If the president-elect Donald Trump He follows up on his threat Imposing customs duties on Canadian goodsCanadian International Trade Minister Mary Ng said Thursday that Ottawa is ready to respond with tariffs that could target the energy sector.
“Everything is on the table,” Ng told Global Markets Reporter. Seema Modi On CNBC's “Squawk on the Street.”
This includes dollar-for-dollar retaliation. Canada's trade chief also refused to rule out imposing a tax on exports Canadian oil and gas Heading to the United States.
“I don't actually think the Americans want us not to sell electricity and oil and gas to America, because you know, I'm here in New York, the lights are on Broadway, and a lot of it is Canadian electricity,” Ng said.
“If you're going to impose tariffs on Canada, what you're actually going to do is make things more expensive for Americans,” she added.
Trump When he threatened to impose a blanket 25% tariff on all Canadian exports He takes office Monday. The threat is similar to the threat directed towards Mexico, the three parties to the US-Mexico-Canada trade agreement. Trump also talked about increasing tariffs on Chinese imports by 10%.
Canada and the United States enjoy a trade relationship that is practically unparalleled. In 2022, it was Canada Biggest buyer of American goods and the third largest exporter of goods to the United States
Ng and her team are currently drafting a list of US exports to Canada that could see additional tariffs if trade tensions escalate. “Everything will be on the table,” she said.
President Donald Trump and Canadian Prime Minister Justin Trudeau shake hands during a meeting before the NATO summit in Watford, in London, Britain, December 3, 2019.
Kevin Lemark | Reuters
The same applies to Canadian goods entering the United States.
“You can be pretty sure that if you're buying something (at) a supermarket… think a candy bar. There's probably going to be some Canadians there. So if you're paying $4 today, you'll probably pay $5 tomorrow.” . “Neng said.
The potential threat of an imminent trade war with the United States is also prompting Ottawa to continue doing business with the rest of its trading partners around the world, including Japan and the European Union.
“I've always had a mandate as Canada's Department of Commerce to diversify,” Ng told CNBC. “It's really great for us to work with America, but, of course, we also need to pursue opportunities around the world. And we're doing that.”
This is not the first time that Trump has used tariff threats in an attempt to resume trade negotiations with America's northern neighbor.
During his first term, Trump imposed tariffs on Canada Steel and aluminum exports To the United States
This move prompted Ottawa to announce Retaliatory charges On American products such as beef, chocolate, ketchup, etc.
At the time, Canada was not hiding it Selection criteria American exports will be subject to additional customs duties. Prime Minister Justin Trudeau's government deliberately chose products from Politically powerful places Such as battleground states and those with strong representatives in Congress.
The idea was that any negative economic impacts from reduced exports would be felt most acutely by people in the communities that make or grow the products. They, in turn, would put additional pressure on their elected representatives in Washington — including Trump, who was running for a second term — to resolve the tensions.
US President Donald Trump receives Canadian Prime Minister Justin Trudeau at the White House in Washington, United States, June 20, 2019.
Yuri Grybas | Reuters
This time, Ng said, Canada is looking to “find more common ground” before any escalation. She also said Ottawa is working to better secure the U.S.-Canada border. This may help Trump fulfill a major pledge he made during his election campaign.
“I think we have a very unique opportunity now for Canada and the United States to build a stronger economy, a stronger North American economy, by working together,” Ng said.
Increasing this cooperation could include purchasing more from the United States, said Kirsten Hillman, Canada's ambassador to the United States. news agency on monday. Seventy percent of Canadian military equipment is purchased from the United States, Hillman said.
When it comes to purchasing more military equipment, “everything is on the table,” Ng told CNBC, from fighter jets to drones.
Canada is currently in the midst of a leadership change. prime minister Justin Trudeau He resigned earlier this month. Trudeau's resignation came just weeks after the resignation of his former ally and deputy prime minister Chrystia Freeland Step down too.
in Announcing her resignationFreeland, who also served as the country's finance minister, noted differences with Trudeau over the direction of Canada's trade policy toward the United States.
