23 December 2024

Written by Nia Williams

(Reuters) – Some Canadian prime ministers are urging Ottawa to respond forcefully to the threat of tariffs from new U.S. President Donald Trump, Canada's finance minister said on Wednesday, highlighting critical minerals and minerals as products the United States depends on.

Canadian Prime Minister Justin Trudeau and other cabinet ministers met with provincial premiers to discuss Trump's pledge to impose heavy tariffs on Canadian and Mexican imports after he is sworn in as president in January.

This pledge raised fears of a trade war between the United States and two of its largest trading partners.

“A number of premiers provided strong support for Canada's strong response which included some premiers proactively naming critical minerals and minerals produced by their provinces, which are exported to the United States,” Finance Minister Chrystia Freeland told reporters after the meeting.

Canada's focus now is on communicating with U.S. officials, Freeland said, adding that Canadian business and labor leaders are also reaching out to their American counterparts.

Ontario Premier Doug Ford (NYSE:) said energy exports to the United States may also stop, without providing further details.

Ontario exports electricity to the United States, but produces none of the 4 million barrels per day of oil that Canada ships south of the border.

“We will use every tool in our toolbox, including the power bits we send to them,” Ford told reporters.

Trudeau said Monday that Canada will respond to unfair tariffs, as it did during the last Trump presidency when Ottawa added tariffs on goods including bourbon, Harley-Davidson motorcycles and cherries.

© Reuters. FILE PHOTO: A US and Canadian flag flies at the Canada-US border crossing at the Thousand Islands Bridge in Lansdowne, Ontario, Canada on September 28, 2020. REUTERS/Lars Hagberg/File Photo

Trump said he will continue to implement protectionist trade measures until Canada and Mexico crack down on drugs and immigrants crossing the border into the United States.

Public Safety Minister Dominic LeBlanc said the federal government has also discussed planned border security measures with the premiers, adding that Canada will then share those details with Trump's team once they are finalized.

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