New Delhi. Canadian Prime Minister Justin Trudeau reacted sharply to the statement of US President Donald Trump, saying that Trump is trying to create uncertainty among his trade partners. He is doing this so that other countries can weaken their bargaining position. Let us tell you that Trump indicated on Monday that his government could impose up to 25% duty on Mexico and Canada from February 1.
Trudeau responded to Trump’s comment by saying, “We know that some unexpected rhetoric always comes out of this administration.” Trudeau described Trump as a skilled negotiator and said that he does everything he can to keep his trade partners off balance.
Mexican President Claudia Sheinbaum also supported Trudeau’s views, saying, “It is always important that we think with a cool head and not be distracted by mere rhetoric but give priority to the orders that have been signed.”
Trudeau’s government has made it clear that if Trump imposes tariffs, it will provide support and compensation to Canadian citizens and businesses. Canada has also prepared a list of retaliatory tariffs on US-made textiles, which can be implemented in case Trump imposes sweeping tariffs.
However, this policy of retaliation could prove to be a heavy economic burden for Canada. This could increase costs for consumers and businesses. This could deepen the economic crisis. In 2019, the Bank of Canada estimated that Canada’s gross domestic product (GDP) could fall by 6% if the US imposes a 25% tariff.
Trudeau said on this matter, “We have faced such situations before. Our focus has always been on meaningful issues where both Canada and the US do well together.” The Canadian Chamber of Commerce also expressed caution and said they would take Trump’s comments seriously.
Alberta Premier Daniel Smith disagreed with Trudeau, saying that threatening to block Canadian energy exports to the US or imposing export taxes would be a bad idea. Smith argued that this would raise prices for American consumers and businesses, which would be harmful to both countries.
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