Ottawa, provinces prepared to hit U.S. 'where it hurts' over tariffs, Holt says
N.B. premier optimistic Trump's promised 25% tariffs on goods from Canada can be avoided
New Brunswick Premier Susan Holt says she is optimistic the federal government will be able to avoid tariffs of 25 per cent that U.S. president-elect Donald Trump has threatened to impose on goods from Canada, after the premiers met Wednesday with Prime Minister Justin Trudeau.
But if the tariffs go through, Holt says the federal and provincial governments are ready to hit the U.S. "where it hurts, as needed."
"Everything's on the table," including retaliatory tariffs, she said in an interview Wednesday on CBC's Power & Politics.
"We're looking at different ways that we can demonstrate how critically integrated our economies are.
"We're looking at where the influencers are, where those unique points of export are that you could see specific states, specific businesses, economies, jobs and people that might find themselves at risk if their government goes ahead with their tariffs."
Trump has said that when he becomes president on Jan. 20, he will impose tariffs of 25 per cent "on all products" entering the U.S. from Canada and Mexico, unless both countries stop what he called an "invasion" of drugs, "in particular fentanyl, and all Illegal aliens" into the U.S.
Trudeau met with the premiers Wednesday to discuss Ottawa's plan to address Trump's concerns about the Canada-U.S. border.
'Comprehensive' border security plan
According to Holt, Trudeau, Finance Minister Chrystia Freeland and Public Safety Minister Dominic LeBlanc presented a "pretty comprehensive plan" about how they're going to invest $1 billion in border security — and demonstrate that investment to the U.S.
While Holt acknowledged some proposed initiatives, such as training more RCMP and Canada Border Services Agency officers to monitor the border, will take time, she said when governments "want to move fast, we can."
She pointed to the federal government's quick action during the COVID-19 pandemic "when they needed to," and to the affordability measures her own government has taken for New Brunswickers since she was elected 39 days ago.
"Thankfully, I've got neighbours like [Premier] Dennis King in P.E.I., who has an Atlantic Police Academy that's ready to turn things around and produce more people, as needed," she said.
Saint John also has a rapidly growing port that is ready to take on more CBSA staff, "as the containers just keep coming," often into the U.S., she said.
"So I think where there's a will, and where I think there's a unified set of premiers and a federal government that's demonstrated they're going to put a billion dollars of effort into this, we will be able to move some things quite quickly."
Possible N.B. strategies
The assembled federal and provincial politicians also talked about how the tariffs would not only be "devastating" to the Canadian economy, but would also hurt the American economy, Holt said. "And so we're going to continue to make that case" to governors and senators and others.
New Brunswick, for example, exports hundreds of thousands of barrels of refined fuel products to New England every day, Holt said, "and that's critical for their energy security."
There's also a "significant reliance" on New Brunswick forestry products because the U.S. is trying to build homes for Americans, she said. "They need our two-by-fours to do so. And it would have a significant impact to them if those weren't available or were more expensive. "
More than 92 per cent of New Brunswick exports went to the U.S. in 2023, according to the provincial government.
While Ontario Premier Doug Ford, chair of the Council of the Federation, has suggested Trump's tariffs are "100 per cent" coming, Holt said she "would love to have [his] crystal ball," but remains an optimist.
She believes there's still an opportunity to demonstrate to the Trump administration that Canada has a "strong and secure border and that we're a great ally, and U.S. and Canada trade relations should continue."
With files from Power & Politics