Canada Vows 'Trump Tax' Retaliation as Trade Tensions Rise

Canada has issued a stern warning to the United States, promising a robust response to the incoming administration of President-elect Donald Trump if he follows through on his plan to impose 25% tariffs on Canadian imports. Canadian Foreign Minister Mélanie Joly announced on Friday that Ottawa is prepared to implement a "Trump tax" on American goods, signaling the potential escalation of a significant trade war between the two neighboring nations.

Speaking at a press conference in Washington, Joly characterized Trump’s proposed tariffs as an aggressive move that would severely harm both Canadian and American economies. "The Americans would be starting a trade war against us," Joly stated. "We are ready to put maximum pressure." Among the countermeasures being considered are increased duties on U.S. exports to Canada, including steel, ceramics, glassware, and orange juice—industries that could be targeted in a phased approach should the tariffs materialize.

Outgoing Prime Minister Justin Trudeau echoed Joly’s remarks, asserting that Canada will not back down in defending its economy. "The proposed tariffs would put American jobs at risk, raise prices for American consumers, and jeopardize our shared security and economic stability across the continent," Trudeau said. Experts warn that such a trade war could have dire consequences, with Scotiabank estimating a potential 5% contraction in Canada’s GDP, surging inflation, and widespread job losses.

The looming conflict underscores the fragile state of North American trade relations as Trump prepares to return to the White House. His broader economic strategy also targets key trade partners like Mexico and China, signaling a sharp departure from cooperative approaches to global commerce. With both nations bracing for economic turbulence, the stakes are high. Canada’s firm stance sends a clear message: it will not stand idly by as its economic stability and sovereignty are challenged.