As the inauguration of U.S. President Donald Trump approaches, Canada braces for potential economic turbulence, preparing to retaliate against anticipated tariffs targeting Canadian exports. Reports from The Globe and Mail suggest that the Canadian federal government is poised to unveil retaliatory tariffs on U.S. imports if Trump uses his inauguration to implement the levies.
Prime Minister Justin Trudeau is expected to announce a swift consultation period, potentially lasting only two weeks, to address the proposed tariffs. These measures could initially target approximately 37 billion Canadian dollars (26 billion U.S. dollars) worth of American goods. Following the consultation, Canada would implement the tariffs without delay. If the U.S. tariffs are more severe than anticipated, additional measures covering another 110 billion Canadian dollars (76 billion U.S. dollars) in American imports might follow.
The tensions arise amid Trump’s earlier threats of protectionist policies, including steep tariffs targeting Canadian goods. Natural Resources Minister Jonathan Wilkinson, who recently met with congressional Republicans in Washington to discuss the issue, revealed that the incoming administration is considering three tariff scenarios. These include a 25% levy on Canadian goods, a 10% tariff applied globally, or an escalating tariff structure that starts low and increases over time.
The prospect of such tariffs has raised concerns on both sides of the border, as Canada and the U.S. share one of the world’s largest trading relationships. Experts warn that protectionist measures could harm industries dependent on cross-border trade, such as automotive manufacturing, agriculture, and energy. Canadian officials are determined to respond decisively to safeguard the nation’s economic interests.
“This is a matter of national interest,” Wilkinson stated, emphasizing the need for a firm but calculated approach. “We are prepared to act quickly and proportionally to any measures that disrupt our fair trading relationship.”
The proposed Canadian tariffs would target a wide range of U.S. imports, aiming to exert pressure on key American industries while minimizing domestic fallout. Trudeau’s strategy reflects an effort to balance economic resilience with the need for diplomatic engagement, hoping to deter further escalation of trade tensions.
The coming days will test the resilience of the Canada-U.S. trade partnership, as both nations navigate an increasingly uncertain economic landscape. Observers will closely watch Trump’s inaugural address and initial policy actions for indications of his administration’s trade priorities.
