Canada is preparing for potential US tariffs in retaliation against President-elect Donald Trump’s threat to impose sweeping tariffs on Canadian products. The country has started examining what items to target with tariffs, with a focus on those with significant economic impact.
Trump’s tariff threat comes after he posted that Mexico will stop migrants from crossing the southern border, effective immediately. However, it remains unclear if this conversation will affect his plan to impose tariffs.
Canada is not taking Trump’s claim as a given and has warned that lumping their country in with Mexico is unfair. Canadian officials say they are ready to make new investments in border security but fear the implications of mass deportations could lead to an influx of migrants north of the border.
The US-Canada trade relationship is significant, with Canada being the top export destination for 36 US states and nearly $3.6 billion worth of goods and services crossing the border each day. Canada also supplies over 60% of US crude oil imports and 85% of US electricity imports.
Prime Minister Justin Trudeau has convened an emergency virtual meeting with provincial leaders to present a united front against potential tariffs. The country’s Deputy Prime Minister, Chrystia Freeland, stressed that it is essential for Canadians not to squabble among themselves during this challenging time.
Mexico’s President Claudia Sheinbaum said her administration is working on a list of possible retaliatory tariffs if the situation comes to that. However, she also stated that she had an “excellent conversation” with Trump and expressed willingness to work with him on the issue.
Source: https://apnews.com/article/canada-trump-tariffs-trudeau-c741393c2f7c7545e9714839cfbbda45