Canada Will Impose $105 Billion In Tariffs On U.S. Imports If Trump Acts

Canada is prepared to impose countermeasures on up to C$150 billion ($105 billion) worth of U.S. imports if President-elect Donald Trump enforces tariffs on Canadian goods and services, a source familiar with the matter revealed, David Ljunggren and Promit Mukherjee reported for Reuters.

75% of Canada’s goods and services exports are destined for the U.S.

The Canadian government has compiled a list of potential targets but plans to hold public consultations before taking any action, the source said, emphasizing that the scope of the response would depend on Trump’s measures.

Prime Minister Justin Trudeau recently met with the premiers of Canada’s 10 provinces to discuss the potential fallout and determine the list of tariff targets.

Trump has proposed a 25% tariff to pressure Canada into tightening border security to curb illegal migration and fentanyl smuggling—measures that violate the terms of the North American free-trade agreement.

Given that 75% of Canada’s goods and services exports are destined for the U.S., such a move would have severe economic consequences.

The countermeasures, according to the source, will be divided into three categories. Initial tariffs would target a small set of goods, such as Florida orange juice—a symbolic move, as Trump resides in the state.

“Nothing can be off the table if the U.S. continues to choose these punishing tariffs,” Trudeau stated after his meeting with the premiers.