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Canada to levy retaliatory tariffs on US-made goods in response to Trump’s tax threat

Ottawa is trying to carefully select American goods in a manner that minimizes, where possible, the impact on Canadian consumers but maximizes political pain for US decision-makers, the newspaper wrote

OTTAWA, January 9. /TASS/. Canada is looking at levying retaliatory tariffs on a wide range of American-made goods as part of a targeted response should US President-elect Donald Trump proceed with a threat to impose a 25-per-cent tax on all products from Canada, The Globe and Mail newspaper reported citing a senior government source.

Canada’s authorities are planning to impose tariffs on orange juice, ceramics such as toilets and sinks, and some steel products imported from the US, the source said, adding that the list of retaliatory targets is still being developed and is not finalized. Other possible targets for retaliatory tariffs include American glassware, flowers and certain plastics, he noted.

Ottawa is trying to carefully select American goods in a manner that minimizes, where possible, the impact on Canadian consumers but maximizes political pain for US decision-makers, the newspaper wrote. Orange juice, for instance, is largely produced in Florida, Trump’s adopted home state, as well as home to numerous Republican congressional members.

The US, Mexico and Canada are tied into a trilateral agreement, which stipulates the creation of a free trade zone between those countries. However, on November 25, Trump threatened to impose a 25% tax on imports from Canada and Mexico over flows of illegal immigrants and drugs.