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'It's not realistic': Former PM Chretien thinks Trump will back off trade war

'It's not realistic': Former PM Chretien thinks Trump will back off trade war

CTV
Saturday, January 11, 2025 10:34 AM GMT

Former prime minister Jean Chretien says U.S. president-elect Donald Trump is likely to walk back his threat of punishing tariffs and the resulting trade war with Canada, because the Americans are too reliant on a number of Canadian exports, namely in the energy sector.

Former prime minister Jean Chrétien says U.S. president-elect Donald Trump is likely to walk back his threat of punishing tariffs and the resulting trade war with Canada, because the Americans are too reliant on a number of Canadian exports, namely in the energy sector.

"He's apparently said this morning that he does not need our electricity. Fine," Chrétien said in an exclusive broadcast interview with CTV Question Period, airing Sunday. "If he wants us to cut off electricity, he would have to walk up the Trump Tower with candles to go to his office, because the state of New York relies a lot on electricity coming from Canada."

"So it's not realistic," Chrétien also said to host Vassy Kapelos.

Trump has threatened to impose blanket 25 per cent tariffs on all imports from Canada and Mexico. While Trump initially signalled the issue at hand was the flow of illegal drugs and migrants over the border, lately the incoming president has defended the tariffs on their own merit, despite the impact they would have on the American economy.

In response, Ontario Premier Doug Ford has previously threatened to cut off electricity from his province to 1.5 million homes in New York, Michigan and Minnesota as a "last resort" if Trump follows through on this threat. But this past week, Ford struck a more collaborative tone, pitching an energy plan dubbed "Fortress Am-Can" that would rely and build upon Ontario's existing nuclear infrastructure to deliver more power south of the border.

Alberta Premier Danielle Smith, Quebec Premier Francois Legault and Newfoundland and Labrador Premier Andrew Furey have said they are opposed to cutting off energy exports to retaliate.

Chrétien — who served as Canada's 20th prime minister from 1993 to 2003 — said trade negotiations and other bilateral issues have, and always will, occur with the country's closest neighbour and ally.

Read full story on CTV
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