Canada is taking steps to prepare for potential retaliatory tariffs on its products in the event that President-elect Donald Trump imposes sweeping tariffs as threatened. According to a senior official, Canada is examining possible targets for tariffs if Trump follows through with his plan.
The threat comes after Trump announced plans to impose a 25% tax on all products entering the US from Canada and Mexico if the countries don’t stop illegal migration across their borders. However, in a post on Wednesday evening, Trump claimed he had reached an agreement with new Mexican President Claudia Sheinbaum to stop migrants from entering the US through Mexico.
Despite this, it remains unclear whether the conversation will impact Trump’s plan for tariffs. Canada has started considering what products to target with retaliatory tariffs and has prepared for every eventuality.
In 2018, Canada imposed billions of dollars in new duties on US products in response to new taxes on Canadian steel and aluminum. Many of these products were chosen for their political impact, such as a 10% duty on yogurt from Wisconsin and whiskey from Tennessee and Kentucky.
Canadian officials argue that lumping Canada with Mexico is unfair and say they are willing to invest in border security and work with the Trump administration to reduce migration numbers from Canada. They are also concerned about the potential influx of migrants from the US if Trump follows through with his plan for mass deportations.
Source: https://finance.yahoo.com/news/canada-already-examining-tariffs-certain-205118879.html