Canada prepares for economic showdown: Retaliatory tariffs loom as Trump threatens 25% tax on all Canadian imports

World News: The escalating tension between Canada and the United States over trade policies has prompted Canada to devise a comprehensive three-stage retaliatory tariff plan. This strategy is a direct response to President-elect Donald Trump's threat to impose a sweeping 25 percent tariff on all Canadian imports.

Trump has indicated that he will initiate these tariffs on his first day in office, potentially impacting consumer goods valued at approximately 37 billion Canadian dollars (around $25.6 billion) according to reports from the New York Times. In light of this, Canada has signaled its readiness to implement what has been dubbed the "Trump tax" on U.S. goods if necessary.

Canada's Preparedness for Trade Retaliation

Canadian Foreign Minister Mélanie Joly has stated, "We are ready to put maximum pressure," emphasizing that this could lead to the "biggest trade war between Canada and the U.S. in decades." Prime Minister Justin Trudeau echoed this sentiment, asserting that the country is prepared for a "strong and unequivocal" response, declaring that "nothing is off the table."

Targeting American Goods

The proposed retaliatory measures could encompass tariffs on a variety of American products, including steel, glassware, orange juice from Florida, whiskey from Tennessee, and peanut butter from Kentucky. Notably, Canada aims to specifically target goods produced in Republican states or swing states, with the intention of pressuring local jobs and encouraging political figures to advocate for de-escalation with Trump.

Joly recently met with several Republican senators in Washington, including Lindsey Graham from South Carolina and Jim Risch from Idaho. During her discussions, she emphasized the importance of presenting factual information before any threats of counter-tariffs. "My job here is to be able to talk about facts," Joly remarked in an interview with The Times on Thursday.

A Call for Caution

"Never underestimate Canadians," Joly asserted, highlighting their determination and strategic approach. She emphasized that Canada is prepared to act in a precise manner to influence American jobs effectively.