Trudeau plans targeted counter-tariffs if US imposes restrictions, with energy exports in focus
Canada is preparing a multi-stage plan to respond to potential US tariffs on Canadian goods, according to BNN Bloomberg.
Prime Minister Justin Trudeau’s government is readying counter-tariffs targeting US products, with the extent of retaliation depending on actions taken by US President-elect Donald Trump after his inauguration.
An official, who requested anonymity, stated that Canada’s immediate response to US tariffs would focus on 10 high-profile goods, such as Florida orange juice and Kentucky bourbon, designed to draw attention in the US.
However, the government has also prepared extensive lists of potential counter-tariffs if broader trade measures are enacted. One such list encompasses $37bn worth of US products, while another could reach up to $150bn.
Canada’s retaliation list includes all US steel and aluminum imports, totalling 3.74 million tons of steel worth US$5.93bn and 430,000 tons of aluminum valued at US$1.91bn in 2023, based on US Commerce Department data.
Any tariffs on these products would first be subject to public consultation.
The Canadian government’s position remains that the US-Mexico-Canada Agreement (USMCA) should prevent such tariffs.
Trudeau emphasized proportionality, stating: “Everything is on the table, and I support the principle of a dollar-for-dollar response.”
However, matching tariffs dollar-for-dollar would become impractical if the US imposes restrictions on a wide range of goods, including Canadian oil.
In such a scenario, Trudeau’s government would consider alternative policies to encourage the lifting of US tariffs. Export taxes, for instance, could raise costs for US consumers by applying surcharges on Canadian energy and critical mineral exports.
Export taxes, however, have faced resistance from Canada’s western provinces.
Alberta Premier Danielle Smith publicly opposed any measures that could affect energy exports, refusing to sign a joint statement from a recent meeting between Trudeau and Canada’s provincial leaders.
She stated on social media: “We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies.”
I had a constructive discussion with my fellow Premiers on how best to deal with the threat of tariffs from the incoming U.S. administration. We agreed on several strategies and I look forward to continuing to work with them on this critical issue.
— Danielle Smith (@ABDanielleSmith) January 15, 2025
However, federal government… pic.twitter.com/d4SK23LU6G
Canada’s plan builds on its 2018 response, when tariffs imposed by the Trump administration prompted Canada to levy retaliatory measures on $16.6bn worth of US goods.
The Trudeau government aims to avoid escalating trade tensions while maintaining leverage in its largest export market.
