Canada Brace Up For Trade War With U.S.
Canada is preparing to retaliate with an exhaustive list of tariffs on American goods if President-elect Donald Trump follows through with his plans to add a steep 25% import tax on Canadian goods.
The preparations show how raising tariffs could kick off a trade war that will ultimately raise prices on several consumer goods around the world.
Canadian officials are working on a list of dozens of American products that the United States exports to Canada, targeting items that both send a political message and inflict a reasonable amount of economic damage, two sources said.
Included in the list of items considered for tariffs are ceramic products, steel products, furniture, certain alcoholic beverages like Bourbon and Jack Daniels whiskey, orange juice and pet food, among other goods, the people familiar with the plans told CNN. American energy exports are also on the list, and – as a last resort – Canada could levy a tax on the energy products Canada exports to the United States.
But the sources cautioned that nothing has been decided yet, and the list could ultimately change or not be imposed at all.
The tariffs could deal a blow to Canadian businesses, which are preparing for a trade war with the United States, according to Goldy Hyder, CEO of the Business Council of Canada.
