Trudeau Encourages US Consumers to Reflect on the Impact of Trump’s Tariff Threats

On October 11, 2017, President Donald Trump and Canadian Prime Minister Justin Trudeau smiled for a photo during Trudeau’s White House visit. (AP Photo/Carolyn Kaster, File)

In a statement on Sunday, outgoing Prime Minister Justin Trudeau of Canada indicated that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus away from the detrimental effects that significant tariffs would have on U.S. consumers.

Trump has threatened a 25% tariff on all imports from Canada.

“Canada becoming the 51st state isn’t going to happen,” Trudeau mentioned in an MSNBC interview. “Yet, discussions are centered around that, rather than the consequences of a 25% tariff (on) steel and aluminum entering the U.S.”

Trudeau further stated on MSNBC: “No U.S. citizen wants to incur a 25% increase in costs for electricity or oil and gas from Canada, which is a matter that I believe requires greater consideration.”

Trump has claimed that merging Canada with the U.S. would lead to lower taxes and eliminate tariffs.

“I recognize that as a deft negotiator, he enjoys keeping people off balance,” Trudeau remarked regarding Trump’s economic threats aimed at transforming Canada into the 51st state.

Furthermore, Trump has inaccurately referred to the U.S. trade deficit with Canada—a country rich in natural resources that supplies oil and other commodities—as being a subsidy.

Canadian officials have indicated that should Trump proceed with his proposed tariffs, Canada might respond with retaliatory tariffs on American goods such as orange juice, toilets, and certain steel products.

During Trump’s initial term, Canada retaliated against Trump’s tariffs on Canadian steel and aluminum with its own tariffs on U.S.-produced items like bourbon, Harley Davidson motorcycles, and playing cards.

“He was elected to enhance the lives of all Americans and to support American labor,” Trudeau expressed regarding Trump. “These (tariffs) are measures that will ultimately harm them.”

Last week, Trump stated that the U.S. does not rely on Canada for oil or other resources. However, approximately 25% of the daily oil consumption in the U.S. is sourced from Canada. The energy-abundant province of Alberta supplies around 4.3 million barrels of oil to the U.S. each day.

According to the United States Energy Information Administration, while the U.S. consumes 20 million barrels of oil daily, it produces approximately 13.2 million barrels per day.

Canada, a founding member of NATO with a population exceeding 40 million, also serves as the leading export market for 36 U.S. states. Around $2.7 billion worth of goods and services cross the border each day.

Trump has mentioned that he might reconsider his tariff threats if Canada improves its security management at the Canada-U.S. border, which he and his advisors view as a potential pathway for undocumented migrants.

Trudeau asserted that less than 1% of illegal migrants and fentanyl come into the U.S. from Canada.

Following a meeting in November at Mar-a-Lago, Trump’s private property in Florida, Trudeau declared an uptick in funding for border security, showing his willingness to address Trump’s concerns in hopes of appeasing him regarding the tariff threats.

As Trudeau navigates the challenges posed by Trump’s second term and his party’s poor polling, the struggling Canadian prime minister announced his resignation last Monday. He is set to be replaced on March 9, when his Liberal party will select a new leader.