Canada reveals border-security plan to avert Trump’s tariff pledge

Most economists predict a recession in Canada should Trump fulfill his 25% tariff pledge. Photo: AP
Most economists predict a recession in Canada should Trump fulfill his 25% tariff pledge. Photo: AP

Summary

Prime Minister Justin Trudeau’s administration is pledging to spend up to $900 million on drones, helicopters, and new agents.

OTTAWA—Canadian officials unveiled a spending plan to bolster border security in an effort to allay concerns after U.S. President-elect Donald Trump pledged to slap a 25% tariff on imports from its North American trade partners until the countries limit the flow of migrants and illegal drugs.

The administration of Prime Minister Justin Trudeau said Tuesday it would spend $1.3 billion Canadian dollars, or the equivalent of $900 million, over a six-year period to improve border security. The additional cash will be used to acquire dogs, drones, helicopters, mobile-surveillance towers, and deploy hundreds of new border agents, officials said.

According to the most recent spending documents, Canada’s government spends about C$2.2 billion a year on border enforcement and management.

Averting the tariff is crucial for the Canadian economy. Most economists predict a recession should Trump fulfill his 25% tariff pledge. Bank of Canada Gov. Tiff Macklem said a 25% tariff presents a major new uncertainty for the economy.

“It’s going to be difficult for businesses to take decisions against that background," Macklem said this month. “There is a risk that [business] investment is weaker.

How quickly the government can begin spending the funds remains unclear. Officials said they might need to initially rent helicopters to do some of the additional work, and deploy individuals from other departments to the border patrol.

Finance Minister Dominic LeBlanc, who is also overseeing public security, said he spoke this week with Trump’s nominee for Commerce Secretary, Howard Lutnick, and his pick for border czar, Tom Homan, and is optimistic that the two countries will come to an understanding on border security.

“I’m confident that as we continue to work with our American partners, they’ll see that our resolve is absolute, that we share completely their concerns around the integrity of the border," LeBlanc said.

The leaders of Canada’s provinces, alarmed by the impact tariffs would have on their regional economies, have also called for stronger border control measures.

The leader of the oil-rich province of Alberta unveiled a plan earlier this month to invest C$29 million to create a new unit with officers, drug patrol dogs and 10 surveillance drones, to monitor the 185 mile stretch of border between the province and Montana.

Vipal Monga in Toronto contributed to this article.

Write to Paul Vieira at paul.vieira@wsj.com

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