Canada’s prepared retaliatory tariffs against the United States are designed to inflict maximum damage while minimizing pain to Canada, says New Brunswick Premier Susan Holt, who has seen the federal government’s plan.
“I think the kind of package that was put together and proposed by the federal government is strong, is strategic. It’s focused on how we can inject the most pain to the targeted Americans that reduces the risk and the impact to the Canadian economy. I think that’s the right strategy,” she said during an interview on CBC’s Power and Politics on Jan. 15. [Transcript]
Incoming U.S. President Donald Trump has threatened a 25 percent tariff on Canadian imports, initially citing concerns over illicit drugs and illegal immigration, and later referencing the trade deficit with Canada as additional reasons. Details of the tariff have not yet been announced.
On Jan. 15, Premiers gathered in Ottawa with Prime Minister Justin Trudeau and his cabinet to discuss bolstering border security aimed at dissuading Trump from imposing the tariffs, while also considering retaliatory actions if the tariffs are enforced after his Jan. 20 inauguration.
Holt did not confirm media reports that Canada will adopt a $150 billion counter-tariff plan, but said a range of options has been considered. “We have a number of different options available to us in response, depending on the severity of the action from the Trump administration,” she said, adding that Ottawa will wait to see what Trump does before responding.
Senior government officials, speaking anonymously, have suggested other potential responses to the U.S. tariff. One official told The Canadian Press that Ottawa could target U.S. products like steel, ceramics, and plastics. Bloomberg also cited an anonymous source saying Ottawa’s immediate response would likely focus on about 10 high-profile goods, such as Florida orange juice and Kentucky bourbon.
Energy Export
After their meeting, Trudeau and the First Ministers issued a joint statement pledging support for industries affected by the U.S. tariff and Canada’s potential retaliation. While the targeted items were not disclosed, they committed to a collaborative approach and “a full range of measures” in response to potential U.S. tariffs.
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Alberta Premier Danielle Smith did not sign the joint statement, later explaining in a Jan. 15 social media post that she opposes cutting energy exports as part of a potential retaliatory response.
“Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies,” she wrote.
Ontario Premier Doug Ford, who had previously suggested cutting his province’s oil and gas supply to the United States, said he “respects Minister Smith” but believes “Canada comes first,” noting that each province has key sectors—such as oil, agriculture, and uranium—that could be impacted by retaliatory measures.
“Everyone has something they’re saying, ‘Hey, we may have to sacrifice a little bit,’” Ford said in a Jan. 16 press conference in Mississauga, Ontario. He estimated that the U.S. tariff could affect 250,000 to 500,000 people.
Additionally, Ford called on the federal government to avoid a tariff war with the United States and instead strengthen ties by aligning supply chains and streamlining regulations, including eliminating “unfair, anticompetitive taxes like the federal carbon tax and the digital services tax,” he said.
The British Columbia government has provided a clearer picture of the potential impact of the U.S. tariff, saying in a Jan. 16 press release that the measure could cost the province $69 billion and lead to the loss of up to 124,000 jobs between 2025 and 2028.
Past Measures
During his first term, Trump imposed tariffs on Canadian steel and aluminum in 2018. He cited concerns that the importation of these products in “such quantities” would “weaken our internal economy and thereby threaten to impair national security.”
After the U.S. tariffs took effect in June 2018, Canada imposed counter measures starting in July of that year, slapping a 25 percent surtax on U.S. steel and a 10 percent surtax on its aluminum products. Another list of products, including food, household items, and appliances, faced a 10 percent tariff.
Food items targeted in the countermeasure included yogurt, coffee, maple syrup, pizza, orange juice, ketchup, mayonnaise, and certain whiskies. Household items such as tableware, toilet paper, stoves, refrigerators, dishwashers, and lawn mowers were also affected.
In May 2019, Canada and the United States agreed to lift their respective measures, pledging to prevent the importation of steel and aluminum that is “unfairly subsidized,” and to stop the transshipment of foreign-made steel and aluminum between the two countries.
Noé Chartier contributed to this report.
