Trudeau stands firm as Trump pushes tariff utimatum

Canadian Prime Minister Justin Trudeau met with US President-elect Donald Trump on Friday at Mar-a-Lago in Florida, as the two leaders sought to address escalating trade tensions.

The meeting came days after Trump warned he would impose a 25% tariff on imports from Canada and Mexico unless the countries cracked down on illegal drugs, particularly fentanyl, and migration across their borders with the US.

For Canada, the stakes are significant. Over 75% of its exports—valued at $423 billion (€400 billion)—are destined for the US, supporting about two million jobs. Trump’s tariff threat has sent shockwaves through Canada’s economy, with concerns about a potential trade war growing.

Trudeau acknowledged the challenge during the meeting but stood his ground, calling for a measured approach. “We cannot allow threats to dictate our economic future,” he said. “Our focus remains on protecting Canadian jobs and strengthening trade relationships, not undermining them.”

The threat of US tariffs comes at a particularly sensitive time for Trudeau. Rising living costs and a slowing economy have already eroded his popularity. With a general election looming by late 2025, Trudeau’s Liberal Party is trailing the opposition Conservative Party in polls.

In an effort to rally support, Trudeau convened a meeting with the premiers of all 10 Canadian provinces earlier this week. Speaking to reporters after the meeting, he said, “The Canadian economy is deeply integrated with the American one, but we must act as a united front. Divisive rhetoric will not deter us from standing up for our workers.”

While some analysts speculate that Trump’s tariff ultimatum might be a negotiating tactic, Trudeau dismissed the idea. “It is important to understand that Donald Trump, when he makes statements like that, he plans on carrying them out. There’s no question about it,” he reiterated.

Economists warn that heavy tariffs would hurt all parties involved. “The fallout from such a move would be catastrophic, not just for Canada but for the US economy as well,” said Mark Larson, a senior trade analyst.

Despite the risks, Trudeau remains resolute. “Canadians expect their leaders to protect their livelihoods, and that’s exactly what we are doing,” he said, vowing to explore all diplomatic channels to address the issue.

With tensions mounting, Trudeau faces the dual challenge of safeguarding Canada’s economic future while defending his political position in a rapidly shifting landscape.