Canada is preparing for possible retaliatory tariffs on certain U.S. products if President-elect Donald Trump follows through on his threat to impose sweeping tariffs on Canadian goods. Trump has threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico. Canadian officials are already considering what items to target with tariffs in retaliation, though no decisions have been made. During Trump’s first term, other countries responded with retaliatory tariffs when the U.S. imposed higher tariffs.
Many U.S. products at risk of Canadian tariffs were chosen for their political significance, rather than economic factors. If Trump follows through with his plan for mass deportations, Canada is concerned about an influx of migrants from the U.S. In addition, Canada is the top export destination for 36 U.S. states, and the country plays a crucial role in the U.S. energy supply.
Justin Trudeau is holding an emergency virtual meeting with Canadian provincial leaders to discuss potential responses to Trump’s threats. Mexican President Claudia Sheinbaum has also indicated that Mexico is preparing a list of possible retaliatory tariffs. Both countries are concerned about the implications of tariffs on their economies, and tensions are rising as trade disputes escalate.
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