Ontario Premier Doug Ford (left) and Prime Minister Justin Trudeau at a gathering in Ottawa on Jan. 15. (Justin Tang/The Canadian Press by way of AP)
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Canada’s draft plan to retaliate in opposition to U.S. tariffs could roll out in levels, with the federal government getting ready to hit all American metal and aluminum merchandise with counter-tariffs if needed, stated an official with information of the matter.
Prime Minister Justin Trudeau’s authorities is getting ready for various eventualities relying on what U.S. President-elect Donald Trump does after the inauguration, the official stated, talking on situation they not be recognized.
If Trump imposes any tariffs on Canada, the speedy response from Ottawa would seemingly be focused at about 10 high-profile items akin to Florida orange juice and Kentucky bourbon, meant to generate U.S. consideration, the individual stated.
However Canada has additionally drafted for much longer lists of potential tariffs if Trump proceeds with broad commerce measures in opposition to its northern neighbor, which is the biggest purchaser of U.S. manufactured items. A kind of lists provides as much as about C$37 billion ($26 billion) price of U.S. merchandise, and one other goes to C$150 billion.
Trudeau outlined a few of the plan in a Jan. 15 assembly with leaders of Canada’s 13 provinces and territories. It will solely be triggered if Trump hits Canada with tariffs first; the Canadian authorities’s place is that the U.S.-Mexico-Canada settlement — a revised regional commerce deal negotiated by Trump in his first time period in workplace — ought to proceed to use.
If it involves a broader commerce struggle, nonetheless, Canada’s retaliation listing would apply to an enormous vary of merchandise — together with all metal and aluminum merchandise Canada imports from the U.S., the official stated. It will be posted for public session earlier than any tariffs are applied.
Canada imported 3.74 million tons of metal merchandise from the U.S. in 2023, valued at about $5.93 billion, in keeping with U.S. Commerce Division information. U.S. aluminum exports to Canada amounted to 430,000 tons for that 12 months, with a price of $1.91 billion, the division stated.
In 2018, when Trump imposed some restrictions on Canadian metal and aluminum, Canada retaliated with its personal levies in opposition to about $16.6 billion of U.S. items.
Trudeau’s acknowledged goal is to be proportional to what Trump does, and keep away from escalating the state of affairs whereas nonetheless discovering Canada’s areas of leverage with the U.S. “All the pieces is on the desk and I assist the precept of a dollar-for-dollar response,” Trudeau informed reporters on Jan. 15.
With the threats of tariffs from the incoming U.S. administration, Prime Minister Justin Trudeau launches the Council on Canada-U.S. Relations. Be taught extra: https://t.co/d3oVRJVWfH
— CanadianPM (@CanadianPM) January 16, 2025
However Canadian authorities officers informed Bloomberg that if Trump actually tariffs every little thing from Canada, together with oil, it turns into impractical to match the worth in response.
At that time, Canada must have a look at different coverage responses to persuade Trump that the commerce struggle isn’t price it.
“The query that we ask ourselves at the start is: If the administration chooses to herald tariffs, what’s it that we will do that may outcome within the lifting of these tariffs as shortly as attainable?” Trudeau stated.
Canada’s vitality and significant mineral exports to the U.S. are the trickiest problem. If Trump exempts these from tariffs, Trudeau’s authorities has examined the potential for utilizing export taxes — basically a surcharge designed to drive up the price of gas and electrical energy within the U.S. and apply stress to the U.S. administration.
How about this for constructing a “Workforce Canada 🇨🇦” method?
1. Cease threatening the livelihoods of tens of 1000’s of Albertans & Canadians by way of an vitality export tax or ban.
2. Instantly begin building on the Northern Gateway & Vitality East pipelines to diversify our… pic.twitter.com/OPQiHBX3sG
— Danielle Smith (@ABDanielleSmith) January 16, 2025
However the thought of export taxes has already generated a backlash from the western provinces of Alberta and Saskatchewan, the place Canada’s deposits of oil, uranium and potash are concentrated.
Alberta Premier Danielle Smith refused to signal the joint assertion out of the assembly between the prime minister and premiers, saying she couldn’t comply with any plan that included the potential for taxing or decreasing vitality exports.
“We’ll take no matter actions are wanted to guard the livelihoods of Albertans from such damaging federal insurance policies,” Smith stated in a social media publish.
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