Investing.com-- Canada has drafted a preliminary list of U.S. goods valued at C$150 billion ($105 billion) for potential tariffs should President-elect Donald Trump impose levies on Canadian products, Bloomberg reported on Thursday citing a source familiar with the matter.
The list, while subject to expansion, underscores Canada’s readiness to respond aggressively if such protectionist measures are enacted.
This prospective move recalls Canada’s 2018 countermeasures to U.S. steel and aluminum tariffs, where targeted levies were placed on products like whiskey and washing machines to maximize political pressure. At that time, Canadian tariffs affected about 1C$6.6 billion in U.S. exports, a fraction of the proposed C$150 billion in the current draft.
The retaliatory scope now represents nearly a third of Canada’s C$487 billion annual imports from the U.S., the Bloomberg report stated.
After winning the elections, Donald Trump had vowed to sign an executive order imposing a 25% tariff on all products coming into the U.S. from Mexico and Canada.
Reuters also reported that Canada has drawn up a list of targets but would hold public consultations before acting, citing a source.
Canada's proposed countermeasures would be divided into three groups. If Trump does not go ahead with the tariffs, Canada would immediately target a small group of goods, including orange juice from Florida, the Reuters report stated.
Prime Minister Justin Trudeau convened a meeting with provincial leaders in Ottawa to address U.S. trade threats and bolster a unified national response, according to the reports.
Alberta Premier Danielle Smith withheld full support, objecting to proposals such as energy export taxes or curtailments, measures she called “destructive federal policies.”, the Bloomberg report stated. Alberta is pivotal in the Canada-U.S. energy trade, exporting over half of the crude oil the U.S. imports.
Ontario Premier Doug Ford (NYSE:F), a vocal supporter of retaliatory tariffs, emphasized unity, asserting, “You can’t let someone hit you over the head with a sledgehammer without hitting them back twice as hard.” Ford also highlighted Ontario’s significant stake in trade, as the province anchors Canada’s automotive industry, Bloomberg reported.