Under trade war and economic threats, Trudeau and Ford push back

By Ken Kellar
Editor
kkellar@fortfrances.com

In the wake of punishing tariffs imposed by the United States Government and U.S. President Donald Trump, Canada and Ontario are pushing back.

Canadian Prime Minister Justin Trudeau and Ontario premier Doug Ford held back to back press conferences yesterday, Tuesday, March 4, 2025, following the imposition of the U.S.’s 25 percent tariffs on Canadian goods. President Trump had threatened the tariffs earlier this year, but Canada had managed to secure a delay in their implementation by, in part, agreeing to strengthen border security to curb the flow of illegal fentanyl across the border into the southern country. While Canadians were hoping that another extension, or removal of the tariffs entirely, could have been on the table, Trump announced they would be going ahead on Monday, March 3, 2025,

During yesterday’s address to media, Canadians and beyond, Trudeau announced that Canada would be implementing a retaliatory 25 percent tariff against $155-billion worth of U.S. goods coming into Canada, beginning with tariffs on $30-billion worth of goods immediately and bringing tariffs on the remaining $125-billion in three weeks time. The prime minister also announced other actions to try to combat what he called “illegal actions” as well as “a very dumb thing to do.”

“We will also be challenging these illegal actions by filing dispute resolution claims at the World Trade Organization and through the USMCA (United States-Mexico-Canada Agreement),” Trudeau said.

“But in the meantime, our tariffs will remain in place until the U.S. tariffs are withdrawn, and not a moment sooner. And should these tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures, measures which will demonstrate that there are no winners in a trade war.”

Trudeau spoke directly to U.S. citizens, noting the Canadian government does not want to work against them, but is responding directly to damaging actions their government has taken.

“Your government has chosen to do this to you,” he said.

“As of this morning, markets are down and inflation is set to rise dramatically all across your country. Your government has chosen to put American jobs at risk at the thousands of workplaces that succeed because of materials from Canada, or because of consumers in Canada, or both. They have chosen to raise costs for American consumers on everyday essential items like groceries and gas, on major purchases like cars and homes and everything in between. They have chosen to harm American national security, impeding access to the abundant critical minerals, energy, building materials and fertilizers that we have and that the United States needs to grow and prosper. They’ve chosen to launch a trade war that will, first and foremost, harm American families.”

Trudeau also pushed back against the U.S. Government’s continuing claims of illegal fentanyl crossing the border into the southern nation from Canada, arguing that new data from U.S. Customs and Border Protection shows a 97 percent drop in fentanyl seizures from December 2024 to January 2025, with less than half an ounce seized in January. In response to a question from a reporter onsite, Trudeau said that in light of the tariffs even after agreeing to the U.S. Government’s demands to step up border security against the drug, it has become clear there was nothing Canada could do to avoid them, and that the drug has become “legal justification” to impose the tariffs regardless.

“The facts show very clearly that in terms of taking action on fentanyl, we are doing everything that is necessary, and not just for the United States, for ourselves as well, as Canadians are suffering as well from the scourge that is illegal fentanyl,” Trudeau said.

“We have laid out extensive plans, actions, cooperations, including as recently as the past days in Washington, and they have always been very well received, and the numbers bear that out. I think in what President Trump said yesterday, that there is nothing Canada or Mexico can do to avoid these tariffs, underlines very clearly what I think a lot of us have suspected for a long time; that these tariffs are not specifically about fentanyl, even though that is the legal justification he must use to actually move forward with these tariffs.”

In a follow-up question, Trudeau said that in light of the disparity of the fentanyl issue, as well as other allegations Trump has made against Canada, there’s only one line of reasoning for his actions that has remained consistent.

“We actually have to fall back on the one thing he has said repeatedly, that what he wants is to see a total collapse of the Canadian economy, because that will make it easier to annex us, is the second half of his thought,” Trudeau said.

“Now, first of all, that’s never going to happen. We will never be the 51st state, but yeah, he can do damage to the Canadian economy, and he’s started this morning, but he is rapidly going to find out, as American families are going to find out, that that’s going to hurt people on both sides of the border.”

In addition to imposing tariffs against the United States, Trudeau said the Canadian government would be working in the coming days to strengthen economic ties with Mexico and its European trade partners, as well as to build up other supports for Canadians who will feel the impact of the U.S tariffs.

“I won’t sugar coat it; this is going to be tough, even though we’re all going to pull together, because that’s what we do,” Trudeau said.

“We will use every tool at our disposal so Canadian workers and businesses can weather this storm, from expanding E.I. benefits and making them more flexible to providing direct supports to businesses, we will be there as needed to help but Canada, make no mistake, no matter how long this lasts, no matter what the cost the federal government and other orders of government will be there for you. We will defend Canadian jobs. We will take measures to prevent predatory behaviour that threatens Canadian companies because of the impacts of this trade war, leaving them open to takeovers. We will relentlessly fight to protect our economy. We will stand up for Canadians every single second of every single day, because this country is worth fighting for.”

Ontario premier Doug Ford also announced a number of counter-measures in response to the U.S. tariffs yesterday, including the removal of U.S. alcohol from the Liquor Control Board of Ontario (LCBO) shelves across the province.

“To support the federal government’s efforts, Ontario will also launch its first round of retaliation,” Ford said.

“Starting today, LCBO, the largest purchaser of alcohol in the world, will begin removing U.S. products from its store shelves, and as the exclusive wholesaler, American brands will no longer be available in LCBO catalog, meaning other retailers, bars and restaurants in the province will no longer be able to restock U.S. products.”

Ford said the LCBO is responsible for nearly $1-billion in sales of U.S. alcoholic products each year, making the move an “enormous hit” to U.S. producers. In addition, Ford said the provincial government will immediately ban U.S.-based companies from taking part in government procurement policies. While U.S. companies are not necessarily receiving all of the money set aside for these projects, Ford noted the province spends roughly $30-billion on procurement annually, alongside its $200-billion plan to build out infrastructure in Ontario.

“U.S.-based businesses will now lose out on tens of billions of dollars in revenues; they only have President Trump to blame,” Ford said.

“I’m also urging all 444 municipalities to do the same, and I’m thrilled to see some are already stepping up, for example, mayor Patrick Brown in the city of Brampton and many other cities. As part of this government-wide procurement ban, we’re going one step further. We’re ripping up Ontario’s contract with Starlink. It’s done. It’s gone. We won’t award contracts to people who enable and encourage economic attacks on our province and our country. Alongside federal tariffs and the measures my fellow premiers are bringing forward this is Team Canada’s opening response.”

Ford also said the government is ready and willing to consider further punitive measures against the tariffs, including surcharges or “outright restrictions” on critical minerals and electricity the province supplies to the United States. Ford announced he was going to be writing the senators and congress representatives of New York state, Michigan and Minnesota to warn them that, should the tariffs against Canada remain, he would implement a 25 percent surcharge on electricity exports, and that the government “will not hesitate to shut off their power as well.” The premier also touted the internal measures that he would work towards in order to help shore up Ontario’s economy in the face of the tariffs.

“Friends, I know you’re worried, you’re concerned about the future,” Ford said.

“I want you to know I will fight like I’ve never fought before. I will do whatever it takes to protect you, your families and your communities. We are watching the real world impacts of these tariffs, and we will be there for you. We will spare no expense to protect Ontario workers. We’ll re-train impacted workers for new jobs. We’ll retool companies for new customers and new markets. We’ll restore supply chains to bring good jobs back home, and we’ll rebuild roads, highways, bridges to keep people working. Led by my friend, Premier Tim Houston, we’re breaking down costly internal trade barriers, and we need to cut the red tape to end the delays that are blocking projects with enormous economic potential.”

“We want to work with our American friends and allies, not against them,” Ford continued.

“We said would never start a trade and tariff war with the U.S., but you better believe we’re ready to win one.”

The Fort Frances Times will continue to cover this issue as it evolves.