The Canadian government is preparing to announce a comprehensive retaliatory plan next Monday, in case former President Donald Trump follows through on his threat to impose tariffs on Canadian goods. This plan aims to protect the Canadian economy from the potential repercussions of Trump's proposed aggressive trade policies, which could harm the strong trade relations between the two countries.

Background

Trump's threat to impose tariffs of up to 25% on Canadian imports comes amid his speeches focused on boosting the American economy and addressing what he describes as trade imbalances. Trump has claimed that the tariffs are necessary to curb illegal flows of drugs and weapons across the US-Canada border, a claim that Canada has vehemently rejected.

Expected Canadian Actions

According to informed sources, Canada plans to take the following steps in response to the American tariffs:

1. Impose counter-tariffs: Targeting American goods exported to Canada, worth up to billions of dollars.

2. Review bilateral agreements: The Canadian government will review all bilateral trade agreements with the United States to ensure the protection of national interests.

3. Legal actions: Canada may resort to the World Trade Organization or trade arbitration bodies to challenge any unilaterally imposed tariffs.

4. Public consultations: The Canadian government announced it will open consultations with affected industrial sectors to identify American goods targeted by retaliatory tariffs.

Statements from Canadian Officials

• Justin Trudeau, Prime Minister of Canada: Emphasized that Canada will not hesitate to take firm action if its economy is threatened. He noted that "the relationship between Canada and the United States is the foundation of economic cooperation, but we cannot accept unfair trade policies."

• Chrystia Freeland, Minister of Finance: Described Trump's threats as an attempt to destabilize the Canadian economy, affirming that Canada is ready to cooperate but will not back down from defending its interests.

Importance of Economic Relations between the Two Countries

Canada and the United States are each other's largest trading partners, with trade between them valued at about $3.6 billion daily. This trade includes essential goods such as cars, raw materials, and agricultural products.

Local and International Reactions

• Locally: Canadian industrial companies welcomed the government's plans to respond, viewing it as a necessary step to protect jobs and the local economy.

• Internationally: Some European countries expressed their support for Canada, noting that Trump's trade policies could harm the global trading system.

Expected Challenges

Canada is expected to face challenges in implementing its retaliatory strategies, especially with the possibility of escalating trade tensions to higher levels. However, the Canadian government believes that a strong response is necessary to maintain its economic sovereignty and international reputation.

Next Monday will be a crucial moment in determining the course of trade relations between Canada and the United States, amid expectations that any escalatory actions will lead to political and economic tensions between the two neighbors.