Canada ready to strike back: Retaliatory tariffs on US goods

Canada is exploring retaliatory tariffs on a range of American-made goods, including orange juice, ceramics such as toilets and sinks, and certain steel products. This action would be in response to US President-elect Donald Trump’s threat to impose a 25-percent tax on all products from Canada.

Potential retaliatory tariffs and targeted goods

In addition to the previously mentioned items, Canada is considering tariffs on American glassware, flowers, and certain plastics, according to the senior source cited by The Globe and Mail. Ottawa, it said, aims to select goods in a way that minimises the impact on Canadian consumers while creating significant political pressure on US decision-makers.

The Globe and Mail citing a senior government source as saying that the list of retaliatory targets is still under development and has not yet been finalised. The news outlet said the source requested anonymity as they were not authorised to publicly discuss the matter.

According to the news publication, Canada is considering releasing the full list of proposed targets early to inform American businesses about the additional costs they would face if the US initiates a trade conflict with Canada. This move, it said, would signal Ottawa’s determination to respond if Trump proceeds with his tariff plans.

Trump threatens 25% tariff on Canadian goods, suggests Canada become the 51st state

President-elect Donald Trump has announced plans to impose a 25% tariff on all products imported from Canada as one of his first actions upon assuming office on January 20. The tariffs, Trump stated in a post on his Truth Social platform, are intended to pressure Canada to take stronger actions to prevent the entry of illegal immigrants and drugs, including fentanyl, into the United States. The tariffs will remain in place until the US borders are fully secured, he emphasised.

Trump argued that the tariffs would incentivise Canada to take more aggressive steps in addressing illegal migration and drug smuggling. “These tariffs are necessary to protect American citizens from the flood of illegal drugs and migrants coming across the border,” Trump said.

Trump suggests Canada should become the 51st US state

In addition to the tariff threat, Trump reiterated remarks suggesting that Canada should become the 51st US state. Speaking from Palm Beach, Florida, Trump remarked, “I called them Governor Trudeau because they should be the 51st state, really. It would make a great state.” Trump cited economic and defense concerns, suggesting that the US heavily subsidises Canada, with annual payments estimated at $200 to $250 billion. He also noted that Canada contributes less than 1% of its GDP to NATO and argued that joining the US would alleviate these financial burdens.

Trudeau rejects Trump’s remarks, affirms Canadian sovereignty

Canadian Prime Minister Justin Trudeau quickly responded, rejecting Trump’s suggestion of Canadian statehood. Trudeau called Trump’s remarks a “diversion,” and emphasised that Canada’s sovereignty is non-negotiable. “There’s not a snowball’s chance in hell that Canada would join the US,” Trudeau said. He argued that Trump’s rhetoric was designed to distract from more pressing negotiations.

Trudeau also warned of the significant economic consequences if Trump proceeds with the proposed tariffs. “Oil, gas, electricity, steel, aluminum, lumber, concrete—everything American consumers buy from Canada would suddenly become a lot more expensive,” he said.