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Canada weighs retaliatory tariffs focused on US goods
Ottawa says it could counter US pressure on sectors like steel and dairy with duties priced dollar-for-dollar, while energy-linked measures are politically sensitive.
BBC Business reports Canada is preparing retaliatory duties as part of a spiraling trade dispute with the US, pointing to room to maneuver because Canada is the top customer for 26 US states and a top three supplier for 45 of the 50 states. For now, planned Canadian countermeasures are described as dollar-for-dollar countermeasures targeting specific categories including steel, dairy, appliances, agricultural equipment, electronics, pulp and paper. The list is still being finalized, and polls cited by the outlet suggest a majority of Canadians would be unhappy with the government making significant concessions to the US. The outlet notes Prime Minister Mark Carney has highlighted that Canada supplies the vast majority of US natural gas and electricity imports and about 60% of crude oil imports, though squeezing the US on energy is not included in the current package. Ontario Premier Doug Ford, a vocal Trump critic, has said an energy surcharge is on the table and previously floated a 25% surcharge in 2025 on all electricity exports to the United States, which his government estimated would affect 1.5 million homes and businesses in Michigan, Minnesota and New York.
On energy, BBC Business adds that Ford said he is open to how far the dispute could go, while also arguing Canada has other potential leverage. The outlet points to Canada as the world’s top supplier of potash, a key fertilizer input, and says Ford linked the dispute to critical minerals such as lithium, nickel, and graphite, adding that the US is Canada’s top destination for mineral exports.
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