Donald Trump is “picking the wrong target” by threatening Canada with sweeping tariffs, Quebec’s premier says.
As Francois Legault wrote Wednesday in The Hill, a U.S. political news website, the president-elect’s proposal of a 25 per cent tariff on all Canadian exports “can backfire.”
“Canada will not become the 51st state in the union, but our economies are so intertwined that in terms of trade, we already have a customs union,” Legault wrote in his opinion piece.
“This free trade in goods between our two countries … has greatly enriched our economies and our peoples. Instead of turning on each other, let’s keep on building a great North American economic powerhouse: it’s in our mutual interest.”
Trump’s tariff threat, which includes Mexico, stems from his demand the two allies tighten border security. Ottawa finally unveiled a detailed plan Wednesday, but Trump has not backed down.
In his column, Legault said Quebec shares Trump’s concerns for the border, as well as military spending but added implementing tariffs as soon as he’s sworn in as president Jan. 20 would be a mistake.
“Trump should give Canada time to meet his expectations on these two issues before imposing tariffs that would do great harm to our two countries,” he wrote.
“Ever since the free trade agreement signed by President Ronald Reagan, the economies of Quebec (to speak of what I know best) and the U.S. are so integrated that customs tariffs on our products would inflict severe self-harm on the American economy.”
Legault went on to list just how intertwined the two economies are, saying Quebec supplies 64 per cent of raw aluminum used by American companies, is a major supplier U.S. military aviation supplies as well as its large supply of critical minerals.
He added a provincial analysis showed a 25 per cent tariff on exports from Canada and Mexico would reduce American GDP by at least 1 per cent over one year, and spark inflation.
Trudeau vows ‘fair’ tariff, won’t rule out energy cuts
Prime Minister Justin Trudeau said Wednesday any response to the looming tariffs 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, and 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.
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.
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.
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.
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.
— with files from Saba Aziz and Sean Boynton