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The Canadian government is preparing billions of dollars in retaliatory measures on U.S. exports to Canada if President-elect Donald Trump makes good on a threat to impose tariffs on Canadian goods, setting up a potential showdown between two countries that are each other��s largest trading partners.
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Canada is assembling a list of measures, including tariffs on U.S. exports to Canada and levies or other restrictions on key Canadian exports to the United States, if Trump imposes a sweeping 25% tariff on Canadian goods.
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But the government made clear that it will wait to see what Trump might do.
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��Everything is on the table,�� Prime Minister Justin Trudeau said during a news conference in Ottawa. Trudeau spent most of Wednesday discussing with provincial leaders how to best prepare for potential U.S. tariffs.
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Canada��s government is working under the assumption that Trump is serious about tariffs, which he has linked to the flow of migrants and drugs across the U.S.-Canada border.
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Canada has already announced a series of steps meant to beef up the border, including more personnel and technology. The government Wednesday said it was also deploying helicopters and more drones to bolster the surveillance of the shared border.
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But in more recent weeks Trump has made statements suggesting that his motivation for possible tariffs on Canadian goods may not be solely about border security. The president-elect has repeatedly spoken about Canada becoming another U.S. state, even threatening economic force to annex the country.
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Trump��s comments have been met with incredulity and outrage among Canadian political leaders.
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Any tariffs would violate a trade agreement among the United States, Mexico and Canada, originally known as NAFTA, which was renegotiated during Trump��s first presidency.
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Trudeau on Wednesday said that Canada was prepared meet any aggressive economic moves by the incoming Trump administration with equal aggression.��I support the principle of a dollar-for-dollar response,�� Trudeau said. Officials said that this could lead Canada to impose tariffs on goods exported to the United States.
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