Canada is preparing a sweeping list of retaliatory tariffs on U.S. goods if President-elect Donald Trump enforces his proposed 25% levy on Canadian exports. According to Bloomberg, citing sources within the Canadian government, these measures could extend far beyond the selective counter-tariffs imposed during the 2018 trade dispute under the previous U.S. administration. Besides revisiting earlier targets like Kentucky bourbon and Florida orange juice, Canada is considering tariffs on nearly every U.S. export product. Prime Minister Justin Trudeau’s administration aims for a “dollar-for-dollar” response, though officials acknowledge this approach may not fully match U.S. tariffs in a worst-case scenario. Key highlights:
- Canada imported $320 billion in U.S. goods in the first 11 months of 2024, nearly equaling the European Union’s $341 billion.
- A U.S. 25% tariff could reduce Canada’s GDP by up to 3.8%, with retaliatory tariffs amplifying the impact to as much as 5.6%.
- Trudeau’s government is also exploring export taxes on strategic commodities, such as oil and uranium, as a pressure tactic.
Trudeau has expressed hopes of avoiding a trade war while warning of significant consequences for U.S. exporters. However, economic analysts caution that Canada’s retaliatory actions would also harm its domestic economy.
