Canada prepares retaliation against Trump’s tariffs

Initial countermeasures would target over $100 billion worth of US goods, according to Bloomberg

Canada is preparing to impose retaliatory tariffs on up to $105 billion worth of US goods if President-elect Donald Trump enforces his proposed 25% levy on Canadian imports, according to officials familiar with the discussions.

Trump has announced plans to impose sweeping tariffs on Canada, Mexico, and China shortly after taking office, aiming to pressure these nations to curb illegal immigration and drug trafficking. Specifically, he has vowed to introduce a 25% tax on all products entering the US from Canada.

The Canadian government has already drafted an initial list covering approximately $105 billion worth of US goods that would face immediate retaliatory tariffs should Trump proceed with his plan, according to sources cited by Bloomberg and Reuters on Wednesday.

Potential targets reportedly include orange juice, steel, and other American products designed to inflict economic discomfort in the US while minimizing damage to Canada. The list may expand if the trade dispute escalates further.

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Canada plans to fight back against Trump tariffs – Bloomberg

Canada’s provincial and territorial leaders gathered in Ottawa on Wednesday to devise a unified strategy against the looming threat. While there was broad agreement on the need for a strong response, divisions emerged over specific countermeasures.

“You can’t let someone hit you over the head with a sledgehammer without hitting them back twice as hard,” said Ontario Premier Doug Ford, advocating for a more forceful response than a simple “dollar-for-dollar” retaliation.

However, Alberta Premier Danielle Smith expressed opposition to any restrictions on energy exports to the US, citing potential economic repercussions for her province.

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“Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products,” Smith said, warning that such measures could trigger a “national unity crisis.”

Eventually, the leaders of all Canada’s provinces and territories, except Alberta’s Smith, agreed to a joint statement committing to “work together on a full range of measures to ensure a robust response to possible US tariffs.”

The Canadian government continues to engage in diplomatic efforts to dissuade the incoming US administration from implementing the proposed tariffs, emphasizing the mutual benefits of the longstanding trade relationship between the two countries. To address Trump’s concerns over illegal migration and drug trafficking, Canada also plans to invest over $900 million in border security enhancements, including the deployment of drones and helicopters.