LeBlanc says Canada has fiscal tools to protect economy from possible US tariff increase
Canada’s Finance Minister Dominic LeBlanc has assured Canadians that the country has the financial capacity to support businesses and individuals if the United States imposes a 25% tariff on Canadian imports.
US President-elect Donald Trump said he would impose the tariff on all imports from Canada and Mexico on his first day to curb illegal migration and drug trafficking across the US-Canada and US-Mexico borders.
In a podcast on Wednesday, LeBlanc said that Canada’s fiscal reserves are enough to support businesses and individuals if the tariff is enacted.
"I am reassured that the government has the fiscal room if there's a decision that has to be made to intervene significantly," LeBlanc said, emphasizing the government’s commitment to mitigating any lasting economic harm caused by external policy decisions.
LeBlanc assumed the finance portfolio after Chrystia Freeland’s resignation earlier this week. Freeland, who had voiced concerns about Canada’s fiscal reserves and their adequacy to soften the blow of a potential US tariff, stepped down citing differences with Prime Minister Justin Trudeau over financial management.
LeBlanc acknowledged these concerns and assured Canadians that his discussions with Finance Ministry officials confirmed Canada’s readiness to respond effectively. However, he did not provide specifics on the type of support measures the government might consider.
"I don't think any responsible government would allow the economy of the country to be permanently scarred by what is a decision of another government," LeBlanc said.
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LeBlanc also mentioned ongoing discussions with Howard Lutnick, Trump’s nominee for Commerce Secretary, to address cross-border concerns.
Earlier this week, Canadian officials announced plans to enhance border security through new measures, including helicopters, drones, surveillance towers, and sniffer dogs. A joint Canada-US strike force will also target transnational organized crime, aiming to address the challenges cited by the incoming US administration.
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