President-elect Donald Trump has announced plans to impose a 25% tariff on all imports from Canada and Mexico upon taking office. This move aims to pressure both countries to address issues related to illegal immigration and drug trafficking into the United States.

Ontario Premier Doug Ford has expressed significant concern over this proposed tariff, stating that it would be "devastating to workers and jobs" in both the U.S. and Canada. He emphasized the need for a cooperative approach to border security, urging the federal government to take the situation seriously and adopt a "Team Canada" response.

Did you know?

Canada and the U.S. share the largest bilateral trade relationship in the world, with daily trade exceeding $2 billion in goods and services. This interconnected economy means any significant disruption, such as a tariff hike, can ripple through industries ranging from automotive to agriculture.

For example, roughly 75% of Canadian exports go to the U.S., and American manufacturers rely heavily on Canadian aluminum and steel, highlighting how deeply integrated their supply chains are. This economic interdependence makes trade disputes particularly impactful on both sides of the border.

This is why, similar tariffs have historically led to strained trade relations. For instance, in 2018, the Trump administration imposed tariffs on Canadian steel and aluminum, prompting Canada to implement retaliatory tariffs on U.S. goods. These measures were eventually lifted after negotiations, but not without causing economic disruptions.