Business and political leaders in Canada say there will be pain if Donald Trump follows through on his pledge to impose a 25 per cent tariff on all Canadian goods, but they note the hurt will happen in his country as well.The president-elect posted to Truth Social on Monday he will sign an executive order imposing a 25 per cent tariff on all products coming in to the United States from Canada and Mexico.He said the tariff will remain in place until both countries stop drugs, in particular fentanyl, and people from illegally crossing the borders.The threat was met with a call to action by the Canadian Chamber of Commerce, which said Canada needs to urgently adapt its approach to trade talks with the U.S.The chamber’s president and CEO Candace Laing said that “being America’s ‘nice neighbour’ won’t get us anywhere.”“President-elect Trump’s intention to impose 25 per cent tariffs signals that the U.S.-Canada trade relationship is no longer about mutual benefit. To him, it’s about winners and losers — with Canada on the losing end,” said Laing in a statement on Tuesday.“We’re facing a significant shift in the relationship between long-standing allies. Canada’s signature approach needs to evolve: we must be prepared to take a couple of punches if we’re going to stake out our position. It’s time to trade ‘sorry’ for ‘sorry, not sorry.'”Prime Minister Justin Trudeau spoke with Trump after the president-elect’s announcement on social media that a senior official described as productive and focused on trade and security.The two leaders agreed to stay in touch. Trudeau also had calls with Ontario Premier Doug Ford and Quebec Premier François Legault.Previous modelling by the Canadian Chamber of Commerce suggested a 10 per cent across-the-board tariff would reduce the size of the Canadian economy between 0.9 and one per cent, resulting in around $30 billion per year in economic costs.It estimated the U.S. would see around US$125 billion a year in economic costs.University of Calgary economist Trevor Tombe, who authored the chamber’s report on that modelling prior to the U.S. election, said on X that the Canadian economy would take an annual real GDP hit of around 2.6 per cent when updating for a 25 per cent tariff.That would equate to around $2,000 per person, he said.Ford posted on social media that a 25 per cent tariff would be devastating to workers and jobs in both (ICE TORONTO)

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