Finance Minister Dominic LeBlanc says Donald Trump’s suggestion that he will impose sweeping tariffs on Canada on Feb. 1 is “nothing new,” and insists Canada has plans ready for several possible scenarios.
LeBlanc and Foreign Affairs Minister Mélanie Joly stepped out of a cabinet meeting in Montebello, Que. to deliver a statement to reassure Canadians after the newly installed U.S. president signed a stack of unrelated executive orders Monday evening.
Trump told reporters: “We are thinking in terms of 25 percent on Mexico and Canada because they are allowing vast number of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in.”
LeBlanc, who said Trump is known to be unpredictable, said that should not come as a surprise.
“Our country is absolutely ready to respond to any one of these scenarios,” he said.
“We still continue to believe that it would be a mistake for the American government to proceed with imposing tariffs.”
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Joly said the government’s plan is to keep working to prevent tariffs from happening, to prepare possible retaliatory actions and to create a long-term response.
She called on political leaders “across the board, across the country” to stand united. The pair did not take questions.
Earlier in the day, cabinet ministers were careful not to declare victory after Trump was sworn into office without mentioning Canada at all, and with no sign of the punishing tariffs he’s been threatening since the November election.
“We’re very cautious. We know we can make sure that this is a win-win relationship,” Joly told reporters in the afternoon.
Joly, who was in Washington last week, touted the relationship-building work she and her colleagues have been doing south of the border in an attempt to prevent the tariffs.
Despite that outreach, the federal government learned through a report in the Wall Street Journal on Monday morning that Trump planned instead to sign an executive order launching an investigation into alleged unfair trade and currency practices by Canada, Mexico and China.
Joly chalked up the lack of communication to “a level of disorganization” as the Trump administration takes over.
Trump had threatened back in November that a 25 percent across-the-board tariff on Canada would be one of his first actions on his first day back in office.
“This was news today. It is important news, and at the same time we will be working on preventing tariffs and preparing a response,” Joly said.
The federal government had several plans ready to deploy in the event Trump signed an executive order imposing tariffs on Monday.
The plans include billions of dollars in possible retaliatory tariffs hitting key U.S. sectors, including orange juice, ceramics, plastics and steel products. Prime Minister Justin Trudeau has said every commodity must be considered as part of the response, including energy exports.
When he first threatened the tariffs, Trump said they were a response to what he called a lack of action by Canada and Mexico to keep migrants and illegal drugs out of the United States.
The Liberal government laid out a $1.3-billion plan to shore up border security over six years in December that includes extra police and border guards, helicopters, drones and drug-sniffing dogs.
Public Safety Minister David McGuinty said the co-operation between Canadian and American officials on the border is very strong.
“I think it’s important for Canadians and Americans both to remember this: we have a very strong border, and what we’re doing is making it stronger,” he said.
Joly said “it was all about the border, and we did the job on the border,” adding that she got positive feedback in Washington about the changes Canada promised.
But in recent weeks, Trump has pivoted to saying the tariffs are being introduced because of the United States’ trade deficit with Canada.
“If the administration wants to study the economic and trade relationship between Canada and the United States, we think that’s a positive opportunity for us,” said LeBlanc.
