Trudeau warns Trump against imposing tariffs, says US needs Canadian resources

Shortly after taking office on Monday, US President Donald Trump reiterated his threat to impose a 25 per cent tariff on Canadian and Mexican imports, starting as early as February 1, if the two neighbouring nations did not clamp down on illegal immigration.

In Short

• Trudeau says Canada vital for America's economic growth
• He notes that the US needs Canadian resources to usher in 'golden age'
• Trump plans 25 per cent tariff on Canadian imports from February 1

Canadian Prime Minister Justin Trudeau warned that his government is ready to respond and "everything is on the table" if US President Donald Trump proceeds with his threat to impose a 25 per cent tariff on Canadian imports starting from February 1.

The Canadian leader's warning came a day after Trump reiterated his threat to impose 25 per cent tariffs on imports from Canada and Mexico on February 1, while accusing the two neighbouring nations of failing to stop illegal immigration and narcotics into the US.

"We're thinking in terms of 25 per cent 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 told reporters in the Oval Office on Monday.

In direct response to the remarks, Trudeau said at a press conference on Tuesday that his government has already acted to address Trump's concerns with a more than $1 billion comprehensive border plan.

"But if the President does choose to proceed with tariffs, Canada will respond and everything is on the table... We are prepared for every possible scenario," he said, adding that "this is an important and challenging moment for Canada and for Canadians".

While acknowledging that the new President's approach does bring uncertainty, Trudeau also said that "Canada provides many of the necessary inputs the American economy is going to need in order to grow and boom".

"President Trump said that he wants to usher in a 'golden age' for the United States. (And) that will require more steel, aluminium, critical minerals, reliable and affordable energy and more of everything to run the US economy full steam ahead. Canada has all those resources," Trudeau told reporters on Tuesday, adding that his nation was a "safe, secure and reliable partner in an uncertain world".

Before his return to the White House for a second stint, Trump had already vowed the tariff hikes on Canadian and Mexican imports, and an additional 10 per cent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the US.