Canada targets key US products in retaliation to Trump’s tariff threat

Canada is preparing to retaliate with a wide range of tariffs on American goods if President-elect Donald Trump follows through on his plan to impose a 25 per cent import tax on Canadian products.

Sources informed CNN that Canadian officials are working on a list of US exports to Canada that would target both politically significant and economically impactful items, Caliber.Az reports citing foreign media.

Potentially included in this list are ceramic products, steel, furniture, alcohol (such as Bourbon and Jack Daniel’s whiskey), orange juice, pet food, and even energy exports. Canada might also impose taxes on the energy products it exports to the US as a last resort.

Although the list of items is still being finalized, Canadian Foreign Minister Melanie Joly emphasized the importance of being prepared for any situation, warning that there will be consequences if Trump follows through with tariffs on Canadian goods. She noted that Canada has leverage in this dispute.

Canadian businesses are bracing for a trade war with the US, with Goldy Hyder, CEO of the Business Council of Canada, stating that his organization’s members, including top CEOs, have been consulted on how best to respond. He mentioned that responses could range from mirroring US tariffs to taking a stronger stance. Business leaders have been preparing for potential trade conflicts under Trump’s presidency for nearly a year.

Trump’s threat to impose tariffs is part of a broader strategy aimed at addressing US concerns over illegal drug flows across the border. He suggested that Canada could avoid tariffs by merging with the US, claiming that this would eliminate tariffs, reduce taxes, and make Canada more secure.

Canada is the US' largest trading partner, importing $419 billion in goods from Canada in 2023, including oil, lumber, and minerals. Trump has also criticized Canada’s military reliance on the US and suggested that Canada should pay more for defenc e. As tensions rise, Canada is preparing for the economic and political consequences of a trade war with its southern neighbor.

By Vafa Guliyeva