Trudeau threatens tariff war if Trump moves ahead with duty reforms

Canadian Prime Minister Justin Trudeau has warned the US of the possible consequences if President Donald Trump’s sweeping tariff reforms are applied to its North American neighbour.

It will be American consumers who will pay more in the end, with the outgoing Canadian leader vowing to respond in kind, triggering a tariff war between the two nations.

“We don’t think he wants that.”

Mr Trump told reporters in the Oval Office on Thursday that he still plans to place tariffs on Canada and Mexico at 25% rates starting as soon as February 1.

But, despite the president’s repeated claim that America does not need Canada, nearly a quarter of the oil consumed in the US per day comes from Canada.

America’s northern neighbour also has 34 critical minerals and metals that the US is eager for and is also the largest foreign supplier of steel, aluminium and uranium.

“The US should be working even more with Canada on our energy, on our critical minerals, on the goods they need to deliver the economic growth that Donald Trump has promised,” Mr Trudeau said.

Canada is looking at putting retaliatory tariffs on American orange juice, toilets and some steel products if Mr Trump follows through with his threat, which was initially planned to come into effect on day one of his second term of office.

When Mr Trump imposed higher tariffs during his first term, Canada announced billions of dollars in new duties in 2018 against the US in a tit-for-tat response to new taxes on Canadian steel and aluminium.

“Everything is on the table.” Mr Trudeau said.

“It would be bad for Canada, but it would also be bad for American consumers.”

Nearly 2.7 billion US dollars (£2.2 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 US states.