Canada’s 13 premiers have met to discuss concerns over President-elect Trump’s threats to impose a 25% tariff on Canadian exports to the United States. The urgency stems from Trump’s assertion that “porous borders” allow illegal migrants to enter the U.S. via Canada, an argument that has raised tensions between the two countries.
During a recent call, Prime Minister Justin Trudeau pushed back, pointing out that Canada’s border crossings are not porous compared to the U.S.-Mexico situation. However, the conversation hasn’t quelled fears, with critics accusing Canada of side-lining Mexico as a bargaining chip amid Trump’s looming tariffs.
Adding to the turmoil, Deputy Prime Minister Chrystia Freeland’s unexpected resignation has thrown Trudeau’s government into a political storm. Freeland, who also served as finance minister, was widely regarded as a crucial player within Trudeau’s cabinet. Since her election in 2013, she has held influential roles, including leading trade negotiations with the EU and the United States. Her departure marks the first significant fracture within Trudeau’s administration and casts doubt on his leadership as pressure mounts.
Freeland’s resignation came just as Canada unveiled a staggering Can$62 billion deficit—Can$22 billion higher than initial projections—attributed to unforeseen expenses. In response, Public Safety Minister Dominic LeBlanc was swiftly appointed as the new finance minister. LeBlanc faces the monumental task of steering Canada’s economy through the current turbulence and spearheading negotiations with Trump’s incoming administration. He has vowed to remain “laser-focused on the challenges” ahead.
Canada’s economic ties to the United States remain critical, with 75% of Canadian exports relying on access to the southern market. Despite Trudeau’s diplomatic efforts, including a recent visit to Trump’s Mar-a-Lago estate in Florida, there’s little indication that the president-elect plans to soften his stance.
As January 21 approaches, Canada finds itself racing against time—facing a precarious economic landscape, internal political fractures, and an increasingly unpredictable U.S. administration.
