Canada is preparing a list of American products, worth around $105 billion, to be hit with retaliatory tariffs if US President-elect Donald Trump follows through on his plan to impose a 25% duty on Canadian imports, according to sources familiar with the talks.
Trump has announced that he will impose tariffs on Canada, Mexico, and China shortly after taking office next week. In response to the threat, the Canadian government has already compiled a list of goods, which would be subject to immediate retaliation if Trump’s plan is implemented, reports Bloomberg and Reuters on Wednesday.
Possible targets of the Canadian tariffs could include orange juice, steel, and other American products. The tariffs are designed to cause economic harm in the US, while minimizing the damage to Canada. If the trade dispute escalates, the list could be expanded.
On Wednesday, Canada’s provincial and territorial leaders met in Ottawa to develop a unified strategy against the looming threat. While there was general agreement on the need for a strong response, opinions diverged on the specifics of the countermeasures.
Ontario’s Premier, Doug Ford, advocated for a harsher response than a simple “dollar-for-dollar” retaliation: “You can’t just sit back and let someone hit you with a sledgehammer and not hit back twice as hard” Ford said.
In contrast, Alberta’s Premier, Danielle Smith, rejected any restrictions on energy exports to the US and pointed to the potential economic consequences for her province. She warned that such measures could trigger a “crisis of national unity”:
“Alberta will not accept export tariffs on our energy or other products, nor will we support an export ban on these products” Smith said.
Despite these differences, the leaders of all Canadian provinces and territories, except for Alberta, ultimately agreed on a joint statement, in which they committed to “work together on a range of measures to ensure a robust response to possible US tariffs.”
Meanwhile, the Canadian government is continuing its diplomatic efforts to dissuade the future US government from implementing the proposed tariffs and emphasizes the mutual benefits of the long-standing trade relations between the two countries. Additionally, Canada plans to invest more than $900 million in improving border security, including the use of drones and helicopters, to address Trump’s concerns about illegal immigration and drug trafficking.