Canada to retaliate in kind if Trump imposes additional tariffs

By: 600011 On: Jan 18, 2025, 5:30 PM

 

 

Canada is responding to US President-elect Donald Trump's threat to impose a 25 percent tariff on Canadian imports. Outgoing Canadian Prime Minister Justin Trudeau said that he would not hesitate to retaliate in kind if Trump imposes additional tariffs. Government sources also clarified that Canada has multiple plans to respond to Trump.

If Trump goes ahead with the decision to impose a 25 percent tariff on Canadian imports, Canada's response will be to impose counter tariffs worth about $37 billion. In addition, it is possible to impose tariffs on another $110 billion. If Trump's tariffs are low, Canada's counter tariffs will also be modest. Therefore, the Canadian government has made it clear that no decisions will be made until Trump's decision on tariffs is made.
Energy and Natural Resources Minister Jonathan Wilkinson, who was in Washington, said that even Republican senators do not have a clear idea of what Trump's tariff plan is. Wilkinson said there are indications that three tariff options are being considered. He said they could be 25 percent tariffs, 10 percent tariffs, and a lower duty that increases over time. In any case, a meeting of Canada's premiers has reached an agreement to jointly confront the threat of tariffs being raised by the US.

Outgoing Canadian Prime Minister Justin Trudeau has announced the creation of a Canada-US Relations Council to support the federal government. The 18-member council includes representatives from the auto industry, the nuclear energy sector, agriculture and the labour movement.