Liberal leadership contender Chrystia Freeland says everything should be on the table when it comes to Canada’s response to U.S. President Donald Trump’s tariffs, while insisting she can get provinces united on that response.
“We have to be prepared to use every single tool in the toolbox,” Freeland told CTV Question Period host Vassy Kapelos in an interview Sunday, when asked whether she, as prime minister, would block energy exports to the U.S. or add an export tax to them.
“We have to recognize this is an existential crisis,” Freeland added. “My approach will be to be strong, to be smart and to be united, and to do the work we need to do on the home front to be sure that we have that united coalition with provinces, with business, with labour.”
The former deputy prime minister and finance minister added she’s “done it before,” pointing to her role in helping renegotiate NAFTA during Trump’s first term.
On Saturday, Trump announced he’s following through on his threat from the fall to impose significant 25 per cent tariffs on Canadian imports, with an exception for energy, which will have a 10 per cent tariff.
The executive order implementing those tariffs — signed from Trump’s Florida estate, Mar-a-Lago — also outlines a retaliatory clause promising to escalate and increase the tariffs when Canada pushes back.
Canada’s countermeasures, according to Prime Minister Justin Trudeau on Saturday night, will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days, to allow Canadian companies and supply chains to find alternatives.
So far, when asked, federal government officials have refused to take the prospect of banning energy exports to the U.S. off the table. days
Speaking to reporters on Parliament Hill Saturday night, when asked whether Trump’s threats to escalate the trade war change his calculation on that front, Trudeau said: “It means that any conversations around further measures, particularly involving one industry or one region of the country more than another, is something that we’re going to do carefully and thoughtfully and with the full partnership of regional leaders, provincial premiers, businesses.”
“No one part of the country should be carrying a heavier burden than any other,” he added.
Alberta Premier Danielle Smith has stood staunchly opposed to that idea, arguing Canada should do more to address Trump’s concerns around border security, instead of making threats it may not be able to follow through with. The issue has caused tension between Smith, the federal government, and her fellow premiers, in recent weeks.
In a post to social media on Saturday, Smith wrote that Alberta will “continue to strenuously oppose” proposals to impose an export tax on, or ban entirely, energy sold to the United States.
Canada is the number one supplier of energy to the U.S., supplying more than 99 per cent of U.S. natural gas imports, 85 per cent of U.S. electricity imports, and 60 per cent of U.S. crude oil imports, in 2023.
When pressed on whether she would move ahead on cutting off energy exports without provincial consent — despite the pushback on that prospect from Alberta Premier Danielle Smith and Quebec Premier François Legault in particular — Freeland said: “The way to move ahead is to be strong.”
“I am confident that I can lead a united Canadian response, because that’s the way we are strong,” Freeland said. “At the end of the day, we are fighting back, not for the sake of it, but we’re fighting back to be successful.”
When asked again whether — if she becomes prime minister— if she would seek provincial consent before cutting off Canadian energy exports to the U.S., Freeland didn’t directly answer.
“I am confident, given my track record, given my work with premiers of provinces and territories, that I will be able to build a united Canadian coalition to use all the tools in our toolbox and to fight for Canada,” Freeland said. “I’m confident I can do that.”
Freeland also said this is “not a moment for any kind of infighting inside the Canadian tent,” adding she’s encouraging people to buy domestic products whenever possible and “boycott America.”
The Liberal leadership hopeful added Canada needs to find a way to “activate Americans,” to help them realize the impacts of the tariffs on both economies.
Prior to Trump’s tariff imposition on Saturday, Freeland had advocated for Canada to also target all Tesla vehicles with a 100 per cent tariff, along with all U.S. wine, beer and spirits.
On Sunday, Freeland, along with other Liberal leadership contenders Mark Carney, Karina Gould, Frank Baylis and Ruby Dhalla, released a joint statement calling Trump’s tariffs “unjustified.”
“No matter who is elected the next leader of the Liberal Party of Canada, we each vow to stand up against these unjust tariffs to protect Canadian workers and businesses and to defend our country’s sovereignty,” the statement reads.
With files from CTV News’ Rachel Aiello
