports to the U.S. and has cautioned Ottawa against that retaliatory move, did not sign on to the federal government’s plan.

“Federal government officials continue to publicly and privately float the idea of cutting off energy supply to the U.S. and imposing export tariffs on Alberta energy and other products to the United States,” Smith wrote in a statement on social media.

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“Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs.”

Smith participated in the meeting virtually and was the only premier who did not participate in the closing press conference. She met with Trump at his Mar-a-Lago resort in Florida and is attending Trump’s inauguration on Monday.

Ontario Premier Doug Ford, who called for Wednesday’s meeting as chair of the Council of the Federation and has pushed for including energy embargoes as a potential response, said he respected Smith’s position but disagreed with her approach.


“I have a little bit of a different theory: protect your jurisdiction, but Canada comes first,” he said.

“No one’s exempt” from the impacts Trump’s tariffs will bring, he added.

Trudeau noted Trump’s tariff threat and other comments targeting Canada appeared focused on the Ontario auto sector rather than Alberta oil and gas.

“You don’t hear Doug saying, ‘No matter what we got to protect (Ontario auto manufacturing) … at the expense of everything else,” Trudeau said.

The prime minister also said he supported the “principle” of dollar-for-dollar tariffs on U.S. imports but that the focus is on ensuring any tariffs laid by Trump are removed as soon as possible.

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Canada’s retaliatory tariffs on American goods during Trump’s first term, when he tariffed Canadian steel and aluminum, were worth $16.6 billion. Trump’s threatened tariffs this time are expected to be far more wide-ranging.

Ahead of the meeting, Ford, donning a hat that said “Canada Is Not For Sale,” said Canada will need “tough retaliatory tariffs to defend the country.”

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“When they attack our country, when they attack our people, when they attack the jobs of hard-working Canadians, we can’t sit back and say keep attacking,” Ford told reporters in Ottawa.

“You have to hit back with every single tool we have in our toolbox and that’s the message to the premiers today.”


Ontario Premier Doug Ford arrives for a first ministers meeting in Ottawa on Wednesday.


THE CANADIAN PRESS/Sean Kilpatrick

NDP Leader Jagmeet Singh has called on all political leaders in Canada to stop exporting critical minerals to the U.S. in response, saying on Monday that “there’s no quicker way to get Donald Trump to back away from tariffs.”

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Saskatchewan Premier Scott Moe has also pushed back on the idea of restricting Canadian energy and agricultural exports to the United States.

Moe said on Wednesday that a broad-based tariff war is “counterproductive” and “not good for Canada.”

He said instead the focus of the discussions should be on continuing to build on what has been successful in North America, such as providing food, energy or manufacturing security.

Following the meeting, Moe said while there may be disagreements among the premiers and with the federal government, all leaders were coming together.

“Canadians can be thankful that there are 13 premiers, a prime minister and a few federal ministers who are coming together … to hash out and work through what those differences might be,” he said.


Click to play video: 'Doug Ford sports ‘Canada is not for sale’ hat, warns U.S. of retaliation ‘beyond tariffs’'


Doug Ford sports ‘Canada is not for sale’ hat, warns U.S. of retaliation ‘beyond tariffs’


Speaking to reporters ahead of the meeting, territorial leaders said on Wednesday that they want clarity on the “blueprint” on how to engage with the U.S. after Jan. 20 and called for reducing reliance on the U.S.

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Newfoundland and Labrador Premier Andrew Furey said Canada needs a “proportional” and “strong response” to the tariffs if they do go ahead.

“I’ve said all along we need to be very united, very strategic and very proportional in how we respond to any tariffs from the United States,” Furey told reporters in Ottawa before the meeting.

Quebec Premier Francois Legault said retaliatory tariffs are not the first choice, but if Trump imposes tariffs on Canada, they will have to prepare a retaliation plan.

This is the second meeting on U.S.-Canada relations that Trudeau convened with the premiers since Trump’s announcement in late November 2024.

It comes in the middle of a Liberal leadership race to find a replacement for Trudeau, who announced last week that he plans to step down.

At their last meeting on Dec. 11, 2024, which was held virtually, Trudeau shared an “overview” of the federal government’s plan to strengthen border security with the premiers and discussed potential responses to the tariff threat.


Click to play video: 'Trump’s tariffs on Canadian imports ‘likely,’ Danielle Smith warns'


Trump’s tariffs on Canadian imports ‘likely,’ Danielle Smith warns


Calls for government action

Canadian Manufacturers and Exporters called for “urgent action” to protect the manufacturing sector in a letter sent to Trudeau and federal party leaders on Wednesday.

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The group, which represents more than 2,500 companies, wants the government to provide short-term tariff relief, investment incentives and supply chain support if Trump follows through on his threat.

“If U.S. tariffs proceed, they will present an immediate and severe risk to thousands of businesses and workers across the country,” Dennis Darby, president and CEO of CME, said in a statement.

“Without swift and targeted government action, these tariffs will devastate investment, disrupt supply chains, and weaken Canada’s industrial base.”


Click to play video: 'Trump tariff threat: Energy sector prepares for ‘billions of dollars of impact’'


Trump tariff threat: Energy sector prepares for ‘billions of dollars of impact’


Canadian businesses are also growing concerned about the potential impact of the tariffs.

The Canadian Federation of Independent Business (CFIB) warned on Wednesday that a 25 per cent tariff imposed by the U.S. and any potential retaliatory tariffs from Canada would force two-thirds of small businesses to hike prices.

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“A trade war would be disastrous for both Canadian small businesses and consumers. We need to ensure that as governments face the tariff threat with their American counterparts, they must also stay focused on keeping Canadian businesses competitive at home,” said Corinne Pohlmann, executive vice-president of advocacy at the CFIB.

“The solution is a no-brainer. This is an SOS call to all governments: reduce red tape, eliminate internal trade barriers, and ease the tax burden on small businesses.”

The CFIB said it sent a letter to premiers earlier this week to express concerns over the tariff threat and give recommendations on how to respond.

In a letter to Trudeau on Wednesday, Singh requested wider discussions around tariffs to also include federal party leaders, Indigenous organizations, labour unions and industrial and business leaders.

“We cannot continue with an everybody-for-themselves approach,” Singh wrote in the letter shared on X.  

“Bringing all these voices together to one common table will better coordinate these efforts. And it will help forge the all-hands-on-deck approach that this moment demands.”

–with files from The Canadian Press