Close X
Friday, January 10, 2025
ADVT 
National

U.S. steel, plastics among items Canada may target with retaliatory tariffs

Darpan News Desk The Canadian Press, 09 Jan, 2025 03:20 PM
  • U.S. steel, plastics among items Canada may target with retaliatory tariffs

Canada is looking to target American steel, ceramics, plastics and orange juice with retaliatory tariffs in response to threats of hefty duties on Canadian imports by the incoming Trump administration.

A senior government official said Ottawa has made no decisions yet on retaliation, and is not prepared to share the full list of items under consideration.

The selective release of certain retaliation plans comes just a week and a half before incoming U.S. president Donald Trump's inauguration, and a week before Trudeau and the premiers meet in Ottawa next Wednesday to discuss Canada's response plan, which includes retaliatory tariffs.

Trump has threatened to impose 25 per cent across-the-board tariffs on imports from Canada and Mexico as one of his first orders of business when he is sworn in on Jan. 20.

Experts said it's the right move for Canada to signal that it's prepared for a fight, since the country would surely lose a wider trade war and risk escalation if Ottawa threatened similar across-the-board tariffs.

Laura Dawson, a trade expert and executive director of the Future Borders Coalition, said it's a decision Ottawa no doubt made reluctantly because Canada has a lot of economic exposure and tariffs are ultimately paid for by consumers and importers.

"By leaking or sharing or hinting about what's on the list, it's trying to signal to the White House that Donald Trump's tariffs will be costliest to Americans," she said.

CBC News first reported this week that a draft list was circulating among a small group of top officials in Prime Minister Justin Trudeau's government, including by targeting Florida's orange juice.

"The strategy that trade officials take when devising these retaliation lists is that you want to find products that are iconic, that will be recognizable," Dawson said. "That's why they pick things like orange juice because it's something that people can easily understand, and it's something that's localized to a region that Trump cares a great deal about, and that's Florida voters."

But she also said Canada can't slap tariffs on items with such surgical precision, since it's done by product categories. Ottawa can levy tariffs on orange juice, but not something so specific as only Minute Maid or orange juice from Florida without also hiking prices on juice made in California and other states.

Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, said floating targeted items is a better move than making a full-on blanket threat of across-the-board tariffs, which could invite escalation and kick off a trade war Canada can't win.

"You never want to get into a full competition with the U.S. Treasury," he said. "The scope and scale of their market, their depth of internal trade is a very different economy than the one Canada has, which is premised largely on import/export trade. We're not going to win if it's a pure war of attrition."

When asked to respond to Canada prepping its retaliatory tariff list, the Trump team said the tariffs are in the best interest of U.S. consumers.

“President Trump has promised tariff policies that protect working Americans from the unfair practices of foreign companies and foreign markets," said Brian Hughes, a spokesperson for the Trump-Vance transition team. "As he did in his first term, he will implement economic and trade policies to make life affordable and more prosperous for our nation, while simultaneously levelling the playing field for American manufacturers.”

Canada announced in December a $1.3-billion plan to beef up border security in response to Trump's tariff threats, but that has not deterred Trump, who doubled down on his rhetoric this week.

Canada fought back against U.S. steel and aluminum tariffs during Trump's first term by targeting specific American products like playing cards, ketchup and bourbon to put political pressure on Trump and key Republicans.

Holmes said Canada needs to sell Trump's tariff threat as a "tax on everyday Americans" and target specific supply chains or states that will be critical to Trump in the midterm elections in two years time.

But the midterms, set for November 2026, also give Trump a long runway. The U.S. is still bearing some of the costs of tariffs from Trump's first term, such as those levied on Chinese imports which President Joe Biden didn't remove.

"They can go deep, they can go long. It's really how much the American consumer is willing to tolerate in terms of the affordability prices they're facing because this will up costs," Holmes said.

MORE National ARTICLES

Rogers activates new cellular towers on B.C.'s Highway of Tears to boost 911 access

Rogers activates new cellular towers on B.C.'s Highway of Tears to boost 911 access
Rogers says in a statement that the new cellular towers along Highway 16 in northern B.C. will cover 166 kilometres where wireless service gaps previously existed. The company says that when the final two out of 11 towers are erected, the new wireless coverage will "ensure continuous coverage" on the entire 720-kilometre stretch of highway from Prince George to Prince Rupert.

Rogers activates new cellular towers on B.C.'s Highway of Tears to boost 911 access

Federal government plans to extend deadline for charitable donation tax deductions

Federal government plans to extend deadline for charitable donation tax deductions
The federal government plans to extend the deadline for claiming charitable donations on tax returns through to the end of February. The announcement from Finance Minister Dominic LeBlanc comes nearly a week after the premiers called on Justin Trudeau's government to make the move.

Federal government plans to extend deadline for charitable donation tax deductions

Police issue alert for armed suspect in Calgary killings of woman and her father

Police issue alert for armed suspect in Calgary killings of woman and her father
Police issued an emergency alert Monday in the search for an armed and dangerous suspect in a double homicide in Calgary. Insp. Lee Wayne with the major crimes unit said 38-year-old Benedict Kaminski was wanted in the killings. He urged residents to be vigilant and not open their doors to strangers.

Police issue alert for armed suspect in Calgary killings of woman and her father

'We have no back road': Panic in tiny Kootenay towns as B.C. ferry strike escalates

'We have no back road': Panic in tiny Kootenay towns as B.C. ferry strike escalates
The West Kootenay communities of Harrop, Procter and Glade could see their cable ferry service reduced after a B.C. Labour Relations Board ruling permitted expansion of a strike that has already limited sailings on the major Kootenay Lake routes.

'We have no back road': Panic in tiny Kootenay towns as B.C. ferry strike escalates

India alleges widespread trafficking of international students through Canada to U.S.

India alleges widespread trafficking of international students through Canada to U.S.
Indian law enforcement agencies say they are investigating alleged links between dozens of colleges in Canada and two "entities" in Mumbai accused of illegally ferrying students across the Canada-United States border.

India alleges widespread trafficking of international students through Canada to U.S.

What Canada can learn from Trump's campaign

What Canada can learn from Trump's campaign
Trump has not yet moved into the White House but his victory sent shockwaves around the world. Not even a month after the election, Trump brought back "Twitter diplomacy," posting on social media threats of devastating 25 per cent tariffs on Canada and Mexico.

What Canada can learn from Trump's campaign