Canadian government ready to reveal initial retaliation plan Monday if Trump starts ‘trade war’
By Rachel Aiello
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OTTAWA (CTV Network) — The Canadian government is ready to respond with proposed retaliatory tariffs on an initial round of American goods on Monday if U.S. president-elect Donald Trump moves to immediately levy tariffs on inauguration day.
Foreign Affairs Minister Melanie Joly spoke about Canada’s preparations on Friday, after sources confirmed to CTV News late Thursday that the federal government was poised to push back promptly, if provoked.
“This would be basically starting a trade war. The Americans would be starting a trade war against us, and this would be the biggest trade war between Canada and U.S. in decades,” Joly said in a call with reporters from Washington, D.C.
Trump has threatened to impose a 25 per cent tariff on all Canadian imports on day one of his administration, “as one of many first executive orders,” she added.
Trudeau met with all of Canada’s provincial and territorial leaders on Wednesday to discuss Canada’s response plan to the anticipated trade action.
They emerged from the hours-long meeting largely, but not unanimously, united around the plan to leave all options on the table, including 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.
Asked to confirm an estimate floated by Liberal leadership contestant and former finance minister Chrystia Freeland – that a Canadian dollar-for-dollar counter tariff could bring in $150 billion in revenue – or what the impact on Canada’s GDP would be, Joly wouldn’t say.
“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,” she said.
Joly was speaking to reporters at the tail end of her two-day trip south of the border, where she 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.
She said she thinks these officials are now better understanding how these tariffs would impact their own constituencies, and how they would work against their promises—and president-elect Trump’s campaign pledge—to make life more affordable for Americans and to improve the U.S. economy.
“So that’s why I think that we need to continue to press people on the Hill in Washington, and across the U.S., including key governors and state representatives,” said Joly.
Canada’s readiness to respond immediately comes after CTV News previously reported that Canadian officials were narrowing a list of American products to target.
A document was circulating with a list of goods that could be slapped with retaliatory tariffs, including U.S. steel products, ceramics such as toilets and sinks, glassware, and Florida orange juice.
A senior government source said Wednesday that during the meeting with premiers, talk of targeting politically impactful products such as Kentucky bourbon was well-received in the room. The official, speaking on background, said to expect a consultation period on any finalized list of items.
Despite Trump threatening tariffs, unless more is done to halt the flow of illegal drugs and migrants over the Canada-U.S. border, federal officials say they have received no assurances that their $1.3-billion border security plan will be enough to avoid the imposition of massive tariffs.
“If indeed the incoming administration moves forward with these unfair and unjust tariffs, Canada will respond,” Trudeau said Thursday, a sentiment echoed by his trade and foreign affairs ministers in respective same-day U.S. media interviews.
Conservative Leader Pierre Poilievre would not say Thursday whether he’d support energy export tariffs, something Alberta Premier Danielle Smith stood solely against after the First Ministers’ meeting, amid other premiers calling for a unified “Team Canada” response.
On Friday, Trudeau met with his newly struck Canada-U.S. relations council of prominent Canadians tasked with leveraging their respective business, innovation and policy expertise to advise the prime minister and his government “at this important time in the Canada-U.S. relationship.”
“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,” Trudeau said, adding that “if the worst-case scenario comes to pass,” the government will be leaning on 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.”
“If push comes to shove, we will be strong and unequivocal in our defence of Canada,” he said.
Trudeau has also scheduled a cabinet retreat expected to be largely focused on “defending Canadian interests and strengthening Canada- U.S. relations” for next Monday and Tuesday, and has vowed to meet with the premiers weekly following Trump’s inauguration.
With files from CTV News’ Mike Le Couteur and Stephanie Ha
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