Canada is preparing to impose escalating retaliatory tariffs aimed at turning American public opinion against U.S. President Donald Trump’s planned 25% tariffs on Canadian goods—a move that is prompting Canada to reassess its economic reliance on its southern neighbor.
Targeted Tariffs to Pressure U.S. Exporters
“You will see, at least initially, that our response will focus on placing tariffs on American goods that are widely sold in Canada and for which Canadian consumers have readily available alternatives,” Natural Resources Minister Jonathan Wilkinson said in an interview Friday, just hours after Trump reaffirmed his intention to introduce tariffs on imports from Canada, Mexico, and China.
According to individuals familiar with the situation, Canadian officials were informed by U.S. counterparts on Saturday that the tariffs would take effect on Tuesday.
The strategy suggests that Canada’s first countermeasures will aim to minimize domestic economic harm while strategically hitting U.S. exporters in ways that generate political pressure on American lawmakers and, ultimately, Trump himself.
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While Canada hopes to avoid a trade war, Wilkinson made clear that if Trump moves forward with his tariffs, Canada’s response will escalate “stepwise,” with all options remaining on the table.
“That includes the possibility of export tariffs on key resources like energy and critical minerals,” he said, leaving open the prospect of measures that would raise the cost of oil, gas, and iron ore for U.S. consumers and industries.
Energy Tariffs: A Political Challenge
Wilkinson acknowledged that while the federal government will coordinate with regional leaders, Alberta’s conservative premier has already voiced opposition to export tariffs on crude oil—Canada’s single largest export to the U.S. Imposing such measures would be politically fraught, but remains a possibility as Canada weighs its next moves in the deepening trade standoff.
