News Brief

As Trump Proposes Sweeping Tariffs, Here's How Canada Plans To Retaliate

Kuldeep NegiDec 12, 2024, 12:19 PM | Updated 12:19 PM IST
 US President-elect Donald Trump

US President-elect Donald Trump


The premier of Canada's most populous province on Wednesday (11 December) said he will cut off energy to the United States if President-elect Donald Trump enforces a 25 per cent tariff on Canadian products.

Trump has proposed the tariffs as a measure to curb the movement of migrants and drugs from Canada and Mexico into the US.

"We're going to put our list together, and I'm sure the other provinces will as well. But we will go to the full extent, depending on how far this goes. We will go to the extent of cutting off their energy," Ontario Premier Doug Ford said after meeting with Canadian Prime Minister Justin Trudeau and other provincial premiers.

While he expressed reluctance to take such drastic action, Ford acknowledged doubts about avoiding the Trump tariffs.

"This fight is 100 per cent coming on 20 January or 21 January," he said, referencing to the date of Trump's inauguration.

"We will use every tool in our toolbox to fight back. We can't sit back and roll over. We just won't as a country. And isn't this a shame, our closest friends and allies," he added.

Canada accounts for approximately 60 per cent of US crude oil imports and 85 per cent of its electricity imports, highlighting the deep energy trade ties between the two nations.

Ford’s comments did not clarify whether all Canadian provinces or just Ontario might halt energy exports to the US.

However, his spokesperson, Grace Lee, confirmed that the issue was discussed during the call with Trudeau and provincial leaders.

"Premier Ford can only speak on behalf of Ontario, but its an area of provincial jurisdiction that we would certainly look at," Lee said in an email.


Canada is also the US' largest foreign supplier of steel, aluminum, and uranium. It also exports 34 critical minerals and metals that are vital to US national security and Pentagon investments.

"Canada, of course, will respond to unjustified tariffs," Deputy Prime Minister Chrystia Freeland said after the meeting.

Freeland noted that several provincial premiers supported a strong response to the tariffs, which could include halting exports of critical minerals to the US.

While Freeland refrained from explicitly mentioning oil, she stated that "obviously other ideas were discussed as well" when asked about cutting off oil exports to the US.

Energy constitutes approximately one-third of Canada’s trade with the US.

Daily trade between Canada and the US totals $3.6 billion Canadian dollar (US $2.7 billion), with Canada being the top export destination for 36 US states.

To address Trump’s concerns, Canada has committed to increased border security, including deploying additional police officers, drones, and sniffer dogs, according to Ford.

Ford observed that Trump’s approach this time is notably more aggressive, describing him as "a different type of cat to say the least."

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