Home Business & Economy Tariffs & Trade Canada on guard with three-part tariff strategy

Canada on guard with three-part tariff strategy

Phase 1 - Immediate tariffs on specific items | Phase 2 - Tariffs on $37 billion of imports | Phase 3 - Tariffs on $110 billion of imports

Doug Ford, Justin Trudeau, Dominic LeBlanc
Prime Minister Justin Trudeau with Council of the Federation Chair Doug Ford (left) and Finance Minister Dominic LeBlanc (right) at a press conference about dealing with US tariffs, in Ottawa on Jan 15, 2025. [livestream]
CANADA-USA NEWS & ANALYSIS

Friday January 17, 2025 | VICTORIA, BC

Political summary by Mary P Brooke | Island Social Trends


There will be a federal cabinet retreat on January 20 (and 21) in Outaouais, Quebec as part of being alert and ready for any tariffs that get imposed by the new US President after his inauguration on January 20.

There is a ‘Team Canada’ plan that would inflict equal economic damage on the United States.

What might have been sorted out with new negotiations of CUSMA (the Canada-USA-Mexico trade agreement) is fast approaching what could be a full-on economic trade war between Canada and the United States.

premiers, prime minister
Prime Minister Justin Trudeau and Premiers at a press conference about dealing with US tariffs, in Ottawa on Jan 15, 2025. [livestream]

Canada is responding to the threat of tariffs that US President-elect Donald Trump said would be set at 25% on, possibly across the board.

“If push comes to shove we will be strong and unequivocal in our defence of Canada and Canadians,” said Trudeau this week.

Canada may well impose tariffs in return at equal value. “Everything is on the table,” said Trudeau this week. Many economists and observers feel the trade war could cause a recession that would affect everyone in Canada.

Trudeau met with his Canada-US Council today in Mississauga. This is a group of non-elected, non-government leaders in business, labour, and politics; Trudeau seeks to rely on their ideas and their connections.

justin trudeau, canada-us council
First meeting of the Canada-US Council as assembled by Prime Minister Justin Trudeau, held in Toronto on Jan 17, 2025. [livestream]

Three-part federal response:

Reportedly, Canada is preparing a three-phase response with an escalating approach as required:

  • Phase 1 – Immediate tariffs on specific items (mostly consumer goods)
  • Phase 2 – Tariffs on $37 billion of imports (advising Canadians to not buy those goods)
  • Phase 3 – Tariffs on $110 billion of imports (manufacturing areas)

Next prime minister will carry on the tariff torch:

Tariffs are the leading issue in the Liberal Party of Canada leadership race, which by March 9 will see a new party leader replace Justin Trudeau as prime minister.

So far the leading candidates for Liberal leader include Mark Carney, Chrystia Freeland and Karina Gould.

ist main, canada us, trudeau
Political news and analysis at IslandSocialTrends.ca .

===== RELATED: