The Canadian government is gearing up to impose billions in retaliatory import duties on goods from the United States if President-elect Donald Trump acts on his threats of tariffs.
Justin Trudeau, the outgoing Prime Minister, indicated that the proposed backlash would impact the entirety of the U.S. and emphasized that “everything is on the table” during a meeting with provincial leaders in Ottawa on Wednesday.
Trump has made earlier claims about utilizing “economic force” and suggested imposing a 25 percent tariff on all Canadian imports, linking this to issues like the smuggling of fentanyl and the flow of illegal immigration at the U.S.-Canada border.
In previous statements, Trump has stated it would be a “fantastic idea” for Canada to join the United States as its 51st state, to which Trudeau responded that there is “not a snowball’s chance in hell” that this would take place.
A broad U.S. tariff on imports from Canada would severely impact Canada’s oil sector, which primarily sends its crude oil to the United States, according to government data.
This could also lead to a rise in energy costs for Americans.
Approximately 60 percent of the crude oil used in the U.S. is sourced from Canada, along with nearly all its natural gas, significant quantities of electricity imports, and uranium for nuclear facilities.
“[Tariffs] will lead to increased gas prices, higher food costs, and elevated natural gas prices for heating residential homes,” commented Canada’s Energy Minister Jonathan Wilkinson when addressing the Associated Press.
Reports suggest that among the items that would be affected in a potential Canadian countermeasure are orange juice, toilets, and steel products.
The selection of Florida’s iconic export appears to be a strategic choice, possibly aimed at resonating with Trump and appealing to voters in one of his home states.
Canada’s annual import of orange juice is about 360 tons, a mere fraction compared to the nearly three million tons produced by the U.S. each year.
Canada has previously enacted tariffs on yogurt sourced from Wisconsin and whiskey from Kentucky.
