Canada is preparing to impose substantial tariffs on US goods worth nearly $30 billion if the new US administration, under President Donald Trump, follows through with its trade threats. According to sources close to the matter, the Canadian government has compiled an extensive list of American products that could face significant import duties in retaliation to potential US tariffs.
The initial round of countermeasures could include tariffs on goods worth approximately CAD 37 billion (around USD 28 billion). These tariffs are set to be imposed as soon as Trump takes office, with the Canadian government already preparing for swift action.
In addition to this initial round, Canada is considering further retaliatory tariffs that could cover up to USD 110 billion in American imports, depending on the actions taken by the Trump administration. However, these additional tariffs may pose greater risks to the Canadian economy, potentially making them more damaging.
Canadian Prime Minister Justin Trudeau has made it clear that while Canada does not seek a trade war, the country will not hesitate to take decisive action should the US move forward with its tariff plans. “If the new administration imposes tariffs, we will respond without hesitation. All options are on the table,” he warned.
The threat of a trade war between Canada and the United States escalated after Donald Trump’s election victory in November 2024. Trump has already indicated plans to impose a 25% tariff on all goods from Canada and Mexico and significantly raise duties on Chinese imports. These potential trade policies have caused concerns in both Canada and the US, with Trudeau warning that such tariffs would hurt not only Canadians but also American consumers, who would see price hikes and damage to industry and business.
In late November 2024, Prime Minister Trudeau visited Florida to meet with Trump, hoping to address these looming issues. During their discussions, Trudeau emphasised the harm that would befall both nations if such tariffs were enacted, arguing that higher prices and disruptions to business would be felt on both sides of the border.
