David Ljunggren and Promit Mukherjee
OTTAWA (Reuters) – Canada could impose countermeasures on up to C$150 billion ($105 billion) worth of U.S. imports if President-elect Donald Trump imposes tariffs on Canadian goods and services, a source familiar with the matter said on Wednesday.
Canada has drawn up a list of targets but will hold public consultations before acting, the source said, adding that the extent of any possible response will depend on what Trump does.
The Toronto Star first reported on the proposed countermeasures.
Prime Minister Justin Trudeau earlier met with the premiers of 10 Canadian provinces to discuss how to respond to any US tariffs and a list of tariff targets, said the source, who spoke on condition of anonymity because they were not authorized to speak to the media.
Trump says he wants to impose the 25 percent tariff to encourage Canada to tighten border security to stem the flow of illegal migrants and reduce fentanyl smuggling, a move that would appear to violate a free trade agreement.
Such a move would be paralyzing, given that Canada sends 75% of all exports of goods and services to the United States.
The source said that the proposed countermeasures will be divided into three groups. If Trump follows through on his threat, Canada would immediately target a small group of goods, including orange juice from Florida, where he lives.
“Nothing can be ruled out if the US continues to pursue these punitive tariffs,” Trudeau said after meeting with prime ministers.
Trudeau said any resistance would be strong and forceful, but declined to provide specifics because it was not yet clear exactly what Trump would do.
“I support the principle of dollar-for-dollar proportional response,” he said.
Earlier Wednesday, federal Immigration Minister Marc Miller said the flow of migrants and drugs coming from Canada is small compared to the amount entering the United States from Mexico.
Although Trudeau and the premiers in the room said the two levels of government were united, the energy-producing province of Alberta did not sign the final joint declaration released at the end of the meeting.
Alberta Premier Danielle Smith, who joined the meeting, said she opposes the idea of limiting Canadian oil exports, an option that federal officials have floated as an option that would raise U.S. gasoline prices.
The final declaration says that if Ottawa imposes retaliatory measures, it will quickly provide money to Canadian workers and businesses to help offset the damage caused by Trump’s tariffs.
Trudeau announced this month that he would step down after falling out with former finance minister Chrystia Freeland, who resigned over opposition to his spending proposals. She said Canada must maintain financial reserves to help cushion the impact of US tariffs.
Trudeau told reporters he will not run again in the next election, which must be held by October 20.
($1 = 1.4330 Canadian dollars)
