title: Canada Dares to Retaliate with Tariffs in Response to Potential Trade War with the U.S.
Canadian authorities are drafting a list filled with numerous American products that the U.S. exports to Canada, looking for products that send a political message and inflict a reasonable financial blow, as shared by two sources. The list includes various items, such as ceramic products, steel goods, furniture, select alcoholic beverages like Bourbon and Jack Daniels whiskey, orange juice, and pet food, among others. American energy exports are also on the list, and, if necessary, Canada could impose a tax on the energy products they send to the U.S.
However, it's important to note that there are no final decisions made yet, and the list could be modified or scrapped altogether.
During a press conference in Ottawa, Canada's foreign minister Melanie Joly expressed her viewpoint by stating, "I think we have to be ready. I think that when President Trump talks, we listen, and we need to take him very seriously."
Business leaders in Canada are preparing for a potential trade war, according to Goldy Hyder, the CEO of the Business Council of Canada. He mentioned that they have been consulting with the government and trying to provide input on retaliatory tariffs against the U.S. The CEOs have discussed various strategies for response, including matching U.S. tariffs, taking a more temperate approach, or even responding with great force.
The spat between the two nations intensified this week, with Canadian Prime Minister Justin Trudeau hinting at resignation due to crises, and Trump vowing to impose 25% tariffs on Canada unless Ottawa addresses border issues with drugs and migrants. Trump has suggested that Canada merging with the U.S. would avoid tariffs and boost security, although Canada as a major trading partner accounts for 17% of U.S. imports, including items such as lumber, cement, cars, and minerals.
President Trump also stated that the U.S. does not "need" anything from Canada because they have a small military reliant on American protection and must pay for it. These escalating tensions could lead to significant economic repercussions for both countries, particularly affecting industries like auto manufacturing, agriculture, and energy.
The escalating tensions between the two nations could significantly impact the business sector in both countries, especially industries like auto manufacturing, agriculture, and energy, due to potential tariffs. Business leaders in Canada are actively preparing retaliatory measures, considering options such as matching U.S. tariffs or responding with great force.
The ongoing spat could also influence the economic stability of both nations, as Canadian authorities are drafting a list of American products, including energy exports, that could be subject to additional taxes or restrictions, aimed at sending a political message and inflicting reasonable financial damage.
