What’s coming in Canada’s response plan to Donald Trump’s tariffs

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OTTAWA — Prime Minister Justin Trudeau has outlined Canada’s technique to retaliate in opposition to the US, as President Donald Trump strikes to hit the nation with 25 per cent tariffs on Tuesday.

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Trudeau stated Saturday evening that Canada will hit the U.S. with reciprocal 25 per cent tariffs in opposition to some $155 billion value of American items.

That response comes even because the Trump White Home threatens such retaliation would invite escalation.

Right here’s a take a look at among the playing cards Ottawa has placed on the desk within the coming battle with the nation’s most necessary buying and selling accomplice.

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RETALIATORY TARIFFS

Trudeau’s response plan consists of instant counter-tariffs on $30 billion value of products beginning on Feb. 4 — the identical day the U.S. tariffs kick in.

However Canada can even prepared a bigger follow-up volley of sweeping tariffs on $125 billion value of American merchandise in three weeks.

That’s designed to present time to Canadian firms to attempt to discover alternate options, because it’s extremely laborious to pivot provide chains at a second’s discover.

The gadgets Trudeau previewed on Saturday embody American beer, wine and bourbon, fruit, fruit juices and greens, together with retail gadgets corresponding to perfumes, clothes and sneakers.

Shopper merchandise corresponding to family home equipment, furnishings and sporting items and supplies corresponding to lumber and plastics can even be included.

The Trudeau authorities didn’t launch extra particulars Saturday when requested, however has beforehand floated metal and ceramics might make the shortlist. Ottawa is anticipated to launch a extra detailed listing as early as Sunday.

Canada is the highest export marketplace for 36 U.S. states, based on the workplace of Canada’s chief economist.

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BUY CANADIAN

Trudeau known as on Canadians to purchase home merchandise the place they’ll over American-origin merchandise they’re used to buying, and swap any U.S. trip plans with staycations or journey throughout Canada.

“Now can be the time to decide on Canada,” Trudeau stated. “There are various methods so that you can do your half. Which may imply checking the labels on the grocery store and choosing Canadian-made merchandise.”

He recommended deciding on Canadian rye over Kentucky bourbon and taking a go on Florida orange juice — an merchandise his authorities has repeatedly emphasised is politically necessary in a commerce battle with the U.S.

Trudeau pitched climbing and tenting in provincial parks, visiting historic websites and different vacationer locations throughout Canada — although didn’t point out any by identify.

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NON-TARIFF MEASURES

Trudeau stated Canada is in talks with the provinces and territories over additional motion.

That features whether or not to make non-tariff-related strikes over the export of vital minerals and vitality — gadgets excessive on the People’ listing of priorities — and alter authorities procurement choices away from U.S. firms.

He didn’t supply any substantive element about what precisely this would possibly entail.

This report by The Canadian Press was first revealed Feb.1, 2025.

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