MercoPress. South Atlantic News Agency

Canada will retaliate if Trump moves on with tariffs

Joly said Trump was causing “unpredictability and chaos”

Canada's Foreign Minister Mélanie Joly announced Monday that her country was ready for if or when US President Donald Trump decides to move on with the 25% tariffs currently on pause following a telephone understanding with acting Prime Minister Justin Trudeau.

Should it become necessary, Canada is prepared to respond with retaliatory tariffs of 25% on US$ 107 billion worth of US goods, Joly explained. Trudeau resigned his position earlier this year but remains in office until a successor is appointed.

Despite Trump's latest statements regarding the tariffs, Canada has not received any official information, the Foreign Minister also pointed out. “We know this represents an existential threat to us. There are thousands of jobs in Canada that are at risk. We've already done the work, we're ready if the US decides to wage a trade war,” Joly said. “We will be ready,” to meet this “existential threat,” she added-

She also accused Trump of causing unpredictability and chaos and insisted Canada was ready for a trade war if necessary. However, she admitted that “diplomatic efforts continue” to avoid the trade conflict.

As a result of the Trump-Trudeau talks, Canada appointed a new “fentanyl czar” and classified Mexican cartels as terrorist groups, but is still waiting to see what happens.

Trump announced Monday that the 25% tariffs against Mexico and Canada would go into effect on March 4. On Feb. 1, he signed an executive order imposing 25% tariffs against goods imported from Mexico and Canada, with a 10% tariff increase specifically for Canadian energy products. On Feb. 3, Trump announced that the additional tariffs on goods from Mexico and Canada would be delayed for one month to allow more time for negotiations. But on Monday, he said that Mexico and Canada had “no room” for negotiation.

”And if President Trump goes ahead with tariffs on Canadian goods, we are ready with response levies of CAN$ 155 billion (US$ 107 million), of which a first tranche of $30 billion is already in place,“ she explained.

”We are ready if the US decides to launch its trade war. It is not something we are interested in,“ she also mentioned.

In this scenario, Canadian Natural Resources Minister Jonathan Wilkinson reckoned that his country and the United States would no longer be trading partners as before even if the tariffs are removed.”I don't think we will go back to what we were even if the tariffs are removed,” Wilkinson said.

Trump has long argued that tariffs are a useful tool to correct trade imbalances and protect US industry and dismissed concerns that they could cause economic damage.