Cana US TRADE WAR: Justin Trudeau Canada, raging on Donald Trump’s tariff, will these four options with America trade war

Agency:News18hi

Last Updated:February 02, 2025, 10:44 IST

US Canada Tarrif: America imposed 25 percent tariffs on Canada and Mexico, which increased the challenges for Canada’s economy and PM Trudeau. Canada in a possible response to tax on American goods, energy supply and …Read more

America put tariffs on Canada. (AP/Reuters)

Washington: US President Donald Trump was threatening to put tariffs on Canada and Mexico. Trump has now proved that he does not just threaten by putting 25 percent tariff on Canada and Mexico. However, Canada’s energy resources will be taxed only 10 percent. The announcement of tariff from Trump is going to create a lot of difficulty for Canada’s economy as well as Trudeau’s political career. Trudeau threatened after Trump’s announcement, saying, “We did not want this, but if America moves forward, we will also take steps.”

According to the BBC report, economists have said that the move can have a disastrous effect on Canada’s economy, as well as American consumers may have to pay expensive prices. Trudeau said in his television address, ‘I will not call this situation easy. Our country may have to go through a difficult time in the coming days and weeks. Canada wants to completely avoid trade war with America. This is the reason that it has planned to spend more than $ 690 million on the border with the US. However, Trudeau has said that all options are open.

What can Canada do?

• Tax on American equities: In the previous term of Canada Trump, tariff war has fought with America. In 2018, Trump imposed 10 tariffs on Canada’s aluminum and 25 per cent on steel. In response, Canada also put a tariff on the orange juice of Florida, Tennessi and Kentki’s whiskey. This time too, Canada can tax selected American goods. It is considered a safe way.
• Dollar-for-Dollar Tariff: Canada last imposed a dollar-for-dollar tariff on American products. That is, the more dollars America had imposed tariffs on Canada’s exports, the more Canada applied on American equities. However, the entire Canada does not agree with this. Scott Mo, leader of Suskechewan state, has said that increasing the tariff on American goods will break the country. Julian KaraguSian, a lecturer of economics at McGill University at Montreal, says such tariffs may increase inflation and unemployment in Canada.
• Ban on energy supply: Canada has the best option energy to fight America. North-Eastern American states such as Vermont, New York and Mains depend on the electricity sold from Canada. 30 states of America buy some power from Canada. Canada is the largest supplier of crude oil to America. 60 percent of crude oil in America comes from Canada. Ontario chief Doug Ford suggested that Canada should stop the supply of US energy. This controversial step can harm Canada to America. However, Canadian oil -rich Alberta province has refused to stop the energy supply.
• No response: Doug Ford also suggested that American liquor should be removed from some provinces shops in Canada. At the same time, there is another option that Canada should not take any action for the moment. Canadian officials are constantly meeting with American counterparts. On Wednesday, Canadian Foreign Minister Malani Jolie met American counterpart Marco Rubio and gave a message that the tariff will not be good for both countries. Many experts suggest that Canada should focus on diversifying its business relations and increasing domestic production.