President-elect Trump sheds light on his plans on November 25, 2024, to impose 25% tariffs on Canada and Mexico goods. These tariffs start from the date of January 20,2025 till the day unless these nations take steps to prevent illegal immigration and drug trafficking. After this announcement, Prime Minister Trudeau quickly gave a response. He met with provincial leaders and teammates from Trump administration. Additionally due to tariffs threat, Deputy Prime Minister Chrystia Freeland resigned on December 16,2024. According to him, Canada should be ready for a trade war with the United States.
As the next year approaches. It is still not clear that Canada will follow Trump’s full tariffs policy or smaller tariff will be applied. Trump’s real goal is to force Canada and Mexico to follow his priorities. This highlights that tariffs are only the strategy that Trump used to test other nations rather than for other economic reasons. He just wanted to become dominant and control international relations efficiently.
Trump’s new plan to impose tariffs makes United States and Canada relations more uncertain. However, no one knows what will happen in the future. It seems like that threat of tariffs will continue as Trump remains in power. Donald Trump’s statement about tariffs highlights his intentions about how serious this approach can be.
Canada may request to the US about giving a relaxation on tariffs but it seems like that Donald Trump will never change his stance. However, it is hard to gain favor because of falling short of Canada’s defense spending. Due to good relations with US officials, Canada may get little support. But this assistance will not be enough in an “America First” era.
It is important for Canada to align with US interests in order to reduce tariff threats. It includes enhancing border security. Furthermore, Canada can collaborate with American businesses and leaders to show that high tariffs will also hurt US businesses and workers. With this effort Canada may get successful in its mission of lessening the impact of US tariff policies.
Since parts from both nations are frequently integrated to generate finished goods, the integration of US-Canada supply chains is important in a variety of industries. Because of this interconnection, expenses have decreased in both countries, increasing US and Canadian companies’ ability to compete globally.
The United States does not always completely acknowledge this cross-border relationship, though. Despite its enormous influence, Canada’s contribution to the US economy has historically been frequently disregarded. The seamless functioning of these supply chains is typically overlooked since Americans have little immediate incentive to think about the extent of their economic partnership’s benefits. However, the significance of this integration becomes even more evident when these relationships are in danger, and thus it is imperative to emphasize the relevance of this cross-border link.
US industries that depend on Canadian imports for price and stability may be negatively impacted by tariffs on Canadian goods. If Canada retaliates with its own tariffs, US companies that export to Canada would also be affected. Consumers, service providers, and employees may suffer as a result of these developments. Concerns must be communicated to US decision-makers, such as the White House and Congress, by business owners, union leaders, and community leaders. They ought to describe the harm that these tariffs would do to American companies and the economy.
Potential problems like job losses, price increases, and shortages brought on by the tariffs must also be brought to the public’s attention by local media, think tanks, and influencers. The business community and government of Canada will keep contacting US politicians, but Americans’ direct action is what will be most crucial in stopping these tariffs. All states must listen to their concerns in order to halt this detrimental policy and safeguard the economy.
