‘Canada is not the problem, Canada’s part of the solution’: Champagne on U.S. tariff threats

As Canadians brace for U.S. tariffs set to come into force a week from today, Ottawa warns of turbulence ahead despite continued efforts to avoid the levies.

After speaking to business leaders in Montreal, Industry Minister Francois Philippe Champagne said Canada has doubled down on efforts to show the Americans that Canada takes seriously the concerns raised by President Donald Trump around border security.

“Yes, we might have a period of turbulence but I think that this is a wake-up call for the nation to be more ambitious, to build more resiliency, and I think we’re going to come out of that more united, more prosperous, and more confident about the future,” said Champagne.

Ottawa previously implemented a 1.3 billion dollar border security plan – a plan the federal government has been trying to promote in Washington.

“The president had been clear that he was concerned about issues around fentanyl and the border. I think we’ve doubled down on everything that we were already doing and did additional things,” Champagne explained.

“Canada is not the problem. Canada’s part of the solution. If you want a North America, which is more secure, more competitive and more resilient, and that’s the message we’re bringing in Washington. So you said there’ll be more discussion this week. We are engaging every day with our partners. And I hope this message is coming across loud and clear because, you know, to ensure the safety and security of North America, you have to work with Canada.”

However one person not getting the message seems to be President Donald Trump himself, who confirmed on Monday that he will slap 25 per cent tariffs on Canadian imports on March 4.

“I can tell you speaking to the auto sector in Detroit, they saw the first day that the brokers were already asking for a deposit of 25 per cent. So they understand that the threat of tariffs and even obviously the actual imposition of tariffs would have a huge impact on supply chains. And you don’t need to take it from me, but Jim Farley of Ford has been very, very clear in what that would produce immediately which is cost and chaos,” explained Champagne.

“And that’s what we need to avoid at all cost, because our mission is to make North America more secure, more competitive and certainly bring growth in that part of the world. And I think that’s the message we’re bringing to Washington. That’s what we’re gonna keep on doubling down over the next few days.”

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If Trump does make good on his tariff threats, the federal government said Canada will retaliate with counter-tariffs worth up to $155 billion on targeted American goods.

“Our mission is to avoid the tariffs, make sure that we would, you know, seek further suspension if there would be a threat of that. And alternatively to prepare if there were tariffs which are imposed. I think our American friends have seen it last time that we are prepared. We’ll have a robust response,” said Champagne.

“We’ll have a very targeted and strategic response. I can tell you when I was in Washington, the actions that had been taken by premiers, by Quebec, Ontario and other provinces were felt immediately.”