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Prime Minister Justin Trudeau dined with Donald Trump on Friday, after the US president-elect threatened to hit Canadian imports with steep tariffs on the primary day of his presidency.
The assembly at Trump’s Mar-a-Lago resort in Florida made Trudeau the primary G7 world chief to go to Trump since his victory within the US presidential election this month. It adopted cellphone calls between the 2 because the Canadian prime minister makes an attempt to avert a North American commerce struggle.
Trump’s appointee for commerce secretary, Howard Lutnick, who could have a significant position in overseeing commerce, his candidate for nationwide safety adviser Mike Waltz, and his decide for inside secretary Doug Burgum additionally attended the occasion, in line with individuals conversant in matter.
The Canadian delegation, which included Trudeau’s chief of employees Katie Telford and Canada’s public security minister Dominic LeBlanc, didn’t keep at Trump’s Mar-a-Lago resort, however at a distinct resort in Palm Seaside.
The Trump transition workforce didn’t reply to requests for remark. On his Reality Social community, Trump posted that he had an “attention-grabbing particular visitor” at his desk.
With an attention-grabbing particular visitor on the Trump head desk at Mar-A-Lago pic.twitter.com/SxzYp8ZrR0
— Donald J. Trump Posts From His Reality Social (@TrumpDailyPosts) November 30, 2024
Earlier within the week, Trump threatened to impose a 25 per cent tax on all items imported from Canada and Mexico except each international locations cease what he calls an “invasion” of medication into the US, “particularly Fentanyl”, and “all Unlawful Aliens”.
On Wednesday, Canada’s authorities mentioned it might bolster its border safety after Trudeau met Canada’s provincial leaders to agree a united response to Trump’s threats.
The US-Canada border is the longest on this planet, stretching almost 9,000km throughout land and water. Safety on land is gentle, there are few partitions or fences and in locations it’s marked by easy stone markers alongside residential streets.
Blanket 25 per cent tariffs would push Canada right into a recession in 2025, trigger a pointy spike in inflation and pressure the Financial institution of Canada to maintain charges increased subsequent 12 months, in line with Tony Stillo, director of economics at Oxford Economics.
“Canada’s vitality, auto, and different heavy manufacturing sectors could be hardest hit by the blanket US tariffs due to the excessive diploma of cross-border commerce in these industries. These sectors rely closely on exports to the US, but additionally supply a sizeable share of their inputs from the US, making them extremely uncovered to tariffs,” he mentioned.
Canada does have leverage within the $1.3tn-a-year buying and selling relationship, particularly via its vitality sector. Canada gives 60 per cent of US crude oil imports.
Lisa Baiton, head of the Canadian Affiliation of Petroleum Producers, mentioned: “A 25 per cent tariff on oil and pure fuel would seemingly lead to decrease manufacturing in Canada and better gasoline and vitality prices to American shoppers.”
It’s not the primary time Trudeau has confronted Trump’s “America First” commerce coverage. In 2017 the then-president insisted on renegotiating the two-decade previous North American Free Commerce Settlement, which he described as a “catastrophe” that, together with China, had hollowed out the US manufacturing sector.
Throughout his earlier time period in workplace Trump additionally chided Trudeau over Canada’s spending on defence, which was under Nato’s 2 per cent goal. Canada is growing its defence price range however Trudeau instructed a Nato summit in July that the goal wouldn’t be reached till 2032.
