Canadian officials are said to be preparing a list of American goods to be hit with retaliatory tariffs if the U.S. President-elect Donald Trump goes ahead with his threat to use “economic force” against Ottawa. According to CNN, the proposed items under consideration for tariffs include ceramics, steel, furniture, alcoholic beverages, orange juice, and pet food. In addition, Canada may also impose taxes on U.S. energy exports as a “last resort.”
Speaking about the potential trade conflict, Canada’s Foreign Minister Mélanie Joly stressed her readiness. “I think we have to be ready,” she stated. Insiders let it out that no decision at the point of finalizing the retaliatory measures has been made.
Canadian Asserts Its Trade Leverage
Joly indicated that Trump must carefully think over his threats as Canada has its “leverage” in negotiating a trade balance. She maintained a balanced position, reiterating that she stood for fighting to protect her economic interests for her country.
There was a stunning twist on Friday as Mélanie Joly announced that she would not pursue the leadership of the Liberal Party following Prime Minister Justin Trudeau’s resignation earlier in the week. In explaining this, Joly stated that her priority remains keeping Canadian interests safe amid the economic threats expected from the incoming U.S. administration.
“While I am confident in my ability to lead the Liberal Party and make history as its first female leader, the urgency of the unjustified tariff threats and other economic pressures from President-elect Trump demand my full attention,” Joly wrote in a letter shared on social media.
Economic Stakes Of Canada-US Trade Relations
This superpower is of great importance as it is considered the largest trading partner of the U.S. In 2023, Canada was the primary supplier of crude oil to Washington, with oil imports amounting to $419 billion.
Recent Canadian government statistics report a trade surplus with the U.S. which has increased due to recent activities. In November 2024, exports to the U.S. had gone up by 6.8% while imports rose by 4.1%. The end result here was a higher trade surplus of $8.2 billion as compared to $6.6 billion in October.
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