Canada Draws Up Retaliatory Tariff List Worth 152 Trillion Won in Response to Trump's Tariff Threats

by Byun Seonjin

Published 17 Jan.2025 05:18(KST)

Updated 17 Jan.2025 13:01(KST)

Yonhap News

The Canadian government is reportedly preparing a list of retaliatory tariffs on U.S. imports worth 152 trillion won in response to the threat of 'Trump tariffs.' This includes plans to impose retaliatory tariffs on U.S. steel and aluminum.

On the 16th (local time), Bloomberg News cited anonymous sources familiar with the matter, reporting that the Canadian government led by Prime Minister Justin Trudeau is preparing various phased retaliatory tariff scenarios in anticipation of high tariffs on Canadian imports by U.S. President-elect Donald Trump after his inauguration.

If the second Trump administration imposes tariffs, Canada plans to immediately impose retaliatory tariffs on about 10 items. These 10 items reportedly include signature specialty products from Republican-leaning regions such as Florida orange juice and Kentucky bourbon whiskey. This is interpreted as a strategy to worsen public opinion surrounding Trump’s tariff policy.

The Trudeau administration plans to expand the scope of retaliatory tariffs to other U.S.-made manufactured products if the Trump administration continues to increase tariff intensity. Bloomberg reported that this could include all U.S.-made steel and aluminum products. According to U.S. Department of Commerce data, Canada’s imports of U.S. steel amounted to 3.74 million tons in 2023, valued at 5.93 billion USD (approximately 8.6 trillion won). U.S. aluminum imports were 430,000 tons, valued at 1.91 billion USD (approximately 2.8 trillion won).

Bloomberg reported that the provisional list of retaliatory tariffs under consideration by the Canadian government is estimated to reach up to 150 billion Canadian dollars (approximately 152 trillion won). Prime Minister Trudeau said in a press conference the day before, "We are reviewing all options and support a 'dollar-for-dollar' proportional response to the Trump tariffs."

Earlier, in November last year, President-elect Trump stated that drugs and criminals were entering the U.S. through the Canadian and Mexican borders and threatened to impose a 25% tariff if the problem was not resolved. Prime Minister Trudeau attempted to resolve the issue by visiting Trump’s residence in Florida shortly after Trump’s tariff bombshell announcement, but Trump pressured him by saying, "If you cannot meet the demands, then annex Canada as the 51st state of the U.S."

Canada’s exports to the U.S. in 2023 amounted to 592.7 billion Canadian dollars (approximately 605 trillion won), accounting for more than three-quarters of its total exports.