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Canada stands prepared to retaliate against potential tariffs from its principal trade partner, the United States, should President-elect Donald Trump follow through on his threat to impose them, according to Foreign Minister Melanie Joly’s statement on Friday.
Given that Canada exports a staggering 75% of all its goods and services to the U.S., the imposition of tariffs could be financially crippling. Canadian officials have emphasized the detrimental economic impact such tariffs would also have on the United States.
Joly confidently declared to reporters after talks in Washington aimed at averting tariffs, “We have a series of counter-measures that are already in place, certainly involving tariffs on imports. If the president proceeds on Monday, we will be ready. And we are prepared for a second round, and we are prepared for a third round.”
Canada ready to "fight" back.
[Jan 15 2025, 17:24:23 EST]: CANADA READIES TARIFFS ON $105 BILLION OF US PRODUCTS IF TRUMP HITS FIRST- BLOOMBERG NEWS pic.twitter.com/nx6pyk953z
— Capital Hungry (@Capital_Hungry) January 15, 2025
Should Trump make good on his threat, Canada would immediately target a small group of goods, including orange juice from Florida, where he resides, according to a source familiar with the matter who spoke on Wednesday.
While Canada has drafted a more extensive list of potential targets, public consultations would be held before any action is taken, the source added. The extent of Canada’s potential retaliation would depend on Trump’s actions, with the source indicating that Canada could impose countermeasures on up to $105 billion worth of U.S. imports.
Energy and Natural Resources Minister Jonathan Wilkinson stated on Thursday that Canada could also impose export tariffs on critical minerals.
🇨🇦 CANADA FIGHTS BACK AGAINST DONALD TRUMP!!
Canada is ready to consider dollar-to-dollar retaliation or an export tax on Canadian oil and gas, if President-elect Donald Trump follows through with his 25% blanket tariff plans. pic.twitter.com/9iEuVNIOnG
— CEO Watchlist (@CeoWatchlist) January 17, 2025
Trump claims he wants to impose a 25% tariff to pressure Canada into tightening border security to curb the flow of illegal migrants and fentanyl smuggling, a move that would seemingly violate a free-trade agreement.
In response, Canada announced a $909 million border security plan. Prime Minister Justin Trudeau has stated that less than 1% of irregular migrants and less than 1% of fentanyl entering the United States originate from Canada.
“If push comes to shove, we will be strong and unequivocal in our defense of Canada and Canadians,” Trudeau said on Friday at a meeting of his government’s newly convened council on Canada-U.S. relations.