President-elect Donald Trump says tariffs would remain until Canada controls the flow of fentanyl into the U.S.
B.C. Premier David Eby says “Ottawa must respond with strength” to Monday’s threat by U.S. president Donald Trump to impose a 25 per cent tariff on Canadian goods imported into his country.
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In a post on X, Eby said “Canadians must stand united”, and that the proposed tariffs would hurt Canadian and American consumers.
A tariff is a tax imposed on imported goods that makes those goods more expensive for consumers, and so less attractive to buy. This reduces demand for those products, as well as generates tax revenue for the country that imposes the tariff. This can lead to increased prices for goods, that in turn can lead to inflation and could reduce the chance of continuing interest rate cuts in the U.S. and Canada.
Trump made his statement on his social media channel Truth Social, and said the tariff was a way to try to force the Canadian government to work harder on reducing the flow of the drug fentanyl into the U.S.
He made the same threat to Mexico, saying the 25 per cent tariff would be imposed until that country works harder to reduce the flow of illegal immigrants and fentanyl into the U.S.
Over the past decade the highly concentrated drug fentanyl has wreaked havoc in Canada, and in particular B.C. where at least 1,800 people have died from fentanyl overdose so far this year. In 2023 in B.C. 2,511 died from ingesting the drug, which is usually cut into other drugs like cocaine and heroin.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” Trump wrote. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
The Canadian dollar fell to a four-year low on the news, while the peso traded close to its weakest since 2022. China’s yuan edged lower offshore, after Trump said he would raise tariffs on Chinese imports by 10 per cent.
Softwood lumber and energy products are the main items by dollar value exported to the U.S. from B.C.
According to Bloomberg News, representatives for Canadian finance minister Chrystia Freeland and the Mexican foreign affairs and economy ministry didn’t immediately respond to requests to comment. Spokespeople for Trump didn’t immediately answer a question about whether there would be exemptions from the duties.
Ontario Premier Doug Ford said the proposed tariffs would be “devastating to workers and jobs in both Canada and the U.S.
“The federal government needs to take the situation at the border seriously. We need a Team Canada approach and response and we need it now,” Ford wrote on X.
“Prime Minister Trudeau must call and urgent meeting with all premiers.”
U.S. data released earlier this month by the Centres for Disease Control and Prevention showed a 14 per cent drop in drug overdose deaths from June 2023 to June 2024.