Canada has prepared billions of dollars in retaliation for Trump’s threats

The Canadian government is preparing thousands of dollars in retaliation against US exports to Canada if President-elect Donald J. Trump makes good on his threat to impose tariffs on Canadian goods, raising the possibility of the conflict between two countries that are each other’s biggest traders. partner.

Canada is putting together a list of measures, including tariffs on U.S. exports to Canada and taxes or other restrictions on major Canadian exports to the U.S., if it imposes a 25 percent tariff on goods. Mr. Trump is Canadian.

But the government made clear it would wait to see what Mr Trump might do before responding.

“Everything is on the table,” Prime Minister Justin Trudeau said at a news conference in Ottawa, flanked by senior members of his government and the leaders of most of the provinces and territories there. Canada. Mr Trudeau spent much of Wednesday discussing with provincial leaders how best to prepare for possible US tariffs.

Currently, the Canadian government is operating under the assumption that Mr. Trump is serious about the tariffs, which he has linked to the flow of undocumented immigrants and drugs across the US-Canada border.

Canada has already announced several steps to strengthen the border, including more personnel and technology. The government said on Wednesday it had also deployed Blackhawk helicopters and several other drones to strengthen joint border surveillance.

But in recent weeks, Mr. Trump said his motivation for potential tariffs on Canadian goods may not be just about border security. The president-elect has repeatedly talked about Canada becoming another US state, threatening economic power to unite the country.

Mr. Trump argued that Canada has a trade surplus with the United States, while the United States provides significant security guarantees to Canada, to make a case that the relationship favors Canada and needs to be looked at. the difference.

Mr. Trump’s comments were met with disbelief and anger among Canadian political leaders.

All tariffs violate the trade agreement between the United States, Mexico and Canada, originally known as NAFTA (North American Free Trade Agreement), which was renegotiated during Mr. Trump first. It was planned to be renewed next year, but the introduction of tariffs by all countries would jeopardize the agreement, which could lead to chaos.

Mr. Trudeau, on Wednesday, said Canada is ready to meet the incoming Trump administration’s aggressive economic actions with equal aggression.

“I support the concept of a dollar response,” Mr. Trudeau said. Officials say it could lead to Canada imposing tariffs on hundreds of billions of dollars worth of U.S. exports.

Canada could impose tariffs on key US imports such as orange juice, officials said, although Mr Trudeau acknowledged on Wednesday that the government’s tariffs would hurt both countries and their consumers.

The debate over how to control the potentially crippling fees has strained relations between Canada’s federal government in Ottawa, the capital, and powerful provincial leaders.

While most of the prime ministers rallied behind Mr. Trudeau and tried to develop a “Team Canada” approach, some made contrasting remarks.

Danielle Smith, the leader of the province of Alberta, which is a major source of oil for the United States, has repeatedly said that she will not agree to disrupt the main resource in her province, even if the targeting strengthens the export of oil to the United States. oil exports to the United States. negotiation hand.

Ms. Smith, who traveled to Mar-a-Lago to meet with Mr. Trump alone this week, attended Wednesday’s meeting remotely and did not sign a joint statement issued by the provincial leader and Mr. Trudeau. Instead, he issued his own statement.

“Federal government officials continue to publicly and privately float the idea of ​​cutting energy supplies to the United States and imposing tariffs on the export of Alberta energy and other products to the United States,” Ms. Smith said in a statement. ‘an article in X. “Until these threats come to an end, Alberta will not be able to fully support the federal government’s plan to deal with the threatened tariffs.

Mr. Trudeau, a member of his government and a premier from another province explained that tariffs on oil exports need to remain on the negotiating table as a tool to pressure the Trump administration.

About 80 percent of Canada’s oil is exported to the United States, which relies on Canada for half of its oil.

If Canada moves to retaliate with its own wage, “it has to be fair across the country,” Mr. Trudeau said.

Mr. Trudeau this month announced plans to resign in early March, when the Liberal party elects a new leader who will become prime minister. The country is expected to go to federal elections soon, in the spring, putting a lame duck leader in charge during the first phase of the new Trump administration.