Canadian policymakers are preparing a wide-sweeping set of retaliatory tariffs to impose on the United States should President-elect Donald Trump follow through on a threat to impose heavy tariffs on the nation.
Canadian Cabinet ministers discussed on Jan. 10 how they could best retaliate if the new U.S. administration imposes tariffs on imports from Canada, Foreign Minister Mélanie Joly said.
Speaking to reporters earlier on Thursday, Joly also said that Canadians should take Trump’s threats seriously and prepare for the possibility of an economic fallout between the two nations.
“This is something that not only am I very concerned about, but we have to be extremely ready because the threat of tariffs is real,” Joly said.
“At the same time, we can’t take the bait and I think also that we’re extremely strong as a country. I think our economy is strong, I think our people are strong, and I think we’ll never back down,” she added.
Trump has threatened to impose a 25 percent tariff on all imports from Canada unless Ottawa does more to boost border security.
The federal and provincial governments in Canada have nevertheless moved to boost border monitoring in an effort to avoid the tariffs.
Should Trump follow through on the threat, Ottawa is mulling retaliatory tariffs on American ceramics, steel products, glassware, and plastics. Also on Canada’s list of targets is orange juice, which is primarily made in Trump’s home state of Florida.
A previous trade dispute between the United States and Canada during the first Trump administration saw Ottawa place tariffs on a wide range of American goods including ketchup, bourbon, and motorcycles, all of which aimed at increasing pressure on American workers.
Many economists believe that Trump’s proposed tariffs would negatively impact markets by raising prices for food, clothing, automobiles, alcohol, and other goods.
More than 65 percent of the United States’ crude oil imports and 80 percent of its electricity imports come from Canada.
Speaking earlier in the week at an event put on by the Halifax Chamber of Commerce, Canadian Prime Minister Justin Trudeau said that a tariff battle between the two nations would be “devastating” for workers in both countries.
“Trump got elected on a commitment to make life better and more affordable for Americans, and I think people south of the border are beginning to wake up to the real reality that tariffs on everything from Canada would make life a lot more expensive,” Trudeau said.
Trudeau is preparing to resign from his post following months of infighting in his Liberal Party, including outcry over his apparent willingness to placate Trump’s demands. His replacement will be chosen in March.
