As the threat of sweeping U.S. tariffs on Canadian goods looms, international trade lawyers say Canada is prepared to retaliate swiftly and decisively. U.S. President Donald Trump has threatened to impose massive tariffs on Canada as early as February 1, a move that could escalate trade tensions between the two nations. However, experts say Ottawa has the tools to respond almost immediately without waiting for parliamentary approval.
Typically, Canada follows a process that includes advance notice and consultation with industry stakeholders before imposing retaliatory tariffs, a procedure that can take about a month. But in this case, the federal cabinet has the authority to bypass these steps and issue an order for new tariffs within a day or two, according to trade experts.
The White House has doubled down on Trump’s threat to impose 25 per cent across-the-board tariffs on Canadian goods, a move that could have significant economic consequences for both countries. While it remains unclear how the Trump administration would implement these tariffs, options include invoking national security grounds for immediate action or pursuing a months-long regulatory process.
Canadian trade lawyers emphasize that Ottawa is well-positioned to respond quickly if the U.S. follows through on its threat. “The federal cabinet has the authority to impose retaliatory tariffs without recalling Parliament,” said one expert. “This means Canada could act within 24 to 48 hours of any U.S. action.”
The speed of Canada’s response would serve as a strong signal to the U.S. that Ottawa is prepared to defend its economic interests. Historically, Canada has not hesitated to retaliate against U.S. tariffs. For example, in 2018, the Canadian government imposed $16.6 billion in retaliatory tariffs on U.S. goods in response to Trump’s steel and aluminum tariffs.
While the specifics of Canada’s retaliatory measures would depend on the scope of the U.S. tariffs, experts suggest that Ottawa could target politically sensitive U.S. industries. Potential targets might include agricultural products, manufactured goods, and other exports from states critical to Trump’s political base.
The imposition of tariffs by either country would likely disrupt supply chains, increase costs for businesses and consumers, and strain the longstanding trade relationship between Canada and the U.S. Economists warn that a full-blown trade war could have far-reaching consequences for both economies, particularly in sectors like automotive manufacturing, agriculture, and energy.
While Canada is prepared to retaliate, experts caution that Ottawa must carefully balance its response to avoid escalating tensions further. “The goal is to send a clear message that Canada will not be pushed around, while also leaving room for dialogue and de-escalation,” said one trade lawyer.
As the February 1 deadline approaches, all eyes are on the Trump administration to see whether it will follow through on its tariff threat—and how Canada will respond if it d