Canadian Prime Minister Justin Trudeau has cautioned former US President Donald Trump that his proposed tariffs on Canadian goods could harm American consumers and businesses as well. The warning was delivered during a dinner meeting at Trump’s Mar-a-Lago resort, according to Canadian Public Safety Minister Dominic LeBlanc, who attended the event.
The meeting was requested by Trudeau in response to Trump’s threats to impose a sweeping 25% tariff on all goods entering the United States from Canada and Mexico. Trump claimed the move would address issues such as drug trafficking and migration, tying the two nations to the problems at the US southern border.
Tariff Threat Sparks Concerns
Speaking in Parliament on Monday, LeBlanc emphasised the wide-reaching economic repercussions of such tariffs. “The prime minister, of course, spoke about the importance of protecting the Canadian economy and workers, but we also discussed with our American friends the negative impact those tariffs could have on affordability in the United States,” LeBlanc said.
Economists warn that tariffs would lead to price hikes for a wide range of goods, from food and clothing to vehicles and alcohol, counteracting Trump’s campaign pledge to reduce costs for American families. The Produce Distributors Association, a Washington-based trade group, has already expressed concerns that increased costs for fresh fruit and vegetables could harm US consumers and farmers, particularly when retaliation from Canada and Mexico is likely.
Potential Canadian Retaliation
While Trudeau left the meeting without concrete assurances that the tariffs would be reconsidered, Canada is reportedly exploring retaliatory measures. LeBlanc dismissed suggestions that the talks had been unproductive, calling them “far from empty-handed.” He noted that the discussions were constructive, with Trump committing to continued dialogue.
Canadian Ambassador to the US Kirsten Hillman reinforced Trudeau’s argument during the meeting. She pointed out the vast differences between the Canadian and Mexican borders in terms of migration and drug trafficking. “The message that our border is so vastly different from the Mexican border was really understood,” Hillman told the Associated Press.
Differing Realities at the Borders
Data highlights the stark contrast between the US’s northern and southern borders. US customs agents seized just 43 pounds of fentanyl at the Canadian border last fiscal year, compared to a staggering 21,100 pounds at the Mexican border. Moreover, the US Border Patrol reported 1.53 million migrant encounters at the Mexico border between October 2023 and September 2024, compared to only 23,721 at the Canadian border during the same period.
Despite these differences, Trump’s rhetoric has lumped Canada with Mexico in addressing migration and drug issues. Trudeau’s government has strongly rejected these associations, maintaining that Canada does not contribute significantly to the problems Trump has cited.
Mexican President Responds
Mexican President Claudia Sheinbaum also criticised the narrative emerging from the meeting. “Mexico must be respected, especially by its trading partners,” she said, adding that Canada has its own issues with fentanyl consumption. Sheinbaum defended Mexico’s cultural contributions and economic significance, urging mutual respect among the North American trade partners.
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US Cabinet Picks at the Table
Joining the dinner were key figures in Trump’s transition team, including commerce secretary nominee Howard Lutnick, North Dakota Governor Doug Burgum, and national security adviser pick Mike Waltz. LeBlanc indicated that the discussions covered not only tariffs but also broader trade relations and border security issues.
What Lies Ahead
While the meeting did not yield a resolution, the Canadian government continues to push for a constructive dialogue to prevent tariffs that could destabilise trade relations. “It was a productive discussion,” LeBlanc reiterated, pointing to the ongoing commitment to working with the incoming US administration.
As North American trading partners grapple with tensions, both Canada and Mexico have signalled their readiness to counter any protectionist measures. Economists and trade groups alike warn that escalating the situation could result in significant economic fallout on both sides of the border.
The meeting underscores the challenges ahead in maintaining the delicate balance of cooperation and competition in the North American trade bloc, with the livelihoods of millions hanging in the balance.
