In response to U.S. President Donald Trump's threat to impose 25% tariffs on Canadian goods, former finance minister Chrystia Freeland has called for the release of a 'retaliation list' targeting specific U.S. products. The proposed list, valued at $200 billion Canadian dollars, aims to demonstrate the potential impact of tariffs on American exporters.
Freeland emphasized the importance of strategic retaliation, suggesting a dollar-for-dollar response that would directly affect industries such as Florida orange growers, Wisconsin dairy farmers, and Michigan dishwasher manufacturers.
Canada's top export destination for 36 U.S. states, the country faces significant economic ties with its southern neighbor, with nearly $3.6 billion Canadian dollars worth of goods and services crossing the border daily.
While some experts advocate for retaliatory measures, caution is advised against publicly disclosing a list of targeted products in advance. Concerns about provoking Trump and complicating potential negotiations have been raised, given the president's desire to project strength in trade disputes.
If elected as prime minister, Freeland plans to restrict American companies from bidding on Canadian federal procurement, excluding defense contracts. Additionally, she aims to collaborate with international leaders to address challenges to sovereignty and economies.
Various proposals have been put forth, including the suggestion to halt energy shipments to the U.S., a move opposed by Alberta's premier. Former central banker Mark Carney has also suggested considering the option of cutting off Quebec's hydro exports in a trade confrontation with Trump.
Trudeau's impending resignation as prime minister and party leader, following Freeland's resignation as finance minister, has set the stage for a new Liberal Party leader to be chosen on March 9. With all three opposition parties planning a no-confidence vote after parliament resumes on March 24, an election is anticipated this spring.
