Is Canada Preparing to Hit Back with Tariffs on the U.S. Amid Trump’s Threats?

The Canadian government is bracing for possible retaliatory measures in response to former U.S. President Donald Trump’s recent threat to impose sweeping tariffs on Canadian goods. According to a senior official, Canada is exploring targeted tariffs on American products, signaling a readiness to defend its economic interests.

In a bold move, Trump announced plans for a 25% tariff on imports from Canada and Mexico as part of his efforts to curb illegal migration and drug trafficking across U.S. borders. These measures, he stated, would be among his first executive actions should he reclaim the presidency.

On Wednesday, Trump posted on Truth Social about a conversation with Mexico’s new President, Claudia Sheinbaum, claiming progress in addressing migration issues. “Mexico will stop people from going to our Southern Border, effective immediately. THIS WILL GO A LONG WAY TOWARD STOPPING THE ILLEGAL INVASION OF THE USA. Thank you!!!” Trump wrote.

However, the potential impact of this dialogue on his tariff plans remains uncertain.

According to AP, a Canadian official who spoke anonymously revealed that Ottawa is preparing for every scenario. While no final decision has been made, discussions are underway to determine which U.S. products might face retaliatory tariffs.

During Trump’s previous term, Canada implemented billions in counter-tariffs after the U.S. imposed levies on Canadian steel and aluminum. These retaliatory measures strategically targeted politically sensitive products, such as yogurt from Wisconsin and whiskey from Kentucky—states tied to influential U.S. lawmakers.

Trump’s criticism extended to Canada’s border, despite illegal migration numbers being significantly lower than those at the U.S.-Mexico border. Between October 2023 and September 2024, U.S. Border Patrol reported 23,721 arrests along the northern border, compared to 56,530 at the southern border in October alone.

Canadian officials have called the comparison unfair but expressed willingness to enhance border security. Prime Minister Justin Trudeau convened an emergency meeting with provincial leaders, emphasizing the importance of unity.

Deputy Prime Minister Chrystia Freeland echoed this sentiment, stating, “Now is really a moment for us not to squabble amongst ourselves.”

Canada is also apprehensive about a potential surge in migrants if Trump proceeds with mass deportations. Additionally, Trump has linked Canada to fentanyl trafficking, though data shows the issue is more pronounced at the southern border. U.S. customs agents seized just 43 pounds of fentanyl at the Canadian border last fiscal year, compared to 21,100 pounds at the Mexican border.

Provincial leaders have urged Trudeau to negotiate a bilateral trade deal with the U.S. that excludes Mexico. However, no formal steps have been announced.

As Canada prepares for a possible escalation in trade tensions, the government appears determined to defend its economic and political interests on the global stage.