'Devastating': Ford warns of impact of new tariffs promised by Donald Trump

Ontario Premier Doug Ford is warning that Donald Trump’s promise to impose a 25 per cent tariff on goods arriving in the United States from Canada and Mexico could have a “devastating” effect on the province’s economy.

Ford made the comment in a statement posted to X on Monday night, less than an hour after Trump indicated that he would be signing an executive order to implement the tariffs on his first day in office.

“A 25 per cent tariff would be devastating to workers and jobs in both Canada and the U.S. We need a Team Canada approach and response—and we need it now,” Ford wrote.

“Prime Minister Trudeau must call an urgent meeting with all premiers.”

Trump previously promised to impose a 10 or 20 per cent tariff on Canadian imports at the U.S. border during the presidential campaign but in a post on Truth Social on Monday night he went further, saying that he “will charge Mexico and Canada a 25 per cent tariff on ALL products coming into the United States.”

Trump said the new tax would be in effect until Mexico and Canada get a better handle on drugs, notably fentanyl, and migrants crossing the border illegally.

The Canadian Chamber of Commerce has previously suggested that even a 10 per cent tariff on Canadian goods would result in around $30 billion per year in economic costs for Canada’s economy.

TD has also estimated that Trump’s tariffs could ultimately lead to a five per cent reduction in Canadian exports to the U.S. by early 2027.

News of the potential tariffs comes on the same day that Ford wrote a letter to Prime Minister Justin Trudeau on behalf of Canada’s premiers asking for an urgent meeting ahead of Trump’s return to office.

Trade between Ontario and the United States is valued at more than $450 billion annually, according to the Ontario government.

With files from Reuters