Canada warns of 'biggest trade war with US' over Donald Trump tariff threat: 'We are ready to...'

Canada’s Foreign Minister, Mélanie Joly, has warned that Americans could face a "Trump tariffs tax" if US President-elect Donald Trump follows through on his plan to impose 25% tariffs on Canadian imports. Speaking at a press conference in Washington on Friday, Joly said Canada is prepared to respond forcefully if a trade war begins.

"This would be the biggest trade war between Canada and the US in decades," Joly stated. "We are ready to put maximum pressure," she added, emphasising that the proposed tariffs would have serious consequences for Canadian jobs and the economy.

The tariffs are part of Trump's broader economic strategy, which also targets Mexico, China, and other trading partners. Canada, however, is preparing countermeasures. According to an AFP report, Ottawa is considering retaliatory tariffs on US goods such as steel products, ceramics, glassware, and orange juice.

Outgoing Prime Minister Justin Trudeau voiced strong opposition to Trump’s proposal, warning of widespread economic consequences. "The proposed tariffs would put American jobs at risk, raise prices for American consumers, and harm collective security across the continent," Trudeau said.

Experts predict severe economic impacts if the trade war escalates. A report from Scotiabank suggests Canada’s GDP could shrink by over 5%, unemployment could rise significantly, and inflation could soar.

Joly concluded with a firm message: "We will be strong and unequivocal in our defense of Canada and Canadians."

With Trump set to return to the White House next week, tensions between the two neighbouring nations appear to be escalating.