Following meetings in Washington, D.C., Foreign Affairs Minister Melanie Joly briefed Canadian first ministers on January 15th, 2025. The update focused on Canada’s ongoing efforts to mitigate the impact of U.S. tariffs. These Washington meetings covered key areas of border security, trade, and investment. Minister Joly’s report aimed to inform the first ministers on the progress made in addressing these crucial bilateral issues.
In response to President-elect Trump’s threatened 25% tariffs on all Canadian goods, Canada is preparing retaliatory tariffs on various American products, including orange juice, toilets, and steel. This response mirrors Canada’s actions in 2018 when similar tariffs were imposed. The proposed Canadian tariffs aim to counter Trump’s economic coercion tactics and his inaccurate claims regarding Canadian resource dependence. High-level Canadian officials have dismissed Trump’s suggestion of Canada becoming the 51st state as a serious negotiating tactic, characterizing it as a distraction from the economic implications of his proposed tariffs.
Amidst strained Canada-U.S. trade relations, China has expressed its willingness to deepen economic ties with Canada. This follows previous trade disruptions, including Chinese import restrictions on Canadian goods in 2019. While China desires increased trade cooperation, it’s contingent upon Canada creating a conducive atmosphere for negotiations. Experts suggest this openness stems from China’s strategic positioning against potential trade conflicts with the U.S. and a desire to diversify trade partnerships.
In response to President-elect Trump’s threat of a 25% tariff on all Canadian goods, Canada is preparing retaliatory tariffs and exploring options to restrict energy exports to the U.S. Ontario Premier Doug Ford explicitly threatened to cut off energy supplies to five U.S. states. A meeting of Canada’s premiers with Prime Minister Trudeau resulted in a commitment to a robust response, including bolstering border security and utilizing various retaliatory measures. The federal government is coordinating with provinces to identify key export products for potential counter-tariffs, and plans to share this strategy with the incoming Trump administration.
John Q. Hosedrinker