Top Canadian ministers said Monday that Canada will be ready to retaliate after President Donald Trump said he was thinking of imposing a 25% tariff on Canada and Mexico on Feb. 1.
Trump has been threatening to impose sweeping tariffs on Canada, Mexico and other trading partners.
“We’re thinking in terms of 25% on Mexico and Canada,” Trump said late Monday night in the Oval Office. “I think February 1st.”
The timetable for which tariffs may result remains uncertain. Trump signed an executive order soliciting a report jointly coordinated by the Secretary of Commerce due by April. 1.
Trump pledged during his inauguration speech that levies were arriving and said overseas countries would foot the trade- related costs-even though those are now levied upon U.S. importers, who at times pass such fees along to customers.
Canadian Foreign Minister Mélanie Joly said they "will continue to work on preventing tariffs" but said they are also "working on retaliation."
Canadian Finance Minister Dominic LeBlanc said Trump can be unpredictable.
"None of this should be surprising," he said. "Our country is absolutely ready to respond to any one of these scenarios."
Canadian leaders earlier expressed relief the tariffs were not imposed on the first day of Trump taking office.
Canada is one of the world's most trade-dependent countries, and 75% of Canada's exports, including automobiles and parts, are to the U.S.
Canada is the number one export destination for 36 states in the U.S. Close to $3.6 billion Canadian (US$2.7 billion) in goods and services crosses the border daily.
Despite Trump saying that the United States doesn't need Canada, a quarter of the oil America consumes each day comes from there.
"It would be a mistake for the American government to continue to move down the path to imposing tariffs in terms of cost living in the United States in terms of jobs in the United States and security of supply chains," LeBlanc said.
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