Speaking from a cabinet retreat Tuesday, Prime Minister Justin Trudeau made the case for why the Trump administration should divert from the trade war collision course they’re currently on. His comments come just a day after Donald Trump was inaugurated as US president and mused about slapping 25 per cent tariffs on Canadian imports starting Feb. 1st.

The Prime Minister went on to say that while the country will continue to negotiate - there are also preparations to fight back including considering dollar for dollar tariffs on American products coming into Canada.

Today we are talking to Canadian economist Jim Stanford about the carrot and stick arguments Canadian officials are making to Americans. Stanford is director of the Centre for Future Work and recently published a report asking the question “Who’s Subsidizing Whom?” when it comes to the Canada-U.S. trade relationship.

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