Liberal management contender Chrystia Freeland launched Monday what she’s calling her “plan to face as much as Trump” — a coverage doc that features the specter of large tariffs on U.S. items to make the Individuals pay in the event that they go after the Canadian economic system.
Freeland referred to as on the federal authorities to take a tough line and “instantly publish an in depth, dollar-for-dollar retaliation checklist” that features $200 billion price of U.S. merchandise that could possibly be topic to Canadian commerce motion if President Donald Trump strikes towards this nation.
Freeland mentioned publishing that form of checklist, earlier than Trump even levies any tariffs, can be a form of pre-emptive strike and a method to remind the American political institution that coming after Canada will come at a price.
“Being good means retaliating the place it hurts,” Freeland mentioned.
“If President Trump imposes 25 per cent tariffs, our counterpunch should be dollar-for-dollar — and it should be exactly and painfully focused,” she mentioned.
She additionally needs to convene an “worldwide summit” to kind some form of “coalition” of aggrieved international locations that face threats from Trump. She mentioned the summit ought to embrace leaders of Mexico, Denmark, Panama and the European Union.
Like Canada, Trump has threatened Mexico and the EU with punishing tariffs and has instructed the U.S. might forcibly annex Greenland, a Danish territory, and the Panama Canal.
“Trump thinks we’re on the market and that he can push us round. This can be a critical second that calls for a critical plan to struggle for Canada,” Freeland mentioned.
WATCH | Why Freeland says counter-tariffs are the easiest way to struggle Trump:
Why Freeland says counter tariffs are the easiest way to struggle Trump
Liberal management hopeful Chrystia Freeland says dollar-for-dollar tariffs will ship U.S. President Donald Trump the message that “Canada just isn’t on the market.”
Freeland has made combating again towards Trump the centrepiece of her management marketing campaign to date. She has sought to remind Liberal voters she performed an important position in renegotiating NAFTA the final time Trump was in workplace.
Overseas Affairs Minister Mélanie Joly mentioned Monday that Canada continues to be attempting to get Trump to carry off slapping tariffs on Canadian items by way of diplomacy.
However, if the tariffs go forward, Canada is able to reply with its personal measures, she mentioned.
“We might be prepared for day one,” she mentioned.
Requested about Freeland’s name to launch an inventory of products that could possibly be hit with tariffs earlier than Trump strikes, Joly mentioned: “We consider diplomacy can work and that is why we’re having conversations and we can’t negotiate in entrance of the general public.”
Minister of Overseas Affairs Mélanie Joly says Canada is not going to negotiate in public and that there is nonetheless hope the U.S. is not going to make good on its tariff menace. (Justin Tang/The Canadian Press)
Joly mentioned there’s nonetheless an opportunity that Canada’s arguments towards tariffs will sway Trump to drop his threats.
She mentioned Canada is the largest buyer for U.S. items and companies and, once you exclude oil exports, that are pushed by U.S. demand, the Individuals even have a commerce surplus with Canada.
“We hope details will prevail,” she mentioned.
As a part of the diplomacy push, Joly mentioned Canada is speaking to allies, together with the EU, the UK and Mexico, about Trump’s threatened commerce motion and the way they may collectively reply.
Joly can even meet with U.S. Secretary of State Marco Rubio on Wednesday.
Trump has repeatedly justified tariffs on Canada by saying the U.S. is “subsidizing” Canada as a result of it runs a commerce deficit.
He has framed that deficit, which is essentially pushed by American demand for Alberta oil that trades at costs far decrease than the world common, as an indication Canada is “ripping off” the U.S.
Trump has floated wildly inaccurate figures about simply how massive that deficit is — even claiming final Friday it was “$200 billion.”
The U.S. authorities’s personal knowledge suggests the commerce in items deficit with Canada was $55 billion US as of November 2024.
WATCH | Overseas Affairs Minister Mélanie Joly on a dollar-for-dollar checklist: 
‘We believe that diplomacy can work’ to forestall U.S. tariffs, says Joly
Overseas Affairs Minister Mélanie Joly says the federal authorities is working each day to forestall tariffs from the US. Joly says as a result of unpredictability of the brand new administration, Canada needs to be prepared and dealing to each forestall tariffs and develop a response.
The world bought its first have a look at how Trump plans to deploy tariffs to get what he needs from different international locations over the weekend.
The president of Colombia, Gustavo Petro, initially refused to just accept deportees despatched from the U.S. on American army planes solely to vary his thoughts when Trump went forward with 25 per cent tariffs on Colombian items.
Trump signalled late Sunday he would carry the tariffs after Petro agreed to take again Colombians who entered the U.S. illegally and had been kicked out.
WATCH | Colombia agrees to just accept U.S. deportation flights after Trump tariff menace: 
Colombia agrees to just accept U.S. deportation flights after Trump tariff menace
Colombian President Gustavo Petro averted an financial catastrophe after his authorities and the U.S. reached a deal on deportation flights. U.S. President Donald Trump had threatened tariffs and sanctions to punish Colombia for refusing to just accept army flights carrying deportees.
Trump is utilizing commerce threats to “unsettle Canadians,” Freeland mentioned, and Canada ought to do the identical.
Drawing up an inventory of products that will face retaliatory tariffs might result in political stress from the enterprise group on Trump to again off, she mentioned.
Freeland mentioned focusing on $200 billion price of American items for potential tariffs will make U.S. exporters “fear whether or not their companies would be the ones we hit.”
She floated tariffs on merchandise coming from Trump’s personal state and swing states that had been aggressive within the final election.
Freeland mentioned Florida orange growers, Wisconsin dairy farmers and Michigan dishwasher producers needs to be potential targets for Canadian retaliatory tariffs.
Canada adopted an analogous playbook when Trump hit Canadian metal and aluminum with tariffs in his first time period.
If Trump goes forward with tariffs, the previous finance minister additionally mentioned she needs the federal authorities to instantly “cease the buying of any items from any U.S. firms,” with some nationwide safety exceptions.
“If tariffs are imposed, American companies, together with American-based branches of worldwide companies, might be barred from all initiatives funded by the federal authorities,” Freeland mentioned.
Carney says dollar-for-dollar response ‘a given’
Former Financial institution of Canada governor Mark Carney, Freeland’s primary management rival, has additionally mentioned he helps slapping punitive tariffs on the U.S. if Trump goes forward together with his promised 25 per cent levy on Canadian items.
“Greenback-for-dollar retaliatory tariffs by Canada needs to be a given and they need to be aimed the place their impacts in the US might be felt the toughest. Each greenback raised by Canadian tariffs needs to be used to assist assist Canadian staff by way of this struggle,” Carney mentioned in a media assertion.
WATCH | Liberal MPs more and more get behind Mark Carney 
Liberal MPs more and more get behind Mark Carney
Mark Carney has acquired public assist from 52 Liberal MPs, in comparison with 26 for Chrystia Freeland — one thing she says is an indication he’s a ‘Liberal insider.’
Carney is leaning on his expertise serving to to run the Canadian and British economies to pitch himself as the possible Liberal chief with one of the best plan for the economic system.
Carney mentioned the federal authorities “should act now to spice up funding in Canada.”
“It will require dramatic modifications to our financial insurance policies, which I’m proposing,” he mentioned.
