Ottawa/CMEDIA: Subject to U.S.president-elect Donald Trump’s levying a 25 percent tariff on all Canadian imports immediately on inauguration day, the Canadian government reportedly said that it is prepared to respond with proposed retaliatory tariffs on an initial round of American goods on Monday.
Experts and lawmakers have warned that Trump’s levying a 25 percent tariff would be devastating for the Canadian economy.
Speaking with reporters in Washington, D.C., Foreign Affairs Minister Mélanie Joly has said the U.S. lawmakers she’s been talking to are “not only surprised, they are very worried” about the possibility of a trade war and its impact.
Canadian Prime Minister Justin Trudeau met Friday with his newly created 18-member Canada-U.S. relations council in Toronto, which includes representatives from the auto sector, unions, industry and agriculture, to get advise on Trump’s tariffs.
“This is the latest piece of our ‘Team Canada’ approach to make sure we have all hands on deck as we approach the challenge of the incoming administration…if the worst-case scenario comes to pass” he will get support from the panel of 18 to help them make their case to American contacts that the decision to impose tariffs on Canada “will hurt Americans first and foremost,” Trudeau said
“If the incoming administration moves forward with tariffs, we will not hesitate to act,” Trudeau said at the outset of the meeting. “We will respond … everything is on the table.”
Trudeau added that if the “worst-case scenario” of a trade war happens, Canada must support those who are most affected by the tariffs.
“If one region or one industry ends up carrying a larger burden of defending Canadians, we will make sure that all Canadians step up to support that region or industry. We’re in this together.
The options discussed included targeting a list of U.S. goods with retaliatory counter-tariffs, cutting off key energy exports and considering ways to distribute revenues from any Canadian retaliation to impacted sectors.
“If push comes to shove, we will be strong and unequivocal in our defence of Canada,” he said.
The counter-tariffs would come to reportedly $37 billion in goods that would be less harmful to the Canadian economy.
Subject to Trump administration’s retaliatory tariffs actions, the Canadian government’s preparation of additional retaliatory tariffs would cover up to $110 billion, which could potentially be more damaging to the Canadian economy
“We know that there would be lots of job loss across the country, and we know that this would also have an impact on cost of living for Canadians. I won’t go into the details of what that figure is like, but definitely, we have numbers that are highlighting how much this could be devastating,” Joly said.
Towards the end of her two-day trip south of the border, Joly spoke to reporters and met with a series of American officials, including Senate Majority Leader John Thune, Republican Sen. Lindsey Graham, and U.S. Secretary of State Antony Blinken.
“We are implementing our plan, which is three fold,” Joly said, explaining that the first phase is working to prevent tariffs, the second step is preparing Canada’s response to tariffs, and the third being plans to diversify Canada’s export market and ensuring there are no trade barriers across the country.
“A lot of senators are very surprised by the numbers we’re giving them. A lot of senators have never heard about this Trump tariff tax,” Joly said.
A document was being circulated with a list of goods for retaliatory tariffs, including U.S. steel products, ceramics such as toilets and sinks, glassware, and Florida orange juice.
A cabinet retreat expected to largely focus on “defending Canadian interests and strengthening Canada- U.S. relations” has also been scheduled by Trudeau for next Monday and Tuesday.
He has also vowed to meet with the premiers weekly following Trump’s inauguration.
