Canada Vows ‘Trump Tax’ on US in Response to Tariffs: Minister

AFP | Canada
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Canada will impose a "Trump tariffs tax" on American goods if the incoming US president, Donald Trump, raises customs duties on Canadian products, according to Canadian Foreign Minister Melanie Joly.

Trump, who is set to return to the White House next week, has proposed a 25% tariff on Canadian imports as part of his economic and foreign policy plans, which also target Mexico, China, and other trade partners.

“This would be the biggest trade war between Canada and the US in decades,” Joly said. “The Americans would be starting a trade war against us.”

Outgoing Prime Minister Justin Trudeau expressed Canada’s determination to respond firmly, saying, “We will be strong and unequivocal in our defense of Canada and Canadians.”

He warned, “The proposed tariffs would put American jobs at risk, raise prices for American consumers, jeopardize our collective security, and increase costs across the continent.”

In a press conference in Washington, Joly added that Canada is prepared with a series of countermeasures, should Trump follow through on his threat. A government source revealed that Ottawa is considering imposing higher duties on US goods, including steel products, ceramics like toilets and sinks, glassware, and orange juice. These tariffs could be expanded in subsequent phases.

A scenario from Scotiabank suggests that a trade war could cause Canadian GDP to shrink by more than five percent, significantly raise unemployment, and fuel inflation.