Canada has no clear plan to confront Trump’s threats

After Donald Trump’s victory in the US elections, Canadian officials began the race to rebuild “Team Canada,” represented by a group of federal and provincial officials and business leaders led by Prime Minister Justin Trudeau, who resisted Trump’s tariffs in 2018. Today, Team Canada faces a problem because it has become… Without a leader.

Trudeau’s resignation and his decision to prevent elections for at least a few months until his party chooses a new leader leave Canada without a plan to confront Trump’s threats to impose 25% tariffs on all goods, or his proposal for the United States to take over its northern neighbor “by economic force.” The united front that Canada presented to Trump in his first term is divided and fragmented.

“We don’t know who speaks for Canada today,” says Goldie Hyder, who heads the Business Council of Canada, a group that represents CEOs of major Canadian companies.

Even before Trudeau announced his resignation last Monday, the longtime prime minister faced criticism that he was not adequately prepared for a trade battle with Trump, but even the weak and unpopular Trudeau was at least a strong opponent of Trump, and now political analysts say the US president-elect has a chance. To impose more restrictions on Canada on trade and other matters, such as military spending.

“This is not ideal,” said former Canadian ambassador to the United States, David McNaughton, who helped renegotiate the North American Free Trade Agreement during Trump’s first term, adding: “Trump is the person who, when he notices weakness, tries to push harder, and it will be “It’s like a test of strength over the next two or three months.”

A day after Trudeau announced his resignation, Trump stressed the importance of the matter during a press conference, where he called on Canada to become the 51st state. “Canada and the United States, that would be a real thing,” Trump said, suggesting that the two countries get rid of “the artificially drawn line.” » Between the two countries to enhance national security, and reduce what he called the United States’ continued support for the Canadian economy. He added: “They must be one country.”

Trudeau responded to Trump last Tuesday by publishing a post on the “X” platform: “There is absolutely no chance that Canada will become part of the United States,” explaining: “Workers and communities in our two countries benefit from being the largest trade and security partners.”

Trudeau said he will remain in office until his Liberal Party names his successor, likely by the end of March. A senior Canadian government official said the outgoing prime minister would use his authority to impose counter-tariffs on the United States if Trump imposes tariffs on Canadian imports, a possibility that appears increasingly likely.

With Trudeau weak, with only 22% support and forced by his party to step down, his words and actions carry no real weight at home and abroad. Any new leader of the Liberal Party would likely face an immediate vote of no confidence, leading to new elections this spring.

“Canada will never be the 51st American state,” Pierre Poilievre, the leader of the right-wing Canadian Conservative Party, wrote on “X” last Tuesday.

Canadian officials quickly rallied when Trump imposed tariffs on Canadian and Mexican steel and aluminum in 2018, and was forced to renegotiate the North American Free Trade Agreement. During those talks, the “Team Canada” approach included Canadian ministers, provincial leaders and business leaders courting lawmakers in Washington to remind them of how integrated the Canadian economy is with the American economy.

According to US Census Bureau data, Canada is the second largest trading partner of the United States after Mexico. From January to November last year, the two countries exchanged nearly $700 billion in goods, and American, Canadian and Mexican supply chains, and automakers in particular, are intertwined, which may be disrupted by new tariffs.

Canadian Auto Parts Manufacturers Association President Flavio Volpe said: “If the Americans do something like this, the first to feel the pain will be America.” He said that the American auto industry does not have the ability to quickly replace Canadian production, and that tariffs on parts would raise the cost of cars for American buyers.

It does not appear that such arguments will convince the president-elect. In a press conference, Trump said that the United States could manage if it was unable to access Canadian supplies, even if it came to oil, gas and timber. About the Wall Street Journal

. With Trudeau weakened, his words and actions carry no real weight at home and abroad.

. Canada is the second largest trading partner of the United States after Mexico, and from January to November 2024 the two countries exchanged $700 billion in goods.