Trump threatened to impose tariffs on products from Canada and Mexico if they don’t stop what he called the flow of drugs and migrants across their borders with the United States. He said on social media last week that he would impose a 25% tax on all products entering the U.S. from Canada and Mexico as one of his first executive orders.
Canadian Public Safety Minister Dominic LeBlanc, whose responsibilities include border security, attended a dinner with Trump and Trudeau at Trump’s Mar-a-Lago club on Friday.
Trudeau requested the meeting in a bid to avoid the tariffs by convincing Trump that the northern border is nothing like the U.S. southern border with Mexico.
“The prime minister of course spoke about the importance of protecting the Canadian economy and Canadian workers from tariffs, but we also discussed with our American friends the negative impact that those tariffs could have on their economy, on affordability in the United States as well,” LeBlanc said in Parliament.
If Trump makes good on his threat to slap 25% tariffs on everything imported from Mexico and Canada, the price increases that could follow will collide with his campaign promise to give American families a break from inflation.
Economists say companies would have little choice but to pass along the added costs, dramatically raising prices for food, clothing, automobiles, alcohol and other goods.
The Produce Distributors Association, a Washington trade group, said last week that tariffs will raise prices for fresh fruit and vegetables and hurt U.S. farmers when the countries retaliate.
Canada is already examining possible retaliatory tariffs on certain items from the U.S. should Trump follow through on the threat.
After his dinner with Trump, Trudeau returned home without assurances the president-elect will back away from threatened tariffs on all products from the major American trading partner. Trump called the talks “productive” but signaled no retreat from a pledge that Canada says unfairly lumps it in with Mexico over the flow of drugs and migrants into the United States.
“The idea that we came back empty handed is completely false,” LeBlanc said. “We had a very productive discussion with Mr. Trump and his future Cabinet secretaries. … The commitment from Mr. Trump to continue to work with us was far from empty handed.”
Joining Trump and Trudeau at dinner were Howard Lutnick, Trump’s nominee for commerce secretary, North Dakota Gov. Doug Burgum, Trump’s pick to lead the Interior Department, and Mike Waltz, Trump’s choice to be his national security adviser.
Canada’s ambassador to the U.S., Kirsten Hillman, told The Associated Press on Sunday that “the message that our border is so vastly different than the Mexican border was really understood.” Hillman, who sat at an adjacent table to Trudeau and Trump, said Canada is not the problem when it comes to drugs and migrants.
On Monday, Mexico’s president rejected those comments.
“Mexico must be respected, especially by its trading partners,” President Claudia Sheinbaum said. She said Canada had its own problems with fentanyl consumption and “could only wish they had the cultural riches Mexico has.”
Flows of migrants and seizures of drugs at the two countries’ border are vastly different. U.S. customs agents seized 43 pounds of fentanyl at the Canadian border during the last fiscal year, compared with 21,100 pounds at the Mexican border.
Most of the fentanyl reaching the U.S. — where it causes about 70,000 overdose deaths annually — is made by Mexican drug cartels using precursor chemicals smuggled from Asia.
On immigration, the U.S. Border Patrol reported 1.53 million encounters with migrants at the southwest border with Mexico between October 2023 and September 2024. That compares to 23,721 encounters at the Canadian border during that time.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security.
