Canada is considering retaliatory tariffs if President-elect Donald Trump imposes sweeping tariffs on Canadian products. Trump has threatened a 25% tax on products entering the U.S. from Canada and Mexico to stop the flow of drugs and migrants. A Canadian official, speaking anonymously, mentioned that Canada is preparing for every eventuality and is considering which items to target with tariffs.
In response to Trump’s previous tariffs, Canada imposed billions of new duties against the U.S. in retaliation. These tariffs were chosen for their political impact, targeting products like yogurt from Wisconsin and whiskey from Tennessee and Kentucky.
Trump’s threat to impose tariffs follows concerns about illegal migrants and drugs at the Canadian border, even though the numbers are significantly lower than at the Mexican border. Canadian officials are willing to work with the Trump administration to lower the numbers but express concerns about an influx of migrants north if mass deportations occur.
Canadian officials argue that their country is not the problem and that tariffs would have severe implications for both countries. Canada is the top export destination for 36 U.S. states and is essential to the U.S.’ domestic energy supply. Prime Minister Justin Trudeau is meeting with provincial leaders amid calls for a bilateral trade deal with the U.S. that excludes Mexico. Mexican President Claudia Sheinbaum is also considering retaliatory tariffs in response to the situation.
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