Canadian politicians and businessmen were shocked by US President-elect Donald Trump's promise to introduce trade tariffs of 25%, writes newspaper The Wall Street Journal.
Canadian political and business elites consider duty-free access to the US market necessary for the country's economic growth, as roughly three-quarters of all Canadian imports come from the US. Economists warn that 25 percent tariffs will push the Canadian economy into recession.
The threat of high tariffs was made by Trump at a time when Canadian Prime Minister Justin Trudeau is “trying to save his political career”. The governing Liberal Party led by him is about 20 percentage points behind the opposition Conservative Party of Canada in terms of public support, The Wall Street Journal recalls.
Washington, Mexico City and Ottawa are bound by a trilateral agreement (USMCA), which includes the creation of a free trade area between the countries. Trump has said that on his first day as president, January 20, 2025, he will impose a 25% tariff on all goods from Canada and Mexico in connection with illegal immigration and drug smuggling.
Earlier, Trudeau arrived in Florida, where he met with Trump, his future national security adviser Mike Waltz and North Dakota Governor Douglas Bergum, who was nominated by the US leader-elect for the post of Secretary of the Interior of the United States. The results of their negotiations are not yet known, the newspaper states.