Canada has fiscal room to sort out affect of US tariff, finance minister says

OTTAWA (Reuters) – Canada’s new Finance Minister Dominic LeBlanc stated the nation’s monetary reserves are sufficient to help companies and people if the US imposes a serious new tariff.

U.S. President-elect Donald Trump has vowed to impose a 25% tariff on all imports from Canada and Mexico on his first day in workplace on Jan. 20 if these international locations don’t clamp down on unlawful migration and what he calls a movement of medicine throughout the borders.

“I’m reassured that the federal government has the fiscal room if there is a determination that must be made to intervene considerably,” LeBlanc stated in a podcast on Wednesday, referring to his discussions with Finance Ministry officers.

LeBlanc assumed the position after his predecessor, Chrystia Freeland, stepped down on Monday, citing variations with Prime Minister Justin Trudeau on managing funds, together with her concern about having sufficient fiscal reserve to melt the affect of a U.S. tariff.

“I do not assume any accountable authorities would enable the economic system of the nation to be completely scarred by what’s a call of one other authorities,” LeBlanc stated, including that he would meet with Financial institution of Canada Governor Tiff Macklem and industrial financial institution CEOs within the coming days.

LeBlanc didn’t elaborate on what particular help the federal government is perhaps considering.

LeBlanc, who can also be public security minister, stated he has had discussions with Trump’s choose for Commerce secretary, Howard Lutnick, and hopes to have additional talks with him earlier than the brand new 12 months to debate border points.

Earlier this week, LeBlanc and fellow ministers introduced a plan to beef up the U.S.-Canada border with helicopters, drones, surveillance towers and sniffer canines, in addition to a joint strike drive to focus on transnational organized crime.