The Value Of The US Import Tariff Is 'Very Stupid', Canadian PM Trudeau: We Will Not Withdraw From The Fight

Canadian Prime Minister Justin Trudeau. (Wikimedia Commons/Prime Minister Justin Trudeau)

JAKARTA - Prime Minister Justin Trudeau said on Tuesday the imposition of import rates on Canadian products was "a very stupid thing to do" saying Ottawa would impose tariffs on imports from the United States, accusing President Donald Trump of destroying Canada's economy.

Speaking hours after President Trump launched a trade war against Mexico and Canada, PM Trudeau announced a direct tariff of 25 percent against US imports worth 30 billion Canadian dollars. "If necessary, Canada will target a rate of 125 billion Canadian dollars again within 21 days," he said.

"There is absolutely no justification or need for this tariff," PM Trudeau told reporters, adding Canada would oppose US actions in the World Trade Organization (WTO) and through the existing US-Mexico-Canada trade agreement.

"The Canadian people have common sense and we are polite, but we will not back down from the fight, not when our country and the welfare of everyone in it are at stake," he said.

President Trump responded by saying Canadian return rates would be met with direct reciprocal rates of the same amount.

President Trump accused Canada of failing to do enough to stem the flow of lethal fentanyl opioids and its precursor chemicals to the US, an argument called PM Trudeau "not at all reasonable, absolutely unjustified, absolutely false."

PM Trudeau's relationship with President Trump, which has never been warm, has deteriorated in recent months after White House Leaders repeatedly spoke of Canada becoming the US's 51st state and mocked PM Trudeau for being the "governor" instead of the prime minister.

President Trump said he was unhappy with the US-Mexico-Canada trilateral trade agreement he signed during his first term. PM Trudeau played down the idea of opening negotiations before a review scheduled for 2026.

"Given he chose to destroy Canada's economy, I don't know if to file negotiations, given the bad faith situation we're facing," said PM Trudeau, who warned Canadians difficult times would come.

Economists say Canada, which sends 75 percent of all exports to the United States, will fall into recession unless the tariff is lifted quickly.

PM Trudeau said Americans would also suffer, given how closely the relations between the two economies refer to the Wall Street Journal editorial at the end of January which said President Trump would launch a "tradition war on history" if he continued at a rate.

"It's not my habit to agree with the Wall Street Journal, but Donald (Trump), they show that even if you're a very smart person, this is a very stupid thing to do," said PM Trudeau, who will step down as prime minister after the ruling Liberal Party elected a new leader on Sunday.

The Canadian government will help by expanding the benefits of employment insurance and providing direct support to businesses, he said.

Finance Minister Dominic LeBlanc told the country's prime minister in a virtual meeting in the future that he would soon announce an initial support package to reduce the impact of US tariffs on Canadian workers, families and businesses, PM Trudeau's office said in a written statement at the meeting.

They also discussed ways to reduce barriers to internal trade and labor mobility in Canada, according to the written statement.

President Trump's unprecedented actions threaten to damage relations between the three trading partners.

PM Trudeau said Canada would also consider non-tariff measures, but did not answer directly when asked if Ottawa would curb crude or potassium exports.

"Our focus must be on withdrawing this tariff as quickly as possible," he said.

The US-Mexico-Canada Agreement, which was formed during President Trump's first term of office and renewing North America's Free Trade Agreement, allows customs-free trade between the three countries. The pact contains provisions on the origin rules for cars and car parts as well as steel-intensive products, among others, and also allows safety-related exemptions.

Canada's two most populous provinces, Quebec and Ontario, are pulling US alcohol from provincial-run liquor store shelves.

Ontario Prime Minister Doug Ford said if the US rate remained valid, the province would also charge an additional 25 percent of electricity exports to New York, Michigan, and Minnesota.

"We need to make sure America feels the impact," he said.