Canadian PM hopeful lays out plan to fight Trump's tariff threats 'where it hurts'

[January 28, 2025]  By JIM MORRIS

VANCOUVER, British Columbia (AP) — Chrystia Freeland, the former finance minister who is running to replace Justin Trudeau as Canada’s prime minister, said Monday Canada needs to release a “retaliation list” of goods the country would target if U.S. President Donald Trump makes good on his threat to slap 25% tariffs on Canadian goods.

A list of products worth $200 billion Canadian dollars (US$139 billion) would send a message to U.S. exporters about the harm tariffs would cause them, Freeland said in a statement.

“Being smart means retaliating where it hurts,” she said. “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."

“Now is the moment when Canada must make clear to Americans the specific costs that will accompany any tariff measures by the Trump administration.”

Trump has said he will use economic coercion to pressure Canada to become the nation’s 51st state. He continues to erroneously cast the U.S. trade deficit with Canada — a natural resource-rich nation that provides the U.S. with commodities like oil — as a subsidy.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.

John Ries, senior associate dean at the University of British Columbia Sauder School of Business, said Canada should retaliate against any tariffs but warned against publicizing a list in advance, citing the risk of antagonizing Trump — and making it harder for him to back off on his threats.

“He always wants to win,” said Ries. “He doesn’t want to show any weakness.”

Canada's former Finance Minister Chrystia Freeland speaks at a press conference in Toronto on Sunday Jan. 19, 2025, as she kicks off her campaign to become the next Liberal party leader. (Frank Gunn/The Canadian Press via AP)

Freeland said Monday that if she wins the leadership race and become prime minister she would also prohibit American companies from bidding on Canadian federal procurement (excluding defense).

She also said she would convene an international summit with the leaders of Mexico, Denmark, Panama, and the president of the European Union to “coordinate a joint response to challenges to our sovereignty and our economies.”

Some lawmakers have suggested Canada could stop energy shipments to the United States, a move opposed by Daniele Smith, the premier of Canada’s oil-rich province of Alberta.

Former central banker Mark Carney, who is also running for the Liberal leadership, said over the weekend that cutting off Quebec’s hydro exports to the U.S. should remain an option on the table in a trade fight with Trump.

It was Freeland’s abrupt resignation as finance minister last month that forced Trudeau to say he is resigning as prime minister and party leader.

Trudeau is to remain prime minister until a new Liberal Party leader is chosen on March 9.

The next Liberal leader could be the shortest-tenured prime minister in the country’s history. All three opposition parties have vowed to bring down the Liberals’ minority government in a no-confidence vote after parliament resumes on March 24. An election is expected this spring.

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