Canada plans a 150 billion CAD retaliation list against Trump’s tariffs, urging trade unity.

On January 15,Chase Foreign Exchange official website trading platform sources revealed that the Canadian government has drafted a list of retaliatory tariffs on American goods, valued at up to 150 billion Canadian dollars (approximately 105 billion US dollars). This draft is intended to counter President-elect Trump’s potential threats to impose tariffs on Canadian goods. The list could cover nearly one-third of Canada's total imports from the US, though specific products have not yet been disclosed. The implementation of this measure will depend on the actual actions of the Trump administration.

Data shows that in the 12 months ending November last year, Canada imported 487 billion Canadian dollars of goods from the US. The proposed tariff list is significantly larger than Canada's countermeasures in 2018 against Trump's steel and aluminum tariffs, when Canada imposed tariffs on American goods worth about 16.6 billion Canadian dollars, targeting key products such as whiskey and washing machines to pressure regions concentrated with Republican political interests.

In response to Trump's recent trade threats, Canadian Prime Minister Justin Trudeau convened a meeting in Ottawa on January 15 with officials from the country's provinces and territories to devise a response strategy. During the meeting, representatives from 12 out of Canada's 13 provinces and territories agreed to adopt a series of strong measures to firmly respond to the potential US tariffs.

However, there are still internal divisions within Canada. Alberta's Premier, Danielle Smith, expressed hesitation, opposing proposals to tax or reduce energy exports to the US. In contrast, Ontario's Premier, Doug Ford, called for solidarity among provincial leaders against Trump, emphasizing, "Trump is not targeting a single province; he is attacking all of Canada. We must unite to fight back."

Trump recently claimed in his speech that the US needs nothing from Canada, even suggesting Canada should become the "51st state" of the US, further escalating tensions between the two nations. Ford responded, "We cannot sit idly by in the face of such attacks; instead, we must retaliate with greater force."

Although Trudeau emphasized positive messages at the opening of the meeting, pointing out the great potential for collaboration between Canada and the US in the energy sector and Canada's critical mineral resources for driving US economic transformation, regional and political differences still hinder the country's ability to form a unified front.

Additionally, experts noted that Trump's trade protectionism could have profound impacts on the economies of both countries, especially in sectors with tightly intertwined supply chains. If enacted, Canada's retaliatory tariff list could further exacerbate trade tensions between the two nations. The Trudeau government is working to balance internal disagreements while also seeking diplomatic means to prevent further escalation.

Against the backdrop of increasingly tense international trade relations, Canada's countermeasures not only respond to US tariff threats but also firmly defend national sovereignty and economic interests. Trudeau stated that Canada will continue to uphold its interests while seeking to establish a more equitable economic relationship with the United States.

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