Ottawa has announced retaliatory levies on U.S. goods, including beef, chocolate, ketchup, and more, as trade tensions with the United States loom. This move comes as Canada braces for potential economic ramifications if President-elect Donald Trump enacts a 25% blanket tariff on Canadian imports. In response, Canada's minister of international trade, Mary Ng, has been proactive in drafting a list of U.S. exports to Canada that could face additional tariffs.
Amidst this backdrop, Canada is undergoing a leadership transition with Prime Minister Justin Trudeau having stepped down earlier this month. As the nation navigates these changes, it remains steadfast in its trade relations, having been the largest purchaser of American goods and the third-largest exporter of goods to the U.S. in 2022. Despite the potential for escalating trade tensions, Ottawa is strategically looking to enhance collaboration with the U.S., emphasizing a cooperative approach over tit-for-tat tariff increases.
Mary Ng has emphasized that "everything is on the table" concerning Canada's military procurement strategies, signaling potential adjustments in purchasing more military equipment such as fighter jets and drones from the U.S. This statement highlights the importance of maintaining a balanced and robust trade relationship with its southern neighbor, given that 70% of Canada's military hardware is sourced from the United States.
"Everything is going to be on the table," – Mary Ng
As Ottawa prepares for possible trade conflicts, it has also expressed readiness to consider dollar-to-dollar retaliation or an export tax on Canadian oil and gas if Trump's tariff plans are realized. Ng has refused to dismiss such measures, underscoring Canada's resolve to protect its economic interests.
"If you're going to put tariffs on Canada, what it actually will do is make things more expensive for Americans," – Mary Ng
The potential impact of these tariffs is significant. Canadians could face higher prices for U.S. goods, with the possibility of price hikes by up to 25%. This could affect everyday consumer items, as Ng illustrated by pointing out that even a candy bar might see a price increase from $4 to $5.
"You can pretty much be sure that if you're buying something [at a] supermarket… think about a candy bar. There's probably some Canadian in there. So if you're paying $4 today, you might be paying $5 tomorrow," – Mary Ng
Despite these challenges, Canada remains committed to strengthening its economic ties with the United States. Kirsten Hillman, Canada's ambassador to the U.S., has indicated that increasing collaboration could involve purchasing more from American markets. This strategic pivot aims to bolster a North American economy that benefits both nations.
"I think we have a very unique opportunity right now for Canada and the United States to build an even stronger economy, a stronger North American economy, by working together," – Mary Ng
Ottawa's approach includes better securing the border between the U.S. and Canada while also engaging with other international trade partners like Japan and the European Union. This broad engagement strategy seeks to mitigate risks associated with a potential trade war with the United States.
"I don't actually think Americans want us to not be selling electricity, oil and gas to America, because you know, I'm here in New York, the lights on Broadway, lots of it is Canadian electricity," – Mary Ng
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