An initial list of C$150 billion worth of US-manufactured goods has been drafted, intended for retaliatory action should President-elect Donald Trump impose tariffs on Canadian imports. While this list is preliminary, it signals Canada’s readiness to respond in kind. This reflects the approach taken during the 2018 steel and aluminium tariff dispute when Canada targeted US exports like whiskey and washing machines.
The proposed tariffs represent nearly a third of Canada’s annual imports from the US, which totalled C$487 billion in the year leading up to November. This move highlights Canada’s determination to protect its economic interests against growing US protectionism.
Prime Minister Justin Trudeau recently convened a meeting with provincial and territorial leaders to discuss strategies. Twelve of the 13 provinces and territories endorsed a joint statement supporting collaborative measures to counter potential US tariffs. Yet, Alberta Premier Danielle Smith dissented, rejecting proposals to tax or limit energy exports—key elements in Alberta’s economy and a significant component of Canada’s exports to the US.
Smith’s concerns underscore a longstanding tension between Alberta and the federal government, particularly regarding energy policy. Alberta, which supplies over half of US crude imports, views any limitations on energy exports as detrimental to its economy. Smith has emphasised her commitment to safeguarding Alberta’s interests, even if it means diverging from the federal government’s plans.
Ontario Premier Doug Ford, representing Canada’s automotive industry, has taken a more direct stance. Ford’s public declaration that Canada must retaliate strongly against any US aggression reflects his belief that unity is essential. Donning a “Canada Is Not For Sale” cap, Ford argued for decisive action to counter US protectionist measures, aligning with Trudeau’s call for collaboration.
Despite regional divides, Trudeau has expressed optimism about Canada-US partnerships, particularly in energy and critical minerals. As the US transitions to a greener economy, Canada’s resources could play a pivotal role. However, Trudeau warned that if the US does not source these materials from Canada, it risks reliance on nations like China, further emphasising the importance of bilateral cooperation.
This potential trade conflict illustrates the complex interplay of domestic and international politics. While Canada aims to present a united front against US tariffs, internal disagreements and regional interests complicate its efforts. The coming months will test the nation’s resolve to navigate these challenges while defending its economic sovereignty.
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