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WASHINGTON \u2014 Ottawa is ready to retaliate if U.S. president-elect Donald Trump slaps Canada with devastating tariffs, Prime Minister Justin Trudeau promised Friday \u2014 and his ministers say Republicans in Washington don\u2019t fully understand the likely impact of the duties on both countries\u2019 economies.<\/p>\n
\u201cWe will not hesitate to act,\u201d Trudeau said at a meeting of the newly formed Council on Canada-U.S. Relations in Toronto. \u201cWe will respond and, I will say it again, everything is on the table.\u201d<\/p>\n
The incoming president has promised to apply 25 per cent across-the-board tariffs on imports from Canada when he returns to the White House on Monday.<\/p>\n
Canada has multiple options for retaliatory tariffs ready to go depending on what Trump ultimately does, said two federal government sources with knowledge of the tariff response plan. They were not authorized to speak publicly about details of the plan.<\/p>\n
If Trump sets the tariffs at 25 per cent, Canada\u2019s response would be to impose counter-tariffs worth roughly $37 billion, and possibly follow up with another $110 billion in tariffs. If the duties are lower, Canada\u2019s tariff response would be more modest.<\/p>\n
No decision will be made until Ottawa sees the wording of Trump\u2019s executive order imposing the tariffs.<\/p>\n
Energy and Natural Resources Minister Jonathan Wilkinson, who was in Washington this week, said Thursday that Trump\u2019s tariff plan isn\u2019t even clear to Republican senators and congresspeople.<\/p>\n
Wilkinson said he\u2019s heard of three tariff options being considered: 25 per cent tariffs, 10 per cent tariffs and a lower duty that ratchets up over time.<\/p>\n
There\u2019s been disagreement among the premiers on how Canada should respond if Trump follows through on his threats. Most premiers presented a united front following a meeting with Trudeau in Ottawa earlier this week.<\/p>\n
Alberta Premier Danielle Smith broke from the pack by refusing to consider possible levies on oil exports.<\/p>\n
Former finance minister Chrystia Freeland, who confirmed her intention to run for Liberal leadership on Friday, has suggested a dollar-for-dollar tariff response. Trudeau has said he supports the principle of a proportional dollar-for-dollar response.<\/p>\n
While Canada has been planning its tariff response for weeks, Republicans only recently returned to Capitol Hill, said Foreign Affairs Minister M\u00e9lanie Joly, who is in Washington this week for her own meetings with Republican legislators.<\/p>\n
Joly said she still hopes duties can be avoided by making the case that tariffs would damage both the Canadian and American economies.<\/p>\n
Joly met Thursday with Republican Senate Majority Leader John Thune, as well as Republicans Lindsey Graham and James Risch, chairman of the U.S. Senate Foreign Relations Committee.<\/p>\n
\u201cWhen I talk about the tariffs themselves and their impact, people in Washington are surprised,\u201d Joly told reporters Friday. \u201cAnd when I mention the impacts of a Trump tariff tax on Americans, they are not only surprised, they are very worried.\u201d<\/p>\n
Goods worth $3.6 billion cross the Canada-U. S. border every day. A Canadian Chamber of Commerce analysis said 25 per cent tariffs could shrink Canada\u2019s gross domestic product by 2.6 per cent and America\u2019s by 1.6 per cent. It would also disrupt the automotive, agriculture and energy sectors, among others.<\/p>\n
\u201cAmericans are just waking up to this possibility,\u201d Joly said.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n