Donald Trump has issued a warning to Canada: beginning on Jan. 20, 2025, he stated that he may impose a 25 per cent tariff on all products coming from Canada and Mexico. Trump made it clear that the tariff will stay in effect until both countries completely stop the flow of illegal drugs and immigrants across the U.S. borders.
In response, Prime Minister Justin Trudeau and Canadian officials had phone conversations with Trump about the possible negative impact on the Canadian economy, especially concerning oil exports.Â
Trump’s warnings have raised concerns about the economic damage this could bring, as estimates suggest impacts ranging from a 0.5 per cent in GDP to a five per cent decline, depending on the specifics of the tariff plan.
Earlier this year, the federal government took steps to address U.S. concerns by re-establishing a visa requirement for people from Mexico travelling to Canada.
Trump’s threat significantly raises tensions between the two countries. Ontario Premier Doug Ford and others have warned that this could seriously affect jobs and workers in both nations.
Trump has threatened trade issues as negotiation tactics before, so it is uncertain if he will act on it this time.
