(Bloomberg) — Canada has drawn up an initial list of C$150 billion ($105 billion) of US-manufactured items that it would hit with tariffs if President-elect Donald Trump decides to levy tariffs against Canadian goods, according to an official familiar with the matter.
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The list is a draft and would come into play only if the Trump administration moves first, the person said, speaking on condition they not be identified discussing the plans. More tariffs from Canada might be added later, depending on what the US does, the person said.
The products on that initial list weren’t disclosed. When Trump placed tariffs on Canadian steel and aluminum in 2018, Canada responded with levies on a variety of US-manufactured items, such as whiskey and washing machines — a pressure tactic that aimed to affect factories in areas where Republican politicians had influence. Those tariffs were much smaller in scope, affecting about C$16.6 billion of US exports at the time.
Canada imported C$487 billion of US goods in the 12 months to November, so the retaliatory tariffs would cover nearly a third of the value of the products the northern nation buys from its southern neighbor.
Prime Minister Justin Trudeau and the premiers of Canada’s provinces met in Ottawa on Wednesday to plot a strategy for dealing with US protectionism.
Premiers of 12 of Canada’s 13 provinces and territories agreed to a statement saying they will “work together on a full range of measures to ensure a robust response to possible US tariffs.” But Alberta Premier Danielle Smith balked, saying she couldn’t agree to two ideas that have been floated — placing export taxes on energy exports, or reducing those exports.
Ontario Premier Doug Ford — who manages the province that is the heartland of Canada’s auto industry — said the country’s political leaders will need to stand together in the face of Trump’s escalating threats. Last week, the president-elect mused about using “economic force” to eventually turn Canada into a US state.
“When Donald Trump comes at us, he’s not going to say, ‘Well, let’s not worry about Ontario, they’re good people, or Alberta.’ He’s coming full tilt at Canadians as a whole,’” Ford said. “And that’s one thing we have to understand. We need to be united.”