"Canada's response will be forceful": Trudeau warns Trump about tariff threat

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Canadian Prime Minister Justin Trudeau on Tuesday vowed a strong response if Donald Trump slaps 25 percent tariffs on Canadian imports, which the US president signaled could come as early as February.


"Canada will respond and everything is on the table," Trudeau told a news conference, adding that Ottawa's reaction would be "robust and rapid and measured," but also match dollar for dollar the US tariffs.


The prime minister spoke at a cabinet retreat to strategize how to deal with the new Trump administration and address the economic threats coming from its southern neighbor.


Trump has called for a tightening of its borders with Canada and Mexico to stem the flow of migrants and illicit drugs.


Hours after taking his oath of office on Monday, he told reporters the punitive tariffs against the two major US trading partners may be imposed as early as February 1.


"We're thinking in terms of 25 percent on Mexico and Canada, because they're allowing vast numbers of people -- Canada's a very bad abuser also -- vast numbers of people to come in, and fentanyl to come in," he said in the Oval Office as he signed an array of executive orders.


Trump also signed an order Monday directing agencies to study a host of trade issues including deficits, unfair practices and currency manipulation.


These could pave the way for further duties.


Approximately 75 percent of Canadian exports go to the United States, led by its energy and auto sectors.


A Canadian government source told AFP that Ottawa is considering higher duties on goods from the United States including steel products, ceramics like toilets and sinks, glassware and orange juice -- in a first phase of tariffs that could be extended.


Trudeau on Tuesday warned that a trade war would cost the United States, but also "there will be costs for Canadians."


One scenario from Scotiabank suggests that it could slash more than five percent from Canadian GDP, increase unemployment significantly and fuel inflation.
(This story has not been edited by News Agency staff and is auto-generated from a syndicated feed.)