Ottawa could impose tariffs on $105 billion worth of US imports: report

B.C. warns it stands to lose $69 billion in economic activity, 124,000 jobs by 2028 if US tariffs implemented

Ottawa could impose tariffs on $105 billion worth of US imports: report

The Canadian federal government is going to fight the proposed tariffs by US president-elect Donald Trump by imposing its own tariffs on US imports, according to a report.

Ottawa could impose countermeasures on up to $150 billion worth of US imports if President-elect Donald Trump puts tariffs on Canadian goods and services, Reuters reports, citing a source familiar with the matter.

The extent of any potential reaction would depend on what Trump does, the source says, according to the report.

While the federal government has come up with a list of targets, it would hold public consultations before acting, notes Reuters.

Various groups have called on the federal government to take decisive action following Trump’s tariffs threat.

What will be the impact of US tariffs?

Recently, the British Columbia (BC) government warned of significant damage to the province’s economy and workforce should Trump’s proposed tariffs be implemented.

B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028, with the province’s real GDP projected to decline by 0.6 per cent year over year in both 2025 and 2026, the government said, citing a preliminary assessment done by its Ministry of Finance.

The province also believes it will lose 124,000 by 2028, with the largest declines in natural-resource sector export industries and associated manufacturing, and significant cuts in the transportation and retail sectors.

The unemployment rate would increase to 6.7 per cent in 2025 and 7.1 per cent in 2026, according to the government.

B.C. also warns that corporate profits could see an annual decline in the range of $3.6 billion to $6.1 billion.

The ministry's preliminary assessment is based on internal planning assumptions, including that a 25 per cent US tariff would remain in place for the duration of the Trump presidency and that Canada retaliates, as well as key economic indicators and inputs, including economic activity, trade, the labour market and demographics.

Previously, Ontario Premier Doug Ford praised the federal government’s plan to secure the Canada-U.S. border in response to former Trump’s threat to impose a 25-per-cent tariff on Canadian imports.

Premier David Eby and other premiers will travel to Washington, D.C., on Feb. 12, 2025, to continue to make the case against tariffs for all Canadians.

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