According to a report from Caixin on November 28 (editor Huang Junzhi), a senior Canadian official said on Wednesday that if elected president Donald Trump follows through on his threat to impose comprehensive tariffs on canadian products, Canada is already studying the possibility of imposing retaliatory tariffs on certain products from the usa.

Recently, Trump threatened to impose a 25% tariff on all products entering the usa from Mexico and Canada on the first day of his taking office through executive order. Analysts state that these tariffs are aimed at forcing the targeted countries to make concessions on drug trafficking and illegal border crossings.

Positions of all parties

A canadian government official stated that Canada is preparing for every possible scenario and has begun to consider which commodities to impose tariffs on as retaliation. The official emphasized that no decisions have been made yet.

Historically, during Trump's first term, Canada had implemented retaliatory tariffs: Canada announced in 2018 new tariffs worth billions of dollars on the usa as a response to the usa's tariffs on Canadian steel and aluminum.

Canadian officials stated that it is unfair to categorize Canada with Mexico, but they expressed happiness to cooperate with the Trump administration to reduce the number of immigrants from Canada. Canadians are also concerned that if Trump implements a large-scale deportation plan, there could be a significant influx of immigrants into northern Canada.

Trump also criticized drugs like fentanyl from Mexico and Canada. Despite this, the quantity seized at the Canadian border is negligible compared to that at the Mexican border. In the last fiscal year, US customs officials seized 43 pounds of fentanyl at the Canadian border, while they seized 21,100 pounds at the Mexican border.

On Wednesday, Canadian Prime Minister Trudeau held an emergency virtual meeting with the leaders of Canadian provinces, who hope that Trudeau will negotiate a bilateral trade agreement with the USA that excludes Mexico.

Mexican President Sinbloom stated on Wednesday that her government is drafting a possible list of retaliatory tariffs, "if things come to that." However, she later mentioned that she had a pleasant conversation with Trump.

Sinbloom wrote on her social media account: "We discussed Mexico's strategy on immigration, and I told him that the caravans did not reach the northern border of the USA because Mexico is taking care of them. We also talked about enhancing cooperation on security issues within a sovereign framework and the campaign we are conducting to prevent fentanyl consumption."

The importance of Canada.

Canadian officials argue that their country is not the problem, and tariffs would significantly impact both nations.

Data shows that Canada is the top export destination for 36 states in the USA. Commodities and services worth 3.6 billion Canadian dollars (approximately 2.7 billion USD) cross the border daily. About 60% of US crude oil imports come from Canada, and 85% of US electric power imports come from Canada.

Additionally, Canada is the largest foreign supplier of steel, aluminum, and uranium to the USA, possessing 34 critical minerals and metals urgently needed for national security investment by the Pentagon.

Canadian Deputy Prime Minister Chrystia Freeland stated: "Canada is vital to the USA's domestic energy supply."

Editor/Lambor