Canada Plans $37 Billion in Retaliatory Tariffs on U.S. Imports Amid Trump's Tariff Threats

Jan 16, 2025, 05:46 PM

Canada is preparing to respond to potential tariffs from incoming U.S. President Donald Trump with a series of retaliatory measures. Prime Minister Justin Trudeau has announced plans to unveil retaliatory tariffs on approximately $37 billion of U.S. imports if Trump proceeds with his tariff threats on Inauguration Day. These initial tariffs are designed to cause the least economic damage to Canadians. Trudeau also mentioned the possibility of additional consultations on tariffs covering another $110 billion of American goods, depending on the severity of the initial U.S. tariffs. Canada's strategy includes considering export taxes on commodities like oil, uranium, and potash, as well as restrictions on exports to the U.S. The federal government's approach has been met with resistance from Alberta Premier Danielle Smith, who refused to sign a joint statement with other premiers, citing concerns over potential export taxes or bans on Alberta's energy products. Smith's stance has led to criticism from Trudeau and other Canadian leaders, who emphasize the need for a unified 'Team Canada' response to Trump's threats. Meanwhile, Energy and Natural Resources Minister Jonathan Wilkinson has indicated uncertainty about the exact nature of Trump's tariff plans, mentioning three potential options: a 25% tariff on Canadian goods, a 10% tariff for all countries, or an escalating tariff starting low and rising over time.