Canada is looking at putting retaliatory tariffs on American orange juice, toilets and some steel products if U.S. President-elect Donald Trump follows through with his threat to impose 25% tariffs on all Canadian products, a senior official familiar with the matter said Thursday.
The official said the wide-ranging list hasn't been completed yet. The official spoke on condition of anonymity as they were not authorized to speak publicly on the matter.
Trump said this week he will use economic coercion to pressure Canada to become the nation’s 51st state. And he continues to erroneously cast the U.S. trade deficit with Canada — a natural resource-rich nation that provides the U.S. with commodities like oil — as a subsidy.
Outgoing Prime Minister Justin Trudeau said Trump is trying to distract from his threats of stiff tariffs by talking about making Canada the 51st state.
“President Trump ,who is a very skillful negotiator, is getting people to be somewhat distracted by that conversation,” Trudeau said.
“Everything American consumers buy from Canada is suddenly going to get a lot more expensive if he moves forward on these tariffs. And that’s something we need to be focusing on a little bit more.”
Trudeau made comments in an interview with CNN in Washington, where he attended the funeral for the late U.S. president Jimmy Carter.
When Trump imposed higher tariffs during his first term in office, other countries responded with retaliatory tariffs of their own. Canada, for instance, announced billions of new duties in 2018 against the U.S. in a tit-for-tat response to new taxes on Canadian steel and aluminum.
“We would definitely respond as we did years ago," Trudeau said.
Yogurt imports from Wisconsin and whiskey from Kentucky, the home states of top Republicans Paul Ryan and Mitch McConnell respectively, were hit with 10% duties in 2018.
Florida, Trump's home state, is known for its extensive citrus production.
Trump said this week the U.S doesn’t need anything from Canada, including automobiles, lumber and dairy products. Supply chains for the auto industry are deeply connected, with parts manufactured in Ontario being used in cars that are assembled in Detroit and then sold back to Canada.
Ontario Premier Doug Ford has noted that in the auto sector alone parts can go back and forth across the Canada-U.S. border several times.
Ford, the leader of Canada's most populous province, said Trump has been misinformed about the U.S. not needing Canadian products. Almost a quarter of the oil the U.S. consumes every day is from Canada, with Alberta exporting 4.3 million barrels a day to the U.S. According to the U.S. Energy Information Administration, the U.S. consumes about 20 million barrels a day, while domestically producing about 13.2 million barrels a day.
Ford warned that Canada will retaliate if Trump imposes tariffs. He said a wide range of U.S. products shipped to Canada will be targeted, but he declined to specify which ones.
Top Canadian government officials say Trump’s comments that Canada should become the 51st state are no longer a joke and are meant to undermine America’s closest ally.
“The joke is over,” Dominic LeBlanc, the country’s finance minister and point person for U.S.-Canada relations, said Wednesday. “It’s a way for him, I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”
LeBlanc has been talking to incoming Trump Cabinet officials about a billion-dollar plan to increase border security in an effort to deflect Trump's threat of tariffs. Trudeau called that a win for Trump.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.
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30 Comments
Zaphod
Sanctions are not set in stone, they are an instrument for negotiations. And Trump uses them as policy instrument, which is vastly preferrable to the military adventurism that the neocons and neolibs love.
Ken
These conman tactics are abuse of presidential power. Why did they let him slither his way back into the white house?
JJE
It is bitterly and exquisitely, deliciously ironic that Canada, Europe and others, after vassalising themselves to the US in an effort to counter an imagined, conjured-up Russian/China threat, now find their economies - and one of their territories being threatened (actually 2) - not by Russia/China - but by the US itself.
In my opinion, they deserve it. It's called a reckoning with their geopolitical impotence. Waking up and realizing that your existence was a coddled theme park with absent-mined ideological rhetoric, that is existentially dependent on the relative position of someone else (the hegemon) and how he feels about that relative position.
deanzaZZR
I do not follow mainstream media closely but surely this is a joke.
rainyday
A price I'm happy to pay in order to not be forced to become an American against my will.
zulander
Pls fact check yourself - you can disagree with this "casting", but it is not something you can declare an "error". A trade deficit with a region can be interpreted as a subsidy.
rainyday
In what way is it possible to interpret the US trade deficit with Canada a "subsidy"? American businesses using their own money to buy oil, lumber and other commodities from Canadian businesses at market prices is in no way, shape or form a "subsidy". Its clearly erroneous, and deliberately so.
SomeWeeb
Only if you have a woefully inaccurate and deliberately uninformed view of economic matters. Do you subsidize Wallmart when you get a 50 pack of cookies from there? It's called a purchase. Canada is a large provider of goods and services but they don't require as much stuff in return from the US, because get this: There's less people there.
Peter14
Trump has no "diplomatic" skills or understanding. He see's things in two dimensions only, as a business revolving around money. Peoples lives, safety, education are all beneath Trumps radar. He is simply inept.
Trump will drive American reputation into the dirt for another 4 years, assuming he lasts that long in office, (he is old and his mind continues to degrade). Not even in office yet but already alienating close allies and even giving threats of takeovers. Acting like Putin and Xi claiming what belongs to others should belong to America, because he says it is needed.
What a disgusting individual the next US President is, and it will get much worse before the world see's the last of him.
Sad for my American friends who will live in a nation despised by allies and enemies alike.
Bad Haircut
This is all talk and part of the show before real negotiations. And with the government of Canada set to change with the Liberals turfed out in the next few months, there will be far more sensible heads going in to bat for Canada who won't be openly hostile toward their southern neighbour.
rainyday
Every leader of every major party left, right and centre in Canada is extremely opposed to Trump, even Polievre. The ones coming out hardest against Trump are in fact Conservatives right now.
Speed
I'll say one thing about Trump's presidencies. They're never boring! I've got popcorn popping on the stove and am about ready for the second of this wild double-feature.
WA4TKG
I for one, stopped drinking orange juice as much when I realized / discovered a MAJOR label here in Florida was actually using BRAZILIAN oranges….that was after jacking up the price of course
rainyday
Much easier to do in a country like Canada with a functioning health insurance system.
bass4funk
If he didn't he wouldn't have created the empire that he did.
Bingo!!! And that is why we voted for him, the country should run as a business and not a political ideological football, this is why politics in the US have become so stale and stagnant.
Well, no, that would be the Democrat party who ignore all of these things, all of them.
It already is, we voted to get out of it.
He will be fine and if something were to happen to him, you would have to deal with a very smart, slick younger version of himself in Vance and then the lefts nightmare truly begins because Vance is worse than Trump, so careful what you wish for, either way, his policies would continue.
I feel the same about the current President and administration, just 11 more days until the nightmare is over.
Most Americans really could care less what the rest of the world thinks of us; we didn't ask for their blessings or approval when we voted, we are on the American First agenda. Now, if Canada really wants to play hardball with the trade we have with them, so be it, they will lose that fight within a month or less.
-Crude Oil and Petroleum Products
Energy is one of the most significant exports from the U.S. to Canada. This includes crude oil, refined petroleum products, and natural gas. The U.S. exports large amounts of crude oil to Canada, as well as gasoline, diesel, and other refined petroleum products.
-Automotive Parts and Vehicles
Automotive trade is another major component of U.S.-Canada trade, with the U.S. exporting a wide range of auto parts, engines, and finished vehicles to Canadian manufacturers and consumers. This trade is closely tied to the integrated supply chains between the two countries.
-Machinery and Equipment
The U.S. exports industrial machinery, including construction equipment, engines, turbines, and agricultural machinery to Canada. These exports are crucial for various sectors, such as manufacturing, construction, and agriculture.
-Aircraft and Aerospace Equipment
The aerospace industry is also a key export sector, with the U.S. supplying aircraft, spacecraft, and parts, including engines and components used by Canadian aerospace companies and airlines.
-Plastics and Chemicals
The U.S. exports significant amounts of plastics, chemicals, and resins to Canada. These products are used in manufacturing and other industries, including pharmaceuticals, packaging, and construction.
-Agricultural Products
Agricultural exports from the U.S. to Canada are extensive and include products such as corn, soybeans, wheat, fruits, vegetables, and processed foods. The two countries have strong agricultural trade ties, especially in processed food and beverages.
-Pharmaceuticals and Medical Equipment
The U.S. is a key supplier of pharmaceutical products and medical devices to Canada, which includes prescription drugs, vaccines, diagnostic equipment, and surgical tools.
-Electrical Machinery and Equipment
Exports of electrical machinery and equipment such as semiconductors, telecommunications devices, and electronic components are crucial for Canada’s technology, telecommunications, and electronics industries.
-Minerals and Metals
The U.S. also exports metals and minerals to Canada, including aluminum, copper, iron, and steel. These materials are used in construction, manufacturing, and various industrial processes.
-Consumer Goods
Various consumer goods, such as electronics, appliances, clothing, and household items, are also significant U.S. exports to Canada, feeding into the robust consumer market. If the Canadians think that they have the upper hand or a monopoly on this, good luck.
lincolnman
I know of two great ways to reduce the national debt - would be gone in ONE MONTH if implemented...
1) Put a tariff on Trump's mouth...
Yes, every time he says something stupid, idiotic, brainless, vapid, or just generally a LIE - make him pay a tariff...
The way he's been going, if we implement it now, the debt may be gone before his inauguration...
2) Put a tariff on incoming foreign tech workers....
Make King Elon and Vassal Vivek pay a tariff on each Indian or Chinese worker they "import" to replace a US worker...
Fair is fair - buy a Chinese-made EV instead of a US one, pay a tariff.... Employ a Chinese tech worker instead of a US one, pay a tariff...
What do you think MAGA-fans? Great way to cancel out that $9.2 trillion Trump ADDED to the debt last time....
rainyday
Hardball? What the hell are you talking about? One minute we are sitting here minding our own business, obeying all the rules and behaving normally. The next minute, totally unprompted, your guy is threatening to destroy my country and force me to become an American against my will. And for what? Because you Americans are buying too much Canadian stuff? Seriously? If you don’t want to buy Canadian oil and lumber then nobody on my side of the border is forcing you to FFS.
This is totally insane. You guys hate immigration but suddenly you all want to add 40 million Canadians to your population just because Trump suddenly blurted the idea out on social media?
Leave us the F alone and mind your own GD business.
ClippetyClop
It doesn't want a 'tariff battle' in the first place, Trump does.
I thought you were in favour of free trade, markets, etc. Why would you support this? Everyone loses, it's ludicrous.
bass4funk
Liberals might be better, save us a lot of grief.
Make sure you send your kids to private schools
If they are not qualified and have a degree in gender studies, then yes.
That won't happen
Relax, it's only Friday.
rainyday
Both countries benefit from friendly relations.
Easy to say when it isn’t your country being threatened.
Which is why Canada doesn’t go picking fights with other countries. But if you threaten another country don’t complain when they follow your lead.
You base this on what exactly? Just because it would be insane for the US to actually invade doesn’t mean the senile old man you put in charge won’t give it a try.
Yeah, nobody is asking me, Trump and you supporters of his are threatening me with a very personal consequence. What the F is going to happen to me and my children if this fantasy of his goes through? If the US anexes Canada then Canada will no longer exist as a country. So what are our options under that plan then? Either become a citizen of the US or become stateless? WTF did we do to you that was so horrible that you want to visit this upon my F’ing family?
bass4funk
Then your argument is not with me.
Canada is not being threatened.
Well, they can't even if they wanted to.
Come again???
Again, won't happen, but as I said, talks are already underway, just talks and that is a good thing.
Relax, no one is threatening you.
You did nothing, so not sure why the hysteria. Nothing will change in the sense that you will remain Canadian and American, but combining the currencies and eliminating trade....sounds very tantalizing
ClippetyClop
Why on earth would you want to be 'eliminating trade'?
You didn't make one. This is like talking to Homer Simpson.
bass4funk
Why not, it would be a win, win for both nations.
I did
Then don't make cartoon arguments please.
ClippetyClop
Do you know what 'eliminating' means?
rainyday
The soon to be head of a foreign state with the means to do so has publicly said he wants to anex my country against our will. if Xi Jinping said that about the US - and had the ability to carry through on it - you would not consider that a threat?
Yup, I and my fellow Canadians did nothing. But you want to take our country and make it yours. I don’t want my country, whose army I proudly served in, to cease to exist, is it that hard to understand?
WTF? I can’t “remain” Canadian and American because I’m not an F'ing American. I was born Canadian and I’m going to die a F’ing Canadian. Nationality and love of your country might not mean anything to you but it does to me.
So in order to stop goods from Canada from entering the US, which is bad for some reason, your plan is to eliminate the border…..so those same goods can go from the exact same place to the exact same place like they always have but that way you don’t have to call it “trade”? Like that semantic trick is worth eliminating my country for?
bass4funk
Rhetorical question?
Different story, different language, history, culture, geographics, nothing remotely in common.
No one said otherwise
"Ours", clarification, both sides.
Not sure what you are so upset about.
Anyway. talks are underway, so relax and have a Molson and let's see what happens. Arguing with me is not going to stop talks or dissuade anyone. Take it easy. We both can't stop this.
rainyday
No, “yours.”
The proposal is for Canada’s constitution, the rights and freedoms it embodies, and our form of government to cease to exist and for us to be subject to YOUR constitution, which has a very different set of rights and freedoms, and YOUR form of government which is also different from ours. And for us, rather than you, to cease to exist as an independent nation. The proposal isn’t for the US to become the 11th province of Canada, its for us to be your 51st state. Would you be comfortable if the shoe was on the other foot?
We don’t want to be a part of your f’ed up country, end of story. And why the hell would you even want to add another 40 million people who would overwhelmingly vote Democratic to your system anyway? adding Canada as a state would block Republicans from gaining control of the house or winning the electoral college ever again. (Also, Canada has 10 provinces so we’d be your 51st to 61st states, not just your 51st).
The only reason you’ve explained for this is that you don’t like it when goods move from one point in North America to another when doing so involves crossing a line on a map, but you are totally fine with those exact same goods moving between those exact two locations when that line isn’t there because then you don’t have to call it “trade” anymore. That is beyond idiotic.
I’ve made it abundantly clear. Do you want the American constitution to cease to exist and be forced to carry a Canadian passport the rest of your life? That is the equivalent to me of what you are acting so bewildered about why I’m making such a fuss over. Are you really this incapable of putting yourself in the shoes of others?
Blacklabel
haD 10 provinces.
bass4funk
No, “yours.”
Relax.
I don't do hypotheticals
If it is so messed up, why so many Canadians come to my country? In 2022, more than 126,000 Canadians moved to the United States, which was a 70% increase from the previous year. This is a 10-year high. You are welcome.
That is slowly changing
Well, Florida used to be a Blue state and then people got a hold of their senses.
For you, but I think it makes perfect sense
Relax, let the politicans work it out, I am looking forward to hearing what they say.
Underworld
Zaphod
No, they aren't. They are instruments for trade wars where everyone loses. The WTO is the instrument for negotiations.
What are you talking about? The US doesn't do military adventurism.