Canada Vs US: Biggest Trade War in Offing

As Donald Trump is all set for his inauguration on January 20 and it is widely buzzed that Trump is going to impose higher taxes, Canada is getting ready to fight back against possible trade tariffs from the United States. President-elect Donald Trump has threatened to impose a 25% tariff on all Canadian goods entering the US once he takes office. If this happens, Canada has a three-step plan to retaliate.

Trump has promised to start imposing these tariffs on his first day in office. The tariffs could affect consumer goods worth about 37 billion Canadian dollars (around 25.6 billion US dollars). In response, Canada has said it is prepared to impose its own “Trump tax” on US products if necessary. This could be the Biggest Trade War Between Canada and the US in decades

Canada’s retaliation could include tariffs on American goods such as steel, glassware, orange juice from Florida, whiskey from Tennessee, and peanut butter from Kentucky.

Canada Foreign Minister Melanie Joly said they are set to put maximum pressure on the US. Interestingly, Canada wants to target the Republican States or the Swing States (that elected Donald Trump) in particular.

The goal is to create pressure on jobs in those areas. Canada believes that governors and members of Congress from these states may pressure Trump to back down from his tariff threat.

As part of this, Canadian Foreign Minister Joly recently met with several Republican leaders in Washington, including Senator Lindsey Graham of South Carolina, Senator Jim Risch of Idaho, and Senate Majority Leader John Thune of South Dakota.

Now, the ball is in Donald Trump’s court. It needs to be seen how Trump would respond to these tariff threats from Canada. Will it turn out to be the biggest trade war or not needs to be seen. Let’s hope for the best.