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U.S. steel, plastics could be among Canada retaliatory tariff targets

Canada likely to sell Trump91裸聊视频檚 tariff threat as a 91裸聊视频榯ax on everyday Americans91裸聊视频
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President-elect Donald Trump, flanked by Sen. John Barrasso, R-Wyo., left, Sen. Shelley Moore Capito, R-W.Va., right, talks to reporters after a meeting with Republican leadership at the Capitol on Wednesday, Jan. 8, 2025, in Washington. THE CANADIAN PRESS/AP-Steve Helber

Canada is looking to target American steel, ceramics, plastics and orange juice with retaliatory tariffs in response to threats of hefty duties on Canadian imports by the incoming Trump administration.

A senior government official said Ottawa has made no decisions yet on retaliation, and is not prepared to share the full list of items under consideration.

The selective release of certain retaliation plans comes just a week and a half before incoming U.S. president Donald Trump91裸聊视频檚 inauguration, and a week before Trudeau and the premiers meet in Ottawa next Wednesday to discuss Canada91裸聊视频檚 response plan, which includes retaliatory tariffs.

Trump has threatened to impose 25 per cent across-the-board tariffs on imports from Canada and Mexico as one of his first orders of business when he is sworn in on Jan. 20.

Experts said it91裸聊视频檚 the right move for Canada to signal that it91裸聊视频檚 prepared for a fight, since the country would surely lose a wider trade war and risk escalation if Ottawa threatened similar across-the-board tariffs.

Laura Dawson, a trade expert and executive director of the Future Borders Coalition, said it91裸聊视频檚 a decision Ottawa no doubt made reluctantly because Canada has a lot of economic exposure and tariffs are ultimately paid for by consumers and importers.

91裸聊视频淏y leaking or sharing or hinting about what91裸聊视频檚 on the list, it91裸聊视频檚 trying to signal to the White House that Donald Trump91裸聊视频檚 tariffs will be costliest to Americans,91裸聊视频 she said.

CBC News first reported this week that a draft list was circulating among a small group of top officials in Prime Minister Justin Trudeau91裸聊视频檚 government, including by targeting Florida91裸聊视频檚 orange juice.

91裸聊视频淭he strategy that trade officials take when devising these retaliation lists is that you want to find products that are iconic, that will be recognizable,91裸聊视频 Dawson said. 91裸聊视频淭hat91裸聊视频檚 why they pick things like orange juice because it91裸聊视频檚 something that people can easily understand, and it91裸聊视频檚 something that91裸聊视频檚 localized to a region that Trump cares a great deal about, and that91裸聊视频檚 Florida voters.91裸聊视频

But she also said Canada can91裸聊视频檛 slap tariffs on items with such surgical precision, since it91裸聊视频檚 done by product categories. Ottawa can levy tariffs on orange juice, but not something so specific as only Minute Maid or orange juice from Florida without also hiking prices on juice made in California and other states.

Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, said floating targeted items is a better move than making a full-on blanket threat of across-the-board tariffs, which could invite escalation and kick off a trade war Canada can91裸聊视频檛 win.

91裸聊视频淵ou never want to get into a full competition with the U.S. Treasury,91裸聊视频 he said. 91裸聊视频淭he scope and scale of their market, their depth of internal trade is a very different economy than the one Canada has, which is premised largely on import/export trade. We91裸聊视频檙e not going to win if it91裸聊视频檚 a pure war of attrition.91裸聊视频

When asked to respond to Canada prepping its retaliatory tariff list, the Trump team said the tariffs are in the best interest of U.S. consumers.

91裸聊视频淧resident Trump has promised tariff policies that protect working Americans from the unfair practices of foreign companies and foreign markets,91裸聊视频 said Brian Hughes, a spokesperson for the Trump-Vance transition team. 91裸聊视频淎s he did in his first term, he will implement economic and trade policies to make life affordable and more prosperous for our nation, while simultaneously levelling the playing field for American manufacturers.91裸聊视频

Canada announced in December a $1.3-billion plan to beef up border security in response to Trump91裸聊视频檚 tariff threats, but that has not deterred Trump, who doubled down on his rhetoric this week.

Canada fought back against U.S. steel and aluminum tariffs during Trump91裸聊视频檚 first term by targeting specific American products like playing cards, ketchup and bourbon to put political pressure on Trump and key Republicans.

Holmes said Canada needs to sell Trump91裸聊视频檚 tariff threat as a 91裸聊视频渢ax on everyday Americans91裸聊视频 and target specific supply chains or states that will be critical to Trump in the midterm elections in two years time.

But the midterms, set for November 2026, also give Trump a long runway. The U.S. is still bearing some of the costs of tariffs from Trump91裸聊视频檚 first term, such as those levied on Chinese imports which President Joe Biden didn91裸聊视频檛 remove.

91裸聊视频淭hey can go deep, they can go long. It91裸聊视频檚 really how much the American consumer is willing to tolerate in terms of the affordability prices they91裸聊视频檙e facing because this will up costs,91裸聊视频 Holmes said.





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