Canada prepares to respond to US tariffs if Trump follows through on threats – Foreign Ministry
Photo: Minister of Foreign Affairs of Canada Mélanie Joly (president.gov.ua)
Canada is prepared to respond to US trade tariffs if President Donald Trump follows through on his threats immediately after his inauguration, Reuters reports.
If Trump proceeds with his threats, it could severely impact the economy, as Canada exports 75% of all its goods and services to the US. Today, Minister Mélanie Joly participated in talks in Washington aimed at preventing tariffs.
"We have a series of measures that are already prepared, certainly, tariffs linked to imports. If the President goes ahead on Monday, we will be ready. And we are ready for a second round and we are ready for a third round," she stated.
Possible Canadian response
Reuters, citing sources, reports that Canada may quickly impose tariffs on a small group of American goods, including orange juice from Florida (where Trump's residence is located).
According to a source, the list of potential goods is quite broad, but before imposing tariffs, Canada will conduct public consultations. The scale of the response will depend on the actions of the incoming US president.
Preliminary estimates suggest that Canada may impose countermeasures on US imports worth around $105 billion.
Energy and Natural Resources Minister Jonathan Wilkinson previously stated that critical minerals could be included in the trade tariffs.
Why Trump wants to impose tariffs on imports from Canada
Trump keeps saying that he wants to impose a 25% duty to push Canada to tighten border controls to stem the flow of illegal migrants and stop fentanyl smuggling. However, such a move violates the free trade agreement.
Canada has already announced a nearly $1 billion plan to enhance border security. Prime Minister Justin Trudeau stated that less than 1% of illegal immigrants and less than 1% of fentanyl enter the US through the Canadian border.
For more details on what Trump's new trade wars mean for Ukraine and the world, read the material by RBC-Ukraine.
Previously, Canada stated it was ready to buy more American goods to avoid the imposition of duties, including submarines.
Read about what to expect from the next president in the near future in the material by RBC-Ukraine.
