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Ottawa plans to tax certain American products in response to Trump

The federal government is examining the possibility of imposing additional customs duties on certain American items, according to a government source, with the country taking seriously the threats of Donald Trump, who wants to tax Canadian products at 25%.

• Also read: Threats of 25% customs tariffs: a “big stress” for Quebec SMEs

• Also read: Threats from Trump: Legault changes tone towards Trudeau

Ottawa is considering all eventualities and in particular the possibility of responding by indirectly increasing customs taxes, a government source explained to AFP, adding that work to identify target products has begun.

Friday, in front of the press, Canadian Prime Minister Justin Trudeau suggested that he had no doubt about Donald Trump’s intention to implement his announced increase in customs duties when he comes to power.

“When Donald Trump makes such statements, he intends to carry them out,” Justin Trudeau told reporters in the province of Prince Edward Island.

“There is no doubt about it,” he added while, in the country, some believe and hope that Donald Trump’s declaration on Monday on customs duties which would increase to 25% from January is only a negotiation tactic. .

This announcement from Donald Trump is a new thorn in the side of the Canadian. Candidate for re-election in a few months, the Liberal Prime Minister is well ahead in the polls by his conservative opponent, Pierre Poilievre.

In 2023, more than three-quarters of Canadian exports by value (C$592 billion) went to the United States.

And in terms of employment, nearly 2 million people in Canada depend on exports out of a population of approximately 41 million.

Mr. Trudeau insisted Friday that 25% tariffs on Canadian imports would harm not only Canadians, but Americans as well.

During Trump’s first term, the United States imposed tariffs of 25% on steel imports and 10% on aluminum imports, to which Ottawa responded by targeting certain products.

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