The US President-elect has threatened to put a 25% tax on all imported Canadian goods
Canada is reportedly considering extensive tariffs on American products in response to US President-elect Donald Trump’s threats to impose hefty levies on all Canadian products entering the country, Bloomberg reported on Friday citing anonymous sources.
Trump has said he will impose sweeping tariffs on Canada, Mexico, and China as soon as he takes office, in an effort to spur them to crack down on illegal immigration and drugs. Specifically, he has vowed to introduce a 25% tax on all products entering the US from Canada and Mexico and an additional 10% tariff on goods from China.
Canadian officials are now reportedly considering their potential response to Trump’s threats, according to Bloomberg’s sources. While no final decision has been made, the measures under discussion are said to include targeting all US exports to Canada, aiming to go “dollar for dollar” on tariffs.
Bloomberg also reported that Canadian Prime Minister Justin Trudeau’s government has been examining the option of using export taxes on strategic commodities such as oil, uranium, and potash.
With Canada being the largest supplier of crude oil to the United States and a major global producer of uranium, essential for nuclear energy, such restrictions would put immediate pressure on US energy prices, according to the outlet.
Trump also recently suggested that he would be open to using “economic force” to coerce Canada into becoming part of the US as its “51st state.” Earlier this week, Trump even shared a map on social media showing Canada as American territory.
”You get rid of that artificially-drawn line and you take a look at what that looks like, and it would also be much better for national security,” Trump argued in a statement to reporters.
Canadian officials have vehemently rejected the idea of annexation by Washington, with Trudeau stating on X that “there isn’t a snowball’s chance in hell that Canada would become part of the United States.”
