Trump’s inauguration arrives, and Trudeau cabinet braces for trade war
Global News
Donald Trump has pledged to sign an executive order on inauguration day to impose 25 per cent tariffs on products from Canada and Mexico.
Federal cabinet ministers are gathering in Montebello, Que., today as Donald Trump returns to the White House.
Trump has pledged to sign an executive order on inauguration day to impose 25 per cent tariffs on products from Canada and Mexico.
When he first made the threat, the president-elect said the tariffs were a response to what he called inaction by both countries on keeping migrants and illegal drugs out of the United States.
The Liberal government laid out a $1.3-billion plan to beef up the border in December that includes extra police and border guards, helicopters, drones and drug-sniffing dogs.
Trump has since pivoted to saying the tariffs are being introduced because of the United States’ trade deficit with Canada.
The federal government has prepared several plans to respond if the levies come into place today — plans that could include billions of dollars in retaliatory tariffs.
Two federal government sources who were not authorized to speak publicly about details of the plan say the government is waiting to see what happens Monday before revealing its response.
The sources say that if Trump sets the tariffs at 25 per cent, Canada’s opening salvo would be counter-tariffs worth roughly $37 billion, with a possible second wave of tariffs worth another $110 billion.
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