Liberal leadership front-runners promise dollar-for-dollar tariff retaliation of historic proportions
Carney and Freeland both pitching themselves as the right leader to take on Trump
As U.S. President Donald Trump toys with slapping massive tariffs on Canadian goods next week, the front-runners vying to replace Prime Minister Justin Trudeau are both vowing to respond with dollar-for-dollar retaliation.
In a statement following Trump's inauguration, former central banker Mark Carney, who officially entered the Liberal leadership race last week, said if the president follows through it would "demand the most serious trade response in our history."
"Dollar-for-dollar retaliatory tariffs by Canada should be a given and they should be aimed where their impacts in the United States will be felt the hardest," said the former Bank of Canada governor in a statement Monday night.
"Every dollar raised by Canadian tariffs should be used to help support Canadian workers through this fight."
As his first day in office came to a close Monday, Trump suggested he's "thinking" of following through with the massive tariffs he's threatened against Canada and Mexico.
Carney, who's pitching himself to Liberal voters as someone who can help the country weather economic troubles, said the U.S.'s proposed actions speak to the urgency to shore up the Canadian economy.
"This will require dramatic changes to our economic policies, which I am proposing," Carney, who also helmed the Bank of England, wrote.
"Over the medium term, if we can no longer rely on American neighbours, we must diversify our trading relationships and build new sources of jobs and growth based on our immense resources, our talented people and their innovation and industry," he said.
Trudeau says he supports 'principle' of matching
Carney's chief contender, former finance minister Chrystia Freeland, is also promising a punitive response.
Launching her campaign Sunday, Freeland promised to "lead a true Canadian response to the threat we now face," including dollar-for-dollar retaliation.
"If you hit us, we'll hit back," she said. "If you force our hand, we'll inflict the biggest trade blow that the United States has ever endured."
Freeland helped lead Canada's negotiating team during Trump's first term in office, when the North American Free Trade Agreement was in jeopardy, and is pitching herself as a seasoned leader to take on his second administration.
After her December resignation from cabinet, Trump took to social media to call Freeland "toxic" and said she "will not be missed."
Freeland argued Trump not liking her is a good thing.
"He prefers pushovers," she told reporters Sunday. "You want someone as leader of the Liberal Party as prime minister who Donald Trump is afraid of."
Trudeau said Tuesday Canada will hit back at the U.S. if Trump goes ahead with punishing tariffs on Feb. 1.
"Everything is on the table and I support the principle of dollar-for-dollar matching tariffs," Trudeau said. "It's something we're absolutely going to be looking at if they move forward. We are prepared for every possible scenario."
Officials have already drawn up a plan that will levy immediate tariffs on $37 billion worth of American goods if Trump moves against Canada — rising to $110 billion if the president doesn't back down.
Freeland takes aim at Trudeau
Freeland has been attempting to distance herself from her former boss as she campaigns for his job. She was widely seen as a key Trudeau ally until her shock resignation in December.
She now says she and the prime minister had been in disagreement over the government's handling of the economy "for some time," which worsened following Trump's re-election in November.
Her departure as finance minister came after Trudeau told her he planned to replace her with Carney after she had delivered the fall economic statement in the House of Commons.
When asked during an interview with CP24 on Monday what she would do differently as prime minister, Freeland said she would have handled the situation differently.
"I wouldn't tell my finance minister I was going to fire her the day after she delivered the fall economic statement. I probably wouldn't say that three days before she was supposed to deliver it," she said. "Step one, right?"
Leadership contenders pick up endorsements
The leadership race is hurtling ahead on a tight time frame. Candidates have less than a week to sign up new members. Registered Liberals will vote March 9 across 343 ridings, with each riding weighted at 100 points.
Dozens of Liberal MPs, including cabinet ministers, are planting their support behind either Freeland and Carney.
On Tuesday, Carney picked up support from Crown-Indigenous Relations Minister Gary Aanandasangaree, Nova Scotia MP Sean Fraser and former cabinet minister David Lametti.
Carney picked up a key Quebec endorsement over the weekend, when Foreign Affairs Minister Mélanie Joly pledged support just hours before Freeland took to the stage to launch her bid.
Freeland also has cabinet ministers lining up to support her.
Justice Minister Arif Virani and Health Minister Mark Holland stood behind her during her official campaign kick off on Sunday and Minister of Citizens' Services of Canada Terry Beech has pledged support.
Burlington, Ont., MP Karina Gould has picked up endorsements from MPs Lisa Hepfner and Pam Damoff.
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With files from JP Tasker and the Canadian Press