Economic reports or analyses from Canadian government or major economic research institutions

Canada Prepares $105 Billion in Tariffs if Trump Imposes 25% Levy; Trudeau Says "Everything on the Table"

Jan 17, 2025, 03:40 PM

Canada is preparing to impose retaliatory tariffs on $105 billion worth of U.S. goods if President-elect Donald Trump follows through with his threat to levy a 25% tariff on all Canadian imports. Prime Minister Justin Trudeau announced the formation of a Council on Canada-U.S. Relations, which includes former premiers, trade expert Steve Verheul, and businesswoman Arlene Dickinson, to address the incoming U.S. administration's tariff threats. Trudeau stated that "everything is on the table" in responding to potential U.S. measures. Foreign Affairs Minister Mélanie Joly warned that Americans would face a "Trump tariff tax" if the tariffs are implemented, signaling the potential for the largest trade war between the two countries in decades. Initial counter-tariffs could target $37 billion in U.S. goods and may include an export tax on Canadian oil and gas. British Columbia's Premier David Eby called the potential tariffs an "economic war" that could cost the province $69 billion. Bank of Canada Deputy Governor Gravelle warned that Trump's tariffs could severely harm economic growth.