Trudeau’s government is planning a first round of counter-tariffs that could be unveiled as soon as incoming US President Donald Trump is sworn in on Monday, Radio-Canada confirmed.
The counter-tariffs would apply to $37 billion in goods that would be less harmful to the Canadian economy.
Trump has threatened to impose a blanket 25 percent tariff on Canadian goods.
The Canadian government is also preparing additional retaliatory tariffs that would cover up to $110 billion, depending on the Trump administration’s actions. These could potentially be more damaging to the Canadian economy.
The initial retaliation could come as soon as Monday if Trump signs them into law after being sworn in. A consultation period of between 15 and 30 days would be required before the tariffs take effect.
On Friday, Prime Minister Justin Trudeau met in Toronto with his newly created Canada-U.S. Relations Council, which he assembled to support the federal government in its fight against Trump’s tariff threat. The 18-member council includes representatives from the automotive sector, unions, industry and agriculture.
“If the incoming administration moves forward with tariffs, we will not hesitate to act,” Trudeau said at the start of the meeting. “We will respond…everything is on the table.”
Trudeau added that if the “worst-case scenario” of a trade war occurs, Canada must demonstrate that there are no winners in a trade fight, while also supporting those most affected by the tariffs.
“If one region or industry ends up carrying the greater burden of standing up for Canadians, we will ensure that all Canadians step up to support that region or industry. We are in this together.”
More to come.
