New Brunswick Premier Susan Holt says Canada’s premiers and prime minister have designed a “really strategic retaliation strategy” if U.S. president-elect Donald Trump imposes devastating tariffs on Canada.
Prime Minister Justin Trudeau and the premiers met Wednesday to discuss Canada’s tariff strategy if imposed.
Holt says the strategy would “hit them where it hurts” and “really focus on inflicting targeted pain on the American economy that has a minimal impact on the Canadian economy.”
“So, we’ve chosen very carefully what that retaliatory strategy will look like, and we’ll scale it accordingly depending on what we see the Trump administration produce,” said Holt during an interview with CTV Atlantic’s Todd Battis on Wednesday.
Trump has threatened both Canada and Mexico with sweeping 25 per cent tariffs if they do not stem the movement of migrants and drugs into the United States.
Canada responded by unveiling a $1.3-billion (US$909-million) border security plan, with an emphasis on surveillance, intelligence and technology.
Following Wednesday’s meeting between the country’s leaders, Holt says she feels encouraged.
“Our federal counterparts had really frank discussions, we covered a lot of ground, and we ended up united and on the same page about our shared goal, our singular focus on fighting these tariffs and eliminating them, and our united view on the steps that we’re prepared to take next week should the tariffs be put in place,” Holt said.
“The efforts that we’ve been taking, engaging with governors, senators, congress people and business leaders in the U.S. has generated a lot of allies and a lot of Americans that see what this is going to cost them. So, we’re hopeful that the tariffs won’t come into play, and if they do, that maybe they won’t be as broad-based as described. But we are prepared to act accordingly once we see what President Trump decides to do.”
Holt believes Trudeau’s strategy was a strong one, adding the premiers came on board to support.
However, Alberta Premier Danielle Smith, who attended the meeting virtually and did not take part in the press conference, said in an online post Alberta won’t be able to support Ottawa’s plan unless restrictions on energy exports to the U.S. are off the table.
Holt says, otherwise, the premiers were aligned during the meeting and says they are all on the same page about what next week looks like.
“I can appreciate the concerns that Smith has expressed about what might happen hypothetically down the road, I don’t think we’re there yet, but really, those are questions for Premier Smith,” said Holt.
Nova Scotia Premier Tim Houston says if tariffs are imposed, it could impact thousands of jobs in the province.
“So, it’s a serious issue. It’s something we’re concerned about and as I said, I’ll certainly do everything I can to stand up for Nova Scotia interests in Ottawa and abroad and wherever is necessary,” said Houston.
“It’s all hands on deck. Everybody is doing their part to get the message out as to the impact, not just on Canadian jobs, but on American jobs … It’s the Trump tax and the Trump tax will make products more expensive for American consumers. That’s just what it is. The combined effort is to make sure that Americans understand that.”
Houston says if a tariff is imposed, the initial stage of Canada’s response will be “very swift.”
P.E.I. Premier Dennis King and his team recently returned from a trip to the United States to strengthen economic ties in light of the tariff talks.
“I still remain hopeful and optimistic,” King told CTV News Atlantic’s Todd Battis on Thursday. “This relationship is long standing. It has served us well for generations. We wanted to remind Americans of that. We talked to almost 500 people down there and I haven’t met one who wants a tariff.”
Jamie Gillies, political scientist at New Brunswick’s St. Thomas University, believes the tariffs are coming regardless of what Canada does.
“So, there’s going to be some tariff on some part of the Canadian economy,” he said.
Gillies adds if Trump’s tariffs are 25 per cent on every Canadian export, Canada will have to respond with a large retaliatory tariff on the U.S. on a variety of goods.
“And that’s going to hurt a lot of people. If it’s a more targeted or a series of rolling tariffs in which the Trump administration wants something from Canada in the negotiations, thing like border security or paying up for NATO, that could be what we experience in the first half of 2025,” he said.
Either way, Gillies says Canada has to be prepared for anything.
“We are in a bit of a waiting game but I think behind the scenes, they’ve got to be prepared for all kinds of strategies to deal with what likely is going to be an announcement on Jan. 20,” said Gillies.
“Now, whether these are rolled out immediately or there’s a timeframe here and some things that the United States wants in return, we need to be prepared. So, I don’t think this is going to be something that’s cleared up at the end of January, early February. I think this is something that’s going to be prolonged and protracted negotiations and it could be a while before we see that.”
Trump will take the oath of office and return to the White House in a ceremony on Monday to begin his new term.
With files from CTV Atlantic’s Alana Pickrell.
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