Canada braces for tariffs, promises relief for businesses and workers

OTTAWA: The Canadian government says it will roll out pandemic-era financial support for workers and businesses if former US President Donald Trump follows through on his threats to impose sweeping tariffs, officials said on Wednesday.

Trump has said he would impose 25 per cent tariffs on imports from Canada and Mexico as early as 1 February unless more action is taken to prevent migrants and illicit drugs from crossing into the United States.

With about 20 per cent of the Canadian economy and almost two million workers in the country reliant on exports to the United States, the tariffs would hit hard.

"Canada will be there to support and protect workers whatever irrational decision is made south of the border," Labour Minister Steven MacKinnon told a press conference.

"Workers will not pay the price for or bear the brunt of a tariff decision made by the US administration," he said.

At his side, MP Randy Boissonnault jumped in to tell reporters to look to Canada’s Covid-19 pandemic response to get a sense of the scale of the proposed bailout, which Canadian media have said could rise to billions of dollars.

"If you want to know what we can do and will do... take a look at (the government’s) Covid playbook. Take a look at how we supported people during Covid," Boissonnault said.

The Canadian government handed out more than Can$280 billion in emergency pandemic benefits to individuals and businesses, pushing the national debt above Can$1 trillion for the first time in 2022.

Foreign Minister Mélanie Joly headed to Washington on Wednesday to meet with her US counterpart Marco Rubio, hoping to convince the Trump administration not to impose tariffs on Canada.

Public Safety Minister David McGuinty, meanwhile, is set to present Trump’s border chief Tom Homan this week with details of Canada’s Can$1.3 billion (US$900 million) plan to strengthen security at the Canada-US border.