Canada threatens to respond to Trump's unfair tariffs

Canada threatens to respond to Trump's unfair tariffs

Canadian Prime Minister Justin Trudeau has announced that his country will respond “robustly” if US President Donald Trump actually imposes tariffs on Canada. In a press conference he declared: “Everything is on the table.”

Trudeau talks about possible tariff increases

"If there are unfair tariffs, we will respond forcefully and stand ready to support Canadians and protect our interests," Trudeau said in French in response to a question from a journalist.

Trump plans punitive tariffs

Trump said during a signing ceremony in the Oval Office on Monday evening that his administration would... 25% tax on goods from Canada and Mexico, possibly as early as February 1 - a move that could raise prices for American consumers.

Relationship with USMCA and security issues

Trudeau also spoke about Trump's executive action, signed Monday, directing authorities to analyze how the U.S.-Mexico-Canada Agreement (USMCA) affects American workers and businesses - and whether the U.S. should remain in the free trade agreement. His measure requires authorities to assess whether tougher U.S. trade policies could successfully restrict the flow of fentanyl and illegal migrants into the United States.

Canada's Role in Border Security

“While less than 1% of fentanyl and illegal immigrants entering the United States come from Canada, our government has already acted to address the border security concerns raised by the President with a comprehensive Border Plan worth over $1 billion,” Trudeau said. “We are already working together to protect our citizens on both sides of the border.”

The economic importance of Canada

"Canadian energy powers American manufacturing, businesses and households. Of America's top five trading partners, Canada is the only partner to have a manufacturing trade surplus with the United States, and Canada buys more American goods than China, Japan and Germany combined," he added.

Trudeau points to alternative energy sources

Trudeau noted that Trump's alleged "golden age" of the U.S. requires more raw materials such as steel, aluminum, minerals and reliable and affordable energy. “Canada has all of these resources and we stand ready to work with the United States to create a prosperous and secure North American economy,” Trudeau continued.

The potential impact of tariffs on consumers

"The alternative for them would be more resources from Russia, China or Venezuela. Canada is a safe, stable and reliable partner in an uncertain world," he added.

If the tariffs are actually implemented, it could put a strain on Americans' wallets, especially since Mexico and Canada are two of the U.S.'s top three trading partners. Together, they accounted for 30% of the value of all goods imported by the U.S. last year, according to official trade data.

While Trump claims foreign exporters are bearing the tariffs, U.S. consumers will also have to bear some of the costs, as retailers are unlikely to be able to fully absorb the additional costs.

CNN's Elisabeth Buchwald, Kayla Tausche, Kevin Liptak and David Goldman contributed to this report.