Canada Prepares Retaliatory Tariffs Amid U.S. Trade Threats

In response to President-elect Donald Trump's recent threats to impose a 25% tariff on all Canadian imports, Canada is considering retaliatory measures targeting a range of U.S. products. Among the items under consideration are American orange juice, toilets, and various steel products. A senior Canadian official, speaking on condition of anonymity, confirmed that the list of targeted goods is still being developed and has not yet been finalized.

The escalating trade tensions have raised concerns about the potential impact on the $773 billion bilateral trade relationship between the United States and Canada. Canada remains the top export destination for 36 U.S. states, with nearly $2.7 billion worth of goods and services exchanged daily.

Prime Minister Justin Trudeau's recent resignation has further complicated Canada's response to these threats. The leadership vacuum has left the country without a clear strategy to counter the proposed tariffs. Trudeau plans to stay on until his successor is chosen, likely by the end of March. In the meantime, Canadian officials and business leaders are expected to rally together to resist Trump's economic pressures and maintain strong trade relations with the U.S.

Ontario Premier Doug Ford has warned that Canada could halt oil and gas exports to the U.S. if the proposed tariffs are implemented. This potential move underscores the critical interdependence of U.S.-Canada trade, particularly in the energy sector.

In 2018, Canada responded to U.S. tariffs by imposing its own duties on American goods, including yogurt imports from Wisconsin and whiskey from Kentucky. These retaliatory measures were part of a broader strategy to counteract U.S. trade policies.

The current situation has prompted Canadian leaders to express serious concerns over Trump's recent comments suggesting Canada should become the 51st state. Initially perceived as a joke, these remarks are now viewed as attempts to undermine Canada's sovereignty. Finance Minister Dominic LeBlanc has emphasized the need for unity and strength in countering these provocations