Trump’s tariff plan still unknown to Canadian officials, with inauguration just hours away

With just hours to go until U.S. President-elect Donald Trump returns to the Oval Office, Canadian officials say they don’t yet know whether he will follow through on his ongoing threat of punitive levels of tariffs on Canadian goods.

“We’ve done a very good defense job, but we’re still ready to respond to whatever decision (Trump) makes, assuming they come later,” said Finance Minister Dominic LeBlanc during an interview on Rosemary Barton Live that went on sunday.

Trump has threatened to impose a 25 percent tariff on Canadian goods — a move that experts and lawmakers have warned against. it would be devastating to the Canadian economy.

Canadian officials scrambled to get Trump to withdraw. Prime Minister Justin Trudeau meeting with Trump at the end of November. Ontario has threatened to cut energy exports. Now, Canada has counter-tariff prepared which applied to $37 billion in goods that would be less damaging to the Canadian economy.

When asked if he has any guidance on Trump’s tariff plan, LeBlanc said Canadian officials have spoken with Republican senators and the president-elect’s cabinet secretaries, but the situation is still unclear.

WATCH | Canadian political leaders explain how they are preparing for Trump:

How are Canada’s political leaders preparing for Trump’s inauguration?

CBC chief political correspondent Rosemary Barton talks with finance minister Dominic LeBlanc about how Canada is preparing for potential tariffs from the United States. Barton also talks with Ontario Energy Minister Stephen Lecce about his visit to Washington for the presidential inauguration, and Ontario’s response to US President-elect Donald Trump’s tariff threat .

“Either they don’t know, or they’re not telling us or (President-elect) Trump hasn’t made those final decisions,” LeBlanc told host Rosemary Barton.

If it becomes necessary, LeBlanc said Canada’s initial plan is to have a “very short” consultation period on a first round of countermeasures in response to whatever Trump may do and then consider escalation.

“Our goal is not to learn how to live with potential fees,” LeBlanc said. The goal, in his words, is to have “temporary measures to get us, hopefully, on the other side of these (US) tariffs.”

Wilbur Ross, who served as commerce secretary during Trump’s first administration, said he doesn’t think the president-elect will take office on Monday and automatically slap tariffs on Canada.

Ross also said that “it’s good for Canada to make preparations so that we don’t have to scramble around”, although he warned that it is not in Canada’s interest to enter into a “territory war” with the United States since it is so critical to the Canadian economy.

The internal struggle of the Federation

Canada’s efforts to avoid Trump’s tariffs hit a snag on Wednesday after an hours-long meeting in Ottawa between all 13 premiers and the prime minister.

Alberta Premier Danielle Smith posted on social media saying she might do not go with the Canadian plan to take on Trump because federal government officials “continue to publicly and privately discuss the idea of ​​cutting energy supplies to the United States and imposing export tariffs on Alberta’s energy and other products to the United States.”

“Until these threats stop, Alberta will not be able to fully support the federal government’s plan to deal with the threatened tariffs,” he said.

WATCH | Danielle Smith rejects US energy cuts

Alberta’s premier is standing her ground on the tariff threat strategy

As Danielle Smith prepares to attend Donald Trump’s inauguration, her approach to dealing with the threat of 25 percent tariffs on goods coming from Canada has been consistent. She tries to negotiate rather than revenge. The CBC’s Sam Samson has more.

Smith’s comments drew the ire of Ontario Premier Doug Ford, who said “country comes first” and Canada must be united.

Ontario Energy Minister Stephen Lecce said the province understands Smith’s concerns, but “ultimately unity will be our strength.”

“Premier Ford made the case that to maximize the pressure on the United States, to deny (President-elect) Trump the ability to divide and conquer in the federation, we need to be united,” Lecce said in an interview about Rosemary Barton Live.

LeBlanc said the federal government is confident there is a “large consensus” in Canada on how to proceed with Trump’s tariffs, and Ottawa is “sensitive” to Alberta’s concerns.

When asked why Canada can’t get Trump to drop his threats, Lecce said the president-elect has “moved the goalposts,” having previously criticized Canada’s border security, defense spending and the trade imbalance with the United States.

The United States can work with Ontario and Canada to “create an unstoppable energy alliance,” Lecce said, or it can pursue trade with “dictators of the world.”

The energy minister of Ontario also said that he believes that “sober minds will prevail”, and that the United States will recognize the economic value of Canada and understand that the two countries “need each other to drive this growth.”