Legault writes to Americans on tariffs before federal-provincial meeting
Posted January 15, 2025 8:57 am.
Last Updated January 15, 2025 9:37 am.
As provincial and territorial premiers prepare to meet with Justin Trudeau to discuss the incoming Trump administration’s tariff threats, Premier François Legault has written directly to Americans to warn them of the risks of such a policy.
In an open letter published in the American media outlet The Hill, Legault warns that the tariffs threatened by the president-elect could backfire on Americans.
Donald Trump has promised to implement 25 per cent tariffs on all Canadian and Mexican imports to the United States. This is one of several measures he plans to implement on his first day as president through an executive order. He will be sworn in next Monday.
Legault pointed out that Quebec exports aluminum to the United States, as well as supplies for the American military aviation – products that the country will not be able to produce itself in the short and medium term, he says.
So, with tariffs, Americans will end up paying more for these products, according to Legault.
He adds that, according to the government’s calculations, the customs tariffs imposed on Canada and Mexico would reduce the gross domestic product (GDP) of the United States by 1 per cent.
“Canada will not become the 51st state of the union, but our economies are so intertwined that in terms of trade, we already have a customs union,” he argued.
“Instead of opposing each other, let’s continue to build a great North American economic power: it is in our mutual interest.”
Legault published this letter while he is in Ottawa to participate in a meeting between his provincial and territorial counterparts, and the Prime Minister of Canada, Justin Trudeau.
‘A solid, very solid plan’
Federal Finance Minister Dominic LeBlanc met Tuesday with Ontario Premier Doug Ford, who currently chairs the Council of the Federation, to discuss Canada’s response to Trump’s threat.
“I’ve seen the border security plan. It’s phenomenal. As I said to Minister LeBlanc, have Public Safety Minister David McGuinty go down there and start promoting it because it’s a solid, very solid plan,” Ford said.
The day before, Ford criticized the Trudeau government for not sharing details of its plan to strengthen border security.
For his part, LeBlanc noted that the Department of Finance and Canada’s major banks are working to model the potential job losses that would occur if Trump follows through on his threat. However, the minister declined to share that information Tuesday.
“We’re not going to speculate on the different scenarios. Next week, we expect to know the precise details of what these tariffs will mean for the Canadian economy and, of course, we’ll be prepared to respond from a position of strength,” LeBlanc said.
In Ontario, Doug Ford estimated that the tariffs could cause the loss of 500,000 jobs in his province.
Border, then trade deficit
Trump’s rhetoric on tariffs has changed in recent days. While he initially focused on the lack of border surveillance, he is now focusing on the U.S. trade deficit with Canada, which he says amounts to saying the U.S. is “subsidizing” its northern neighbour.
Foreign Affairs Minister Mélanie Joly said last week that the possibility of retaliatory tariffs for those that Trump will implement will be on the agenda at the meeting with provincial and territorial premiers.
Alberta Premier Danielle Smith met with the president-elect at his Mar-a-Lago resort last weekend. She was invited to the event by Canadian businessman and television personality Kevin O’Leary.
Smith urged Canada not to block oil and gas exports to the United States as part of its response to the tariffs, warning that doing so could trigger a “crisis of national unity.”
Asked Tuesday about the possibility of blocking energy exports, Ford and LeBlanc said they wanted to keep all options on the table.
–This report by La Presse Canadienne was translated by CityNews