(Bloomberg) -- Canada has drawn up an initial list of C$150 billion ($105 billion) of US-manufactured items that it would hit with tariffs if President-elect Donald Trump decides to levy tariffs against Canadian goods, according to an official familiar with the matter.
The list is a draft and would come into play only if the Trump administration moves first, the person said, speaking on condition they not be identified discussing the plans. More tariffs from Canada might be added later, depending on what the US does, the person said.
The products on that initial list weren’t disclosed. When Trump placed tariffs on Canadian steel and aluminum in 2018, Canada responded with levies on a variety of US-manufactured items, such as whiskey and washing machines — a pressure tactic that aimed to put the squeeze on factories in areas where Republican politicians had influence. Those tariffs were much smaller in scope, affecting about C$16.6 billion of US exports at the time.
Canada imported C$487 billion of US goods in the 12 months to November, so the retaliatory tariffs would cover nearly a third of the value of the products the northern nation buys from its southern neighbor.
Prime Minister Justin Trudeau and the premiers of Canada’s provinces met in Ottawa on Wednesday to plot a strategy for dealing with US protectionism.
Premiers of 12 of Canada’s 13 provinces and territories agreed to a statement saying they will “work together on a full range of measures to ensure a robust response to possible US tariffs.” But Alberta Premier Danielle Smith balked, saying she couldn’t agree to two ideas that have been floated — taxing or reducing energy exports.
Ontario Premier Doug Ford — who manages the province that is the heartland of Canada’s auto industry — said the country’s political leaders will need to stand together in the face of Trump’s escalating threats. Last week, the president-elect mused about using “economic force” to eventually turn Canada into a US state.
“When Donald Trump comes at us, he’s not going to say, ‘Well, let’s not worry about Ontario, they’re good people, or Alberta.’ He’s coming full tilt at Canadians as a whole,’” Ford said. “And that’s one thing we have to understand. We need to be united.”
In his opening remarks at the meeting, Trudeau stressed a positive message, saying that Canada and the US have opportunities to build “partnerships” on energy. Canada has the critical minerals needed to fuel the transformation of the US economy, the prime minister said.
“If they don’t get them from Canada, they’ll get them from China,” Trudeau said.
Still, regional and political divisions within Canada are proving an obstacle to the country’s ability to present a united front. Alberta’s Smith — a conservative who has fought Trudeau and his Liberals on a broad range of issues — said she’d take whatever action is needed to protect her province from “destructive federal policies” such as curtailing or placing tariffs on energy supplies to the US.
From Bloomberg Economics: Canada Has No Good Options in Tariff Fight With US
“Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs,” Smith said in a statement. “Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products.”
Alberta provides most of Canada’s roughly 4 million barrels of daily oil exports to the US. Those shipments account for more than half of US crude imports.
Meanwhile, Ontario’s Ford arrived at the meeting wearing a blue hat emblazoned with the words “Canada Is Not For Sale” and said he was a “strong believer” in retaliatory tariffs.
“You can’t let someone hit you over the head with a sledgehammer without hitting them back twice as hard, in my opinion,” he said.
--With assistance from Erik Hertzberg.
(Updates with Smith comments starting in 11th paragraph)
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