Canada Ready to Unveil $37 Billion in Counter-Tariffs as Trump Takes Office
The Canadian government is preparing to launch an initial wave of retaliatory tariffs targeting $37 billion worth of U.S. goods. These counter-tariffs could be unveiled as early as Monday, coinciding with the inauguration of incoming U.S. President Donald Trump.
The planned response comes in anticipation of Trump’s threat to impose a 25% across-the-board tariff on Canadian imports. Ottawa’s initial counter-tariffs are designed to minimize harm to the Canadian economy, but officials are also considering additional measures that could escalate to cover up to $110 billion in U.S. goods if the situation worsens
If enacted by the U.S., the Canadian countermeasures would require a consultation period of 15 to 30 days before taking effect, giving both nations a short window to negotiate or reconsider their positions.
Speaking at a news conference following a tour of Anchor Danly, a steel manufacturing company in Windsor, Ontario, Prime Minister Justin Trudeau emphasized Canada’s readiness to respond.
“If the incoming administration moves forward with tariffs, we will not hesitate to act,” Trudeau stated. “We will respond … everything is on the table.”
Trudeau stressed the importance of unity in facing potential economic fallout, adding, “If one region or industry bears the brunt of defending Canadians, all Canadians will step up to support them. We’re in this together.”
To address Trump’s tariff threats, Trudeau has convened an 18-member Canada-U.S. relations council. The council includes representatives from the auto sector, unions, industry, and agriculture, tasked with advising the federal government on navigating this critical trade relationship.
Trump’s proposed tariffs could have significant consequences for the Canadian economy, with estimates suggesting up to 500,000 job losses in Ontario alone. British Columbia’s government predicts a $69 billion economic hit by 2028, should the tariffs materialize.
Trump has not yet enacted the proposed tariffs but has indicated the possibility of doing so shortly after taking office. Canada’s counter-tariffs would aim to send a strong message without escalating the trade dispute into an all-out economic conflict.
As the situation develops, Trudeau reiterated that the government is committed to demonstrating that “there are no winners in a trade fight,” while taking steps to support the industries and regions most affected.
Stay tuned for updates as this story develops.