Canada’s Retaliatory Tariffs to Target US Goods That Cause Most Economic Pain: NB Premier

New Brunswick Premier Susan Holt speaks as she arrives for a first ministers meeting in Ottawa on Wednesday, Jan. 15, 2025. The Canadian Press/Justin Tang

Canada’s prepared retaliatory tariffs against the United States are designed to inflict maximum damage while minimizing pain to Canada, says New Brunswick Premier Susan Holt, who has seen the federal government’s plan.

“I think the kind of package that was put together and proposed by the federal government is strong, is strategic,” she said during an interview on CBC’s Power and Politics on Jan. 15.

“It’s focused on how we can inject the most pain to the targeted Americans that reduces the risk and the impact to the Canadian economy. I think that’s the right strategy.”

Incoming U.S. President Donald Trump has threatened a 25 percent tariff on Canadian imports, citing concerns over illicit drugs and illegal immigration coming into the United States through the Canadian border.

On Jan. 15, premiers gathered in Ottawa with Prime Minister Justin Trudeau and his cabinet to discuss bolstering border security aimed at dissuading Trump from imposing the tariffs, while also considering retaliatory actions if the tariffs are enforced after his Jan. 20 inauguration.

Holt did not confirm media reports that Canada will adopt a $150 billion counter-tariff plan, but said a range of options has been considered. “We have a number of different options available to us in response, depending on the severity of the action from the Trump administration,” she said, adding that Ottawa will wait to see what Trump does before responding.

Energy Export

After their meeting, Trudeau and the premiers issued a joint statement pledging support for industries affected by the U.S. tariff and Canada’s potential retaliation. While the targeted items were not disclosed, they committed to a collaborative approach and “a full range of measures” in response to potential U.S. tariffs.

Alberta Premier Danielle Smith did not sign the joint statement, saying that she opposes cutting energy exports as part of a potential retaliatory response.

“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. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies,” she wrote.

Ontario Premier Doug Ford, who had previously suggested cutting his province’s energy exports to the United States, said he respects Smith’s decision but believes “Canada comes first,” noting that each province has key sectors—such as oil, agriculture, and uranium—that could be impacted by retaliatory measures.

“Everyone has something they’re saying, ‘Hey, we may have to sacrifice a little bit,’” Ford said in a Jan. 16 press conference in Mississauga, Ontario.

Additionally, Ford called on the federal government to avoid a tariff war with the United States and instead strengthen ties by aligning supply chains and streamlining regulations, including eliminating “unfair, anticompetitive taxes like the federal carbon tax and the digital services tax,” he said.

Past Measures

During his first term, Trump imposed tariffs on Canadian steel and aluminum in 2018. He cited concerns that the importation of these products in “such quantities” would “weaken our internal economy and thereby threaten to impair national security.”

After the U.S. tariffs took effect in June 2018, Canada imposed counter measures starting in July of that year, slapping a 25 percent surtax on U.S. steel and a 10 percent surtax on its aluminum products. Another list of products, including food, household items, and appliances, faced a 10 percent tariff.

Food items targeted in the countermeasure included yogurt, coffee, maple syrup, pizza, orange juice, ketchup, mayonnaise, and certain whiskies. Household items such as tableware, toilet paper, stoves, refrigerators, dishwashers, and lawn mowers were also affected.

In May 2019, Canada and the United States agreed to lift their respective measures, pledging to prevent the importation of steel and aluminum that is “unfairly subsidized,” and to stop the transshipment of foreign-made steel and aluminum between the two countries.

Noé Chartier contributed to this report.