The Blubber

If President-elect Donald Trump enforces his proposed tariffs on Canadian goods, Canada is ready to respond with equivalent measures, potentially targeting the energy sector, Canada’s Minister of International Trade, Mary Ng, said Thursday.

“Everything is on the table,” Ng stated during an appearance on CNBC’s Squawk on the Street. This could include matching tariffs dollar-for-dollar and possibly introducing an export tax on Canadian oil and gas shipped to the U.S.

“I don’t think Americans want us to stop selling electricity, oil, and gas to America. I’m here in New York, and the lights on Broadway—many of them are powered by Canadian electricity,” Ng noted. She warned that U.S. tariffs on Canadian goods would likely drive up costs for American consumers.

Trump has proposed a blanket 25% tariff on Canadian exports, a policy that mirrors threats made against Mexico and could extend to additional tariffs on Chinese imports. Canada was the largest buyer of American goods in 2022 and ranked as the third-largest exporter of goods to the U.S., highlighting the deep economic ties between the two nations.

In preparation, Canada is drafting a list of U.S. exports that could face retaliatory tariffs if trade tensions escalate. “Everything is going to be on the table,” Ng emphasized, signaling Ottawa’s firm stance.

Ng also pointed out how tariffs could affect everyday goods, such as items in supermarkets. “If you’re paying $4 for something today, you might pay $5 tomorrow,” she said, hinting at the economic consequences of a potential trade war.

Ottawa is simultaneously ramping up trade engagement with other global partners, including Japan and the European Union. “I’ve always had a mandate to diversify,” Ng explained, stressing the importance of exploring global trade opportunities beyond the U.S.

This is not the first instance of trade friction between Trump and Canada. During his first term, Trump imposed tariffs on Canadian steel and aluminum, prompting Ottawa to retaliate with tariffs on U.S. goods like beef, ketchup, and chocolate. Trudeau’s government strategically targeted exports from politically influential U.S. regions to amplify the pressure on American lawmakers and the Trump administration to resolve disputes.