Canada says it 'will continue to cooperate on averting tariffs', but it is also 'planning on response' if Trump follows through on his February 1 threat

By: Shawn
Top Canadian ministers said Monday that Canada is prepared to react after President Donald Trump suggested he was considering putting a 25% tax on Canada and Mexico on February 1.

Trump has threatened to put broad tariffs on Canada, Mexico, and other trading partners.

Canada's Minister of Foreign Affairs Melanie Joly and Minister of Finance and Intergovernmental Affairs Dominic LeBlanc speak to reporters prior to a meeting during a cabinet retreat at Chateau Montebello in Montebello, Quebec, on January 20, 2025.
Sean Kilpatrick/The Canadian Press via AP

"We're thinking in terms of 25% on Mexico and Canada," Trump said late Monday night in the Oval Office. "I think February 1st."

The timing of such levies remains uncertain. Trump issued an executive order seeking a report coordinated by the Secretary of Commerce by April 1.

Trump pledged in his inaugural address that tariffs would be imposed and that foreign nations would pay the trade penalties, despite the fact that such fees are now paid by American importers and frequently passed on to consumers.

Canadian Foreign Minister Mélanie Joly said that they "will continue to work on preventing tariffs" while also "working on retaliation."

Canadian Finance Minister Dominic LeBlanc said that Trump may be unexpected.

"None of this should be surprising," he joked. "Our country is absolutely ready to respond to any one of these scenarios."

Canadian authorities expressed satisfaction that tariffs were not implemented on Trump's first day in office.

Canada is one of the world's most trade-dependent countries, with 75% of its exports, including autos and components, going to the United States.

36 U.S. states consider Canada their top export destination. Every day, about $3.6 billion in Canadian (US$2.7 billion) products and services pass the border.

Despite Trump's argument that the United States does not require Canada, a quarter of the oil America uses each day comes from there.

"It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost living in the United States, in terms of jobs in the United States and the security of supply chains," said LeBlanc. FA

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