Economic reports and analyses from verified sources

Canada Readies Tariffs on $320 Billion U.S. Imports if Trump Imposes 25% Tax

Jan 12, 2025, 05:26 PM

Canada is preparing to retaliate with tariffs on American goods if President-elect Donald Trump imposes a 25% import tax on Canadian exports. The Canadian government has been drawing up plans for extensive tariffs that could affect almost every category of products imported from the U.S., according to sources familiar with the matter. This comes in response to Trump's threat to start a trade war in North America upon taking office. Canadian Prime Minister Justin Trudeau has stated that Canada is ready to respond with counter-tariffs if necessary, emphasizing the significant trade relationship between the two countries, with Canada being the top export partner for about 35 U.S. states and buying about $320 billion worth of U.S.-made goods in the first 11 months of last year. Trudeau also addressed Trump's comments about Canada potentially becoming the 51st U.S. state, dismissing the idea as a 'non-starter' and a distraction from more pressing trade issues.