Canada prepares retaliation if Trump raises tariffs

CNN reported that Canada is preparing retaliatory tariffs against the United States in response to a possible trade war when US President-elect Donald Trump takes office.

CNN cited two sources familiar with the matter as saying that Canadian officials are reviewing dozens of US goods exported to Canada to consider raising tariffs, both sending a political message and having a moderate economic impact.

Products that could be subject to additional tariffs include ceramics, steel products, furniture, some wines, and the energy sector, which is also on the list and is seen as a last resort in Ottawa’s tariff plan.

US President-elect Donald Trump (right) meets Canadian Prime Minister Justin Trudeau at the White House in 2017

“I think we have to be ready. When Mr. Trump speaks, we need to take his statements seriously. At the same time, we need to let him and his advisers know that there will be consequences if we impose tariffs on Canada,” Canadian Foreign Minister Melanie Joly said at a press conference on January 10.

Mr Trump has pledged to impose a 25% tariff on Canadian imports unless Ottawa tackles the problem of cross-border drug trafficking. Mr Trump has also controversially suggested that Canada should become a US state to avoid tariffs.

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The statement from Canadian officials on January 10 partly shows that the country is ready to enter a trade war with its neighbor the United States, which is warned will cause damage to the business activities of enterprises of both countries. Mr. Goldy Hyder, CEO of the Canadian Business Council, said that the business community in this country has many opinions on how to react to Mr. Trump's move, adding that they have been preparing for more than a year for the scenario of Mr. Trump becoming president, but will need to evaluate each specific strategy when the US president-elect sets out clear policies.

At a press conference on January 7, Mr. Trump did not rule out the possibility of using economic power to force Canada to import into the US and said that the US "does not need anything" produced in Canada.

Source: https://thanhnien.vn/canada-chuan-bi-don-tra-dua-neu-ong-trump-tang-thue-185250111121221207.htm