President-elect Donald Trump has vowed to implement massive taxes on goods imported from Mexico, China and Canada, in retaliation for illegal immigration, as well as crime and drugs coming across the borders. He posted on Truth Social saying that he would “sign all necessary documents to charge Mexico and Canada a 25 percent tariff on ALL products coming into the United States and its ridiculous Open Borders.” Trump also announced that China will face higher tariffs by 10 percent.
Following Trump’s post, Canadian Prime Minister Justin Trudeau flew to Trump’s residency at Mar-A-Lago to discuss issues such as border security and Canada- US trade. Trump labelled the meeting “productive” as they discussed topics with an emphasis on fentanyl and illegal drug smuggling. Although the Canadians left feeling optimistic about their relationship with America, the idea of tariffs is not off the table. The Canadian ambassador said that Trudeau was successful in persuading Trump that lumping Canada and Mexico together in terms of drugs and immigration is unjust. Mexico’s President Claudia Shaunbaum rejected these claims, saying that “Mexico must be respected, especially by its trading partners.” In previous years, US customs officers seized 43 pounds of fentanyl being smuggled over the Canadian border, in comparison to the 21,000 pounds from the Mexican border. During the meeting, Trump jokingly remarked that he would annex Canada and make Trudeau the governor. This comment has received backlash online, however, Public Safety Minister Dominic Leblanc who joined Trudeau at the dinner, told reporters that “it was, of course, in no way a serious comment.” He added that “there’s a warm, cordial relationship between the two leaders and the president is able to joke like that, we think, is a positive thing.”
Trump’s tariffs would crush the Canadian economy, but would also be detrimental for the US citizens. The US Census Bureau shows that America imported around $435 billion (CDN) of Canadian goods between January and September of 2024. Although importers are responsible for paying tariffs, they will be forced to raise the prices on these products, putting a strain on American consumerism. Canada sends the US several essential goods such as oil and gas, transportation equipment, primary metals and more. The Canadian Chamber of Commerce reported that Canada’s GDP would shrink by 2.6% (around CAD 78 billion), and the average person would lose approximately $1900 annually. Stephen Tapp, the chief economist at the chamber said that the increase in tax could “push Canada’s economy into recession by middle 2025.” He also reported that “It would raise costs for businesses” and “make American production less competitive internationally.”
Trump’s threats have left citizens around the world feeling uneasy about the future, especially with the economic instability of many countries involved, however, others do not believe that these taxes will be imposed. Trump’s inauguration is scheduled for Jan. 20, 2025, giving nations much-needed time to negotiate these tariff claims and strengthen their relationship with the next president of the United States.
Written by Suriya Ramersad
