## Canada Prepares Retaliatory Tariffs Amid Trump's Threat to Impose New Duties

TORONTO (AP) - In response to potential sweeping tariffs from President-elect Donald Trump on Canadian products, Canadian officials are already considering retaliatory tariffs on specific U.S. goods. Trump has threatened to levy a 25% tax on all imports from Canada and Mexico if these countries do not curb the flow of drugs and migrants across their borders.

A senior Canadian official, speaking on condition of anonymity, confirmed that while preparations are underway, no final decisions have been made. This move recalls events from 2018 when Canada imposed billions of dollars in duties on U.S. goods following increased tariffs on Canadian steel and aluminum. Key U.S. goods targeted then included yogurt from Paul Ryan's home state of Wisconsin and whiskey from Mitch McConnell's home state of Kentucky.

Trump reiterated his stance on Monday, focusing on illegal immigration, despite lower numbers at the Canadian border compared to the southern U.S. border. U.S. Border Patrol data shows 56,530 arrests at the Mexican border in October alone, whereas there were 23,721 arrests at the Canadian border from October 2023 to September 2024.

Canadian officials argue lumping Canada with Mexico is unjustified and reiterated their willingness to collaborate with the U.S. to manage these numbers. They also raised concerns over the potential northward migration surge if Trump proceeds with his mass deportation plans.

Furthermore, Trump criticized the import of fentanyl from both Mexico and Canada, though U.S. customs figures highlight a stark difference between the two borders. Only 43 pounds of fentanyl were seized at the Canadian border in the last fiscal year, compared to 21,100 pounds at the Mexican border.

Deputy Prime Minister Chrystia Freeland emphasized the deep economic intertwining between the two nations, noting that Canada is the primary export destination for 36 U.S. states. Daily trade between the two countries amounts to nearly $3.6 billion Canadian (US$2.7 billion). Particularly significant is Canadian oil, which makes up about 60% of U.S. crude oil imports, essential for domestic energy, and aligns with Trump’s pledge to cut American energy bills by half within 18 months.

Prime Minister Justin Trudeau held an emergency virtual meeting with provincial leaders to discuss a possible bilateral trade agreement with the United States that excludes Mexico. Concurrently, Mexican President Claudia Sheinbaum disclosed that her government is working on its list of potential retaliatory tariffs if necessary.