Canada is considering imposing retaliatory tariffs on American orange juice, toilets, and certain steel products if U.S. President-elect Donald Trump proceeds with his plan to enforce 25% tariffs on all Canadian goods, a senior official revealed Thursday. The official, who spoke on the condition of anonymity as they were not authorized to discuss the matter publicly, stated that the specific items to be targeted have not yet been finalized.
Trump recently announced his intention to use economic pressure to compel Canada to become the 51st state of the United States. Despite Canada being a significant supplier of natural resources such as oil, Trump has repeatedly mischaracterized the trade balance between the two countries as a form of subsidy.
In response to previous tariff increases by Trump, various countries implemented retaliatory measures against the U.S. In 2018, Canada imposed billions of dollars in duties on American steel and aluminum products in a retaliatory move. Certain American goods, including yogurt from Wisconsin and whiskey from Kentucky, were subjected to 10% tariffs that year.
The interconnected nature of the auto industry supply chain, with parts being manufactured in Ontario, used in cars assembled in Detroit, and sold back to Canada, highlights the deep economic ties between the two countries. Ontario Premier Doug Ford emphasized the mutual dependence on each other’s products and warned of retaliatory actions from Canada if Trump follows through with tariff threats.
Canadian officials have expressed disappointment and concern over Trump’s recent remarks suggesting Canada should become a U.S. state. They view these comments as an attempt to sow confusion and create chaos rather than a serious proposal. Discussions are ongoing between Canadian and U.S. government officials to address border security concerns and mitigate the potential impact of tariffs on bilateral trade.
Canada is the largest export market for 36 U.S. states, with billions of dollars’ worth of goods crossing the border daily. The strained relations between the two countries have raised alarms among Canadian officials, who stress the importance of maintaining a strong partnership based on mutual respect and cooperation.
If Canada and Mexico do not significantly reduce the influx of migrants and fentanyl crossing the U.S. border, it could pose a serious challenge. Despite the fact that a significantly lower number of migrants and illicit substances enter the U.S. from Canada compared to Mexico, the issue remains a point of concern.
In terms of immigration statistics, the U.S. Border Patrol revealed that there were 1.53 million encounters with irregular migrants along the southwest border with Mexico between October 2023 and September 2024. In stark contrast, only 23,721 encounters were reported at the Canadian border during the same period.
Former President Trump expressed strong criticism regarding the flow of fentanyl from both Mexico and Canada, highlighting the threats posed by these substances. However, it is worth noting that the amount of fentanyl seized at the Canadian border is significantly lower when compared to the quantities intercepted at the Mexican border. U.S. customs agents confiscated 43 pounds of fentanyl at the Canadian border in the last fiscal year, while a staggering 21,100 pounds were seized at the Mexican border during the same period.
