VANCOUVER, British Columbia — Chrystia Freeland, the former finance minister, is campaigning to succeed Justin Trudeau as Canada’s prime minister. On Monday, she emphasized that Canada should prepare a “retaliation list” detailing which goods would be targeted if U.S. President Donald Trump follows through with his threat to impose a 25% tariff on Canadian products.
Freeland proposed that a list encompassing items valued at CAD 200 billion (approximately USD 139 billion) would effectively communicate the detrimental impact such tariffs would have on U.S. exporters. She remarked, “Being smart means retaliating where it hurts. Our counterpunch must be dollar-for-dollar — and it must be precisely and painfully targeted: Florida orange growers, Wisconsin dairy farmers, Michigan dishwasher manufacturers, and much more.”
Highlighting the importance of demonstrating the specific repercussions that Americans would face from Trump’s administration, Freeland stated, “Now is the moment when Canada must make clear to Americans the specific costs that will accompany any tariff measures.” Trump has been reported to utilize economic pressure as leverage, even claiming that Canada would benefit as the U.S.’s 51st state. He continues to inaccurately depict the U.S. trade deficit with Canada, a nation abundant in natural resources that supplies the U.S. with essential commodities like oil, as a form of subsidy.
Canada is crucial for American trade, being the primary export market for 36 U.S. states. Daily, nearly CAD 3.6 billion (USD 2.7 billion) of goods and services trade hands across the border. John Ries, a senior associate dean at the University of British Columbia’s Sauder School of Business, supported the notion of retaliating against any tariffs but cautioned against the preemptive release of a product list. He cited the potential risk of provoking Trump further, complicating negotiations if the U.S. were to reconsider their stance.
“He always wants to win,” Ries stated, adding, “He doesn’t want to show any weakness.” Freeland further articulated her plans for the future, asserting that should she secure a leadership victory, she would ban U.S. firms from participating in Canadian federal contracts, excluding defense contracts. Additionally, she proposed calling for an international summit with leaders from Mexico, Denmark, Panama, and the European Union to coordinate efforts to address threats to both sovereignty and economic stability.
Suggestions have emerged among lawmakers that Canada might halt energy exports to the U.S., an idea that has met resistance from Alberta’s Premier Danielle Smith. Furthermore, former central banker Mark Carney, also in the race for Liberal leadership, suggested that Quebec’s delivery of hydroelectric power to the U.S. should remain a viable option in case of an ongoing trade dispute with Trump. Freeland’s sudden resignation from her finance minister role last month prompted Trudeau to announce his own decision to step down as prime minister and leader of the Liberal Party.
Trudeau is set to remain in his position until a new leader for the Liberal Party is selected on March 9. The next leader could end up being the shortest-serving prime minister in the nation’s history. The three opposition parties have vowed to challenge the minority Liberal government with a no-confidence vote when Parliament reconvenes on March 24, and an election is anticipated to take place this spring.
