Canada prepares tariffs on $105 billion US goods if Trump moves first

Canada has drafted an initial list of US-made products worth C$150 billion ($105 billion) that it would target with tariffs if President-elect Donald Trump follows through on his plan to impose tariffs on Canadian goods.

An official familiar with the matter, who spoke on the condition of anonymity, confirmed the existence of the draft list, adding that these tariffs would only take effect if the US administration takes the first step, Caliber.Az reports citing Bloomberg.

The official also noted that additional tariffs could be considered depending on how the US proceeds. However, the specific products on the initial list have not been disclosed. Canada’s response to Trump’s 2018 tariffs on steel and aluminium included levies on a variety of US goods, such as whiskey and washing machines, as a way to apply pressure on manufacturing regions with significant Republican political influence. At that time, tariffs covered C$16.6 billion of US exports.

Canada imported C$487 billion of US goods over the year ending in November, so the proposed retaliatory tariffs would affect nearly one-third of the total value of products imported from the US.

Prime Minister Justin Trudeau and provincial leaders met in Ottawa on Wednesday to discuss strategies for handling potential US protectionism. The premiers of 12 of Canada’s 13 provinces and territories agreed to a joint statement pledging cooperation on measures to respond to potential US tariffs. However, Alberta Premier Danielle Smith expressed reservations, particularly regarding proposals to tax or reduce energy exports.

Ontario Premier Doug Ford, whose province is central to Canada's auto industry, emphasized the importance of unity in responding to Trump’s escalating threats. Last week, Trump suggested using “economic force” to eventually make Canada a part of the US.

“When Donald Trump comes at us, he’s not going to say, ‘Let’s not worry about Ontario, they’re good people, or Alberta.’ He’s coming full tilt at Canadians as a whole,” Ford said. “And that’s one thing we have to understand. We need to be united.”

In his opening remarks at the meeting, Trudeau sought to maintain a positive tone, emphasizing potential areas for Canada-US cooperation, particularly in the energy sector. He pointed out that Canada possesses the critical minerals essential for transforming the US economy. “If they don’t get them from Canada, they’ll get them from China,” Trudeau warned.

However, internal divisions within Canada are complicating the country’s response. Smith, a conservative, reiterated her opposition to measures like export tariffs on energy products, which she believes would harm Alberta’s interests. “Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs,” Smith stated. “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.”

Alberta is responsible for the majority of Canada’s daily oil exports to the US, which makes up more than half of US crude imports.

Meanwhile, Ontario Premier Ford arrived at the meeting wearing a blue hat reading "Canada Is Not For Sale" and expressed strong support for retaliatory tariffs. “You can’t let someone hit you over the head with a sledgehammer without hitting them back twice as hard, in my opinion,” he said.

By Tamilla Hasanova