Federal Finance Minister Bill Morneau has promised that Ottawa will support Canadian business as Ottawa gears up for a trade war with the U.S.
During a meeting with provincial finance ministers in Ottawa, Minister Morneau tried to reassure Canadian companies that the federal government will protect their interests during what could be a protracted trade war with Canada’s southern neighbour.
“We're absolutely going to stand behind Canadian businesses who are challenged by these tariffs,” said Minister Morneau, referring to U.S. tariffs applied to Canadian exports of steel, aluminum and other products.
To date, the federal, provincial and territorial governments have maintained a common front in dealing with Trump's protectionist policies, which includes the difficult renegotiation of the North American Free Trade Agreement. Ottawa’s response, tit-for-tat tariffs to the Trump administration's stinging levies on steel and aluminum imports, will take effect Sunday (July 1).
A few weeks ago, Ottawa released a list of dozens of U.S. products that it intends to target with tariffs. But Minister Morneau said Tuesday afternoon that he wasn't quite ready to release the final version of Canada's response to the U.S. duties.
“We are in the process of doing our homework and that's very important to have an approach that works,” Minister Morneau told reporters in Ottawa following the meeting of federal, provincial and territorial finance ministers.
There are concerns that U.S. President Donald Trump could retaliate against Ottawa's countermeasures. The president has repeatedly warned he could apply tariffs on autos -- which some fear could be a much bigger danger for the Canadian economy. Asked by reporters if he's worried an escalation in the trade battle could trigger a recession, Minister Morneau said the Canadian economy is in good shape right now.
"There is always a concern that if there's a change in the level of trade that there will be a bigger problem," said Minister Morneau, who noted the dispute and the retaliatory tariffs weren't Canada's choice to begin with.
