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�îɩP����� Canada Readies Measures To Respond to Tariff Threat �t�����|�¯� �[���j�Ƨ��ȼu�^��
How Labeling Cartels ��Terrorists�� Could Hurt the U.S. Economy �N������r���C�Ϯ��ؼ� ���ˬ���g��
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Canada Readies Measures To Respond to Tariff Threat �t�����|�¯� �[���j�Ƨ��ȼu�^��
���Matina Stevis-Gridneff
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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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How Labeling Cartels ��Terrorists�� Could Hurt the U.S. Economy �N������r���C�Ϯ��ؼ� ���ˬ���g��
���Maria Abi-Habib and Simon Ro
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President Donald Trump��s executive order designating Mexican cartels and other criminal organizations as foreign terrorists could force some American companies to forgo doing business in Mexico rather than risk U.S. sanctions, according to former government officials and analysts �X an outcome that could have a major effect on both countries given their deep economic interdependence.

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The executive order is intended to apply maximum pressure on Mexico to rein in its dangerous drug trade. The designation, more generally, also gives his administration more power to impose economic penalties and travel restrictions, and potentially even to take military action in foreign countries.

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Yet, disentangling cartel operations from U.S. interests in Mexico could be immensely complicated. Mexico is the United States�� largest trade partner of goods, and many American companies have manufacturing operations there.

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Even more complicated, these criminal networks have extended their operations far beyond drug trafficking and human smuggling. They are now embedded in a wide swath of the legal economy, from avocado farming to the country��s billion-dollar tourism industry, making it hard to be absolutely sure that American companies are isolated from cartel activities.

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��This has come up in previous administrations across the political spectrum and from members of Congress who have wanted to do it,�� said Samantha Sultoon, a senior adviser on sanctions policy and threat finance in the Trump and Biden administrations.

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��But no one has done it because they have looked at what the implications would be on trade, economic and financial relationships between Mexico and the United States,�� she added.��

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The foreign terrorist designation could lead to severe penalties �X including substantial fines, asset seizures and criminal charges �X on companies and individuals found to be paying ransom or extortion payments. U.S. companies could also be ensnared by standard payments made to Mexican companies that a cartel controls without the American companies�� knowledge.

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Cartels use the legal economy to launder money, which could mean that unwitting employees working at a resort or an avocado packing company could technically be on the cartel payroll but not know it.

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