Province prepared to face Trump’s tariffs, Ontario’s trade minister says

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Returning from U.S. President Donald Trump’s inauguration Monday, Ontario cabinet minister Vic Fedeli says the provincial government is ready to face tariffs, should they be implemented.

Fedeli, the Minister of Economic Development, Job Creation and Trade, attended the inauguration as part of an Ontario delegation, which included Energy Minister Stephen Lecce.

They were in the U.S. capital to promote the province’s strategy and allyship to American lawmakers.

Following his inauguration, Trump told reporters he may implement 25 per cent tariffs on all Canadian goods on Feb. 1.

Trump delivered the deadline Monday evening at the White House while signing a large stack of unrelated executive orders.

He has floated his tariff proposal as a way to have his border concerns addressed.

“We are thinking in terms of 25 per cent on Mexico and Canada because they are allowing a vast number of people -- Canada is a very bad abuser also -- vast numbers of people to come in and fentanyl to come in,” Trump said.

Fedeli told CTV News that the Ford government “remains focused on avoiding U.S. tariffs.”

“Ontario is prepared to use every tool at our disposal to respond.”

Premier Doug Ford has said tariffs could cost up to 500,000 Ontario jobs. Ford has directed the LCBO to “clear off every bit of U.S. alcohol off the shelves” if Trump makes good on his tariff threat.

“They will feel the pain. I will make sure I communicate this to our other premiers that they should be following suit,” Ford said.

Trump has insisted for weeks that Washington is subsidizing Canada at an annual rate of $100 billion.

The tariff threat has sparked concerns about the impact it would have on the economy, jobs, inflation and supply chains.

“We will continue to be relentless in our advocacy for Ontario’s businesses and workers, as we continue to remind the U.S. that when we work together, both of our economies succeed and good-paying jobs get created on both sides of the border,” Fedeli said.

Prime Minister Justin Trudeau is reframing one of his government’s arguments against trade action, reminding the new administration that it needs Canada to usher in the “golden age of America” pledge Trump made during his inauguration speech.

“President Trump said that he wants to usher in a golden age for the United States,” Trudeau said.

“That will require more steel and aluminum, more critical minerals, more reliable and affordable energy, more of everything to run the U.S. economy full steam ahead.”

Canada has a three-round retaliation planned, according to a senior government source, which would start by singling out a small list of American-made consumer products such as Kentucky bourbon and Florida orange juice.

That would be followed by tariffs on a longer list of U.S. goods worth $37 billion, and then if needed, Canada would hit an additional $110 billion in manufacturing and other products with trade action.

Trudeau said his retaliation plan would include dollar-for-dollar countermeasures while noting the inevitable cost to consumers on both sides of the border.

“Everything is on the table,” he said.