Canadian Prime Minister Rules Out Trump First-Term Retaliatory Tariffs "Like in 2018"

Canadian Prime Minister Justin Trudeau made it clear that he will take retaliatory measures if President-elect Donald Trump, who will be inaugurated next month, imposes a 25% tariff on Canadian products. He also referred to the retaliatory tariffs imposed during Trump's first term in office in 2018, stating that "our response played a decisive role in the removal of (U.S.) tariffs."

Canadian Prime Minister Justin Trudeau is walking and talking with then-President Donald Trump during his visit to the White House in October 2017. Photo by AFP Yonhap News

According to Bloomberg News and others, on the 9th (local time), Prime Minister Trudeau said at an event hosted by the Halifax Chamber of Commerce in Nova Scotia, "We will respond to (U.S.) unfair tariffs in various ways," adding, "We are still exploring appropriate response methods."

Trudeau said that the 25% tariff announced by President-elect Trump would have a destructive impact on the Canadian economy but pointed out that such measures could actually increase inflation within the United States. He also added that there are signs that Americans themselves are beginning to realize this reality. President-elect Trump, who is set to be inaugurated next month, has announced that he will impose a 25% tariff on all products from Mexico and Canada on his first day in office.

In particular, Trudeau also mentioned the tariff war between the two countries during Trump's first term. The Trump administration announced high tariffs on Canadian steel and aluminum products in May 2018, and Trudeau protested, calling it "insulting." Shortly thereafter, Canada imposed large-scale retaliatory tariffs, including politically sensitive items such as bourbon, Harley-Davidson motorcycles, and Heinz ketchup, stating that it would take the "strongest trade measures since the postwar period" until the U.S. measures were canceled.

Trudeau evaluated that Canada's retaliatory tariffs at the time "had a significant political impact on the president's party (Republican Party) and his colleagues," adding, "We were able to strike back in a way that Americans could actually feel." Bloomberg News analyzed, "Trudeau claimed that the 2018 retaliatory tariffs were successful," and said, "This statement is the strongest indication that the Canadian government will retaliate if President-elect Trump realizes his tariff threats."

On this day, Trudeau said that while the tariff threats from President-elect Trump should be taken seriously, they might be a negotiation tactic with other objectives in mind. He said, "Trump's approach often challenges people, unsettles negotiation partners, and provides uncertainty and a bit of confusion," emphasizing, "What is important for us is not to be embarrassed or panic."

Earlier, at the end of last month, shortly after President-elect Trump announced the 25% tariff, Trudeau visited Florida in the United States and met with Trump directly. Conservative-leaning Fox News reported that at this meeting, President-elect Trump expressed complaints about illegal immigration, drugs, and trade deficits, and said, "If you can't meet these demands, become the 51st state of the United States." The two had also clashed over trade issues, including tariffs, during Trump's first administration. According to the U.S. Trade Representative (USTR), the trade volume between the two countries approaches $1 trillion.