TORONTO — Canada is already considering the possibility of imposing retaliatory tariffs on certain U.S. products should virtual President-elect Donald Trump follow through on his threat to impose widespread tariffs on Canadian goods, a senior official said Wednesday.
Trump has threatened to impose tariffs on products from Canada and Mexico if these nations do not stop what he describes as an influx of drugs and migrants across the southern and northern borders of the United States. He stated that among his first decrees he will impose a 25% tax on all products entering the United States from Canada and Mexico.
However, Trump posted Wednesday night on the social media platform Truth Social that he had a “wonderful conversation” with Mexico’s new president, Claudia Sheinbaum, and that she “has agreed to stop migration through Mexico.” .
“Mexico will detain people going to our southern border from this moment on. This will go a long way in curbing the illegal invasion of the United States. Thank you!” Trump posted.
It’s unclear what impact that conversation will have on Trump’s plans to impose tariffs.
In Canada, an official said the government is preparing for every eventuality and has begun thinking about which products would be subject to retaliatory tariffs. The official emphasized that no decision has been made. The person spoke on condition of anonymity because they were not authorized to discuss details publicly.
When Trump imposed higher tariffs during his first term, other countries responded with their own retaliatory tariffs. Canada, for example, announced billions of dollars in new levies against the United States in 2018 in response to new taxes on Canadian steel and aluminum.
Many of the American products were chosen for their political rather than economic impact. For example, Canada imports $3 million worth of yogurt from the United States annually, and most of it comes from a plant in Wisconsin, the home state of then-House Speaker Paul Ryan. That product was subject to a 10% tariff.
Another product on the list was whiskey, which is produced in Tennessee and Kentucky, the latter being the home state of then-Senate Republican leader Mitch McConnell.
Trump raised his threat Monday while complaining about an influx of migrants entering the United States illegally, even though numbers at the Canadian border pale in comparison to the southern border.
The US Border Patrol made 56,530 arrests along the border with Mexico in October alone, compared to 23,721 arrests along the border with Canada between October 2023 and September 2024.
Canadian officials said it is unfair to group Canada with Mexico, but said they are willing to make new investments in border security and work with the Trump administration to reduce numbers from Canada. Canadians are also concerned about a possible influx of migrants into their country if Trump goes ahead with his mass deportation plan.
Trump also complained about fentanyl coming from Mexico and Canada, even though seizures at the Canadian border are much smaller compared to those at the Mexican border. U.S. customs agents seized 19.5 kilograms (43 pounds) of fentanyl at the Canadian border during the last fiscal year, compared to 9,525 kilograms (21,100 pounds) at the Mexican border.
Canadian officials argue that their country is not the problem and that the tariffs will have serious implications for both nations.
Canada is the main export destination for products from 36 United States states. Nearly C$3.6 billion (US$2.7 billion) worth of goods and services cross the border every day. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports come from Canada. Canada is also the largest foreign supplier of steel, aluminum and uranium to the United States and has 34 critical minerals and metals that the Pentagon is eager to invest in for national security concerns.
Canadian Prime Minister Justin Trudeau held an emergency virtual meeting with the leaders of the country’s provinces on Wednesday. He stressed the need to present a united front.
“I don’t want to minimize the severity of the challenge we face,” said Deputy Prime Minister Chrystia Freeland. “Now is really a time when we can’t fight each other.”
Provincial leaders want Trudeau to negotiate a bilateral trade agreement with the United States that excludes Mexico.
For her part, the president of Mexico said hours before that her government is already preparing a list of possible retaliatory tariffs in case the situation requires it.
He later revealed that he had a good conversation with Trump.