Days after Donald trumpโs inauguration as US President, Chrystia Freeland, the former finance minister who is running to replace Justin Trudeau as Canada’s prime minister, said that Canada needs to release a โretaliation listโ of goods the country would target if US President Donald Trump makes good on his threat to slap 25 per cent tariffs on Canadian goods.
A list of products worth 200 billion Canadian dollars (USD 139 billion) would send a message to US exporters about the harm tariffs would cause them, Freeland said in a statement.
โBeing smart means retaliating where it hurts,โ she said. โOur counterpunch must be dollar-for-dollar โ and it must be precisely and painfully targeted: Florida orange growers, Wisconsin dairy farmers, Michigan dishwasher manufacturers, and much more,โ she addec.
โNow is the moment when Canada must make clear to Americans the specific costs that will accompany any tariff measures by the Trump administration,โ she stated.
Trump has said he will use economic coercion to pressure Canada to become the nation’s 51st state.
He continues to erroneously cast the US trade deficit with Canada โ a natural resource-rich nation that provides the US with commodities like oil โ as a subsidy.
Canada is the top export destination for 36 US states. Nearly 3.6 billion Canadian (USD 2.7 billion) worth of goods and services cross the border each day.
John Ries, senior associate dean at the University of British Columbia Sauder School of Business, said Canada should retaliate against any tariffs but warned against publicising a list in advance, citing the risk of antagonising Trump โ and making it harder for him to back off on his threats.
Freeland said Monday that if she wins the leadership race and become prime minister she would also prohibit American companies from bidding on Canadian federal procurement (excluding defence).
She also said she would convene an international summit with the leaders of Mexico, Denmark, Panama, and the president of the European Union to โcoordinate a joint response to challenges to our sovereignty and our economies.โ
Some lawmakers have suggested Canada could stop energy shipments to the United States, a move opposed by Daniele Smith, the premier of Canada’s oil-rich province of Alberta.
Former central banker Mark Carney, who is also running for the Liberal leadership, said over the weekend that cutting off Quebec’s hydro exports to the US should remain an option on the table in a trade fight with Trump.
(With inputs from AP)