Canada Readies Billions of Dollars in Retaliatory Moves to Trump Tariff Threat

2 weeks ago 11

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The government is preparing for the possibility that the incoming U.S. administration will impose high tariffs on Canadian goods, setting the close allies up for a showdown.

Prime Minister Justin Trudeau of Canada speaking at a microphone.
Prime Minister Justin Trudeau of Canada speaking at a news conference on Wednesday in Ottawa.Credit...Blair Gable/Reuters

Matina Stevis-Gridneff

Jan. 15, 2025, 6:38 p.m. ET

The Canadian government is preparing billions of dollars in retaliatory measures on U.S. exports to Canada if President-elect Donald J. Trump makes good on a threat to impose tariffs on Canadian goods, setting up a potential showdown between two countries that are each other’s largest trading partners.

Canada is assembling a list of measures, including tariffs on U.S. exports to Canada and levies or other restrictions on key Canadian exports to the United States, if Mr. Trump imposes a sweeping 25 percent tariff on Canadian goods.

But the government made clear that it will wait to see what Mr. Trump might do before responding.

“Everything is on the table,” Prime Minister Justin Trudeau said during a news conference in Ottawa, flanked by senior members of his government and the leaders of most of Canada’s provinces and territories. Mr. Trudeau spent most of Wednesday discussing with provincial leaders how to best prepare for potential U.S. tariffs.

For now, Canada’s government is working under the assumption that Mr. Trump is serious about tariffs, which he has linked to the flow of undocumented migrants and drugs across the U.S.-Canada border.

Canada has already announced a series of steps meant to beef up the border, including more personnel and technology. The government on Wednesday said it was also deploy Blackhawk helicopters and more drones to bolster the surveillance of the shared border.

Image

Royal Canadian Mounted Police officers patrolling a wooded area on the Canada-U. S. border this month in Saint-Bernard-de-Lacolle, Quebec.Credit...Graham Hughes/Reuters

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