Canada is preparing retaliatory tariffs on up to $105 billion in US goods, should President-elect Trump impose his proposed 25% levy on Canadian imports, according to government sources.
Following Trump’s announcement of widespread tariffs on Canada, Mexico, and China to curb illegal immigration and drug trafficking—including a 25% tax on all Canadian goods entering the US—Canada has prepared a list of approximately $105 billion worth of US goods for potential retaliatory tariffs. Bloomberg and Reuters reported on Wednesday that this initial list includes orange juice and steel, targeting American products to minimize Canadian harm while maximizing economic pressure on the US. This list may expand if the trade dispute intensifies.
Canadian provincial and territorial leaders met in Ottawa Wednesday to strategize. While a strong response was broadly supported, disagreements arose over specific measures. Ontario Premier Doug Ford advocated for a forceful response exceeding simple dollar-for-dollar retaliation, stating, “You can’t let someone hit you over the head with a sledgehammer without hitting them back twice as hard.” Conversely, Alberta Premier Danielle Smith opposed any energy export restrictions to the US, warning of severe economic consequences and a potential “national unity crisis,” stating, “Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products.”
Ultimately, all Canadian provincial and territorial leaders, excluding Alberta’s Premier Smith, issued a joint statement pledging to “work together on a full range of measures to ensure a robust response to possible US tariffs.” Canada continues diplomatic efforts to prevent the tariffs, highlighting the mutual benefits of their long-standing trade relationship. To address Trump’s immigration and drug trafficking concerns, Canada plans over $900 million in enhanced border security, including drones and helicopters.