Canada Prepares for Possible Retaliatory Tariffs Amid US Trade Tensions

Canada is contemplating retaliatory tariffs against the US as President-elect Trump threatens to impose a 25% tax on Canadian imports. Trump claims to have reached an agreement with Mexico to halt migration, but Canada remains prepared for potential trade conflicts, emphasizing cooperation and border security improvements.

In response to potential sweeping tariffs from President-elect Donald Trump, Canada is exploring possible retaliatory measures. A senior government official revealed these considerations as Trump signaled intentions to levy a 25% tax on goods from both Canada and Mexico if issues related to drug trafficking and migration are not addressed.

Nevertheless, Trump later announced on Truth Social that he had a positive dialogue with Mexico's President Claudia Sheinbaum, who purportedly agreed to curtail migration through Mexico. The concrete impact of this interaction on Trump's tariff plan, however, remains uncertain.

Despite these developments, Canadian officials reiterated their readiness to defend national economic interests by preparing a list of US goods for potential tariffs. Historical precedents show such retaliations, highlighting political motivations behind product selection, like imposing duties on imports from Wisconsin and Kentucky, targeting influential US political figures' home states.

(With inputs from agencies.)