Canada could impose tariffs on U.S. steel, orange juice in response to Trump threat

U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to a NATO round table meeting in Watford, Hertfordshire, England, Wednesday, Dec. 4, 2019. (Frank Augstein/AP Photo)

Canadian officials are narrowing a list of American products to target in the event the federal government must respond to U.S. tariffs on Canadian goods, CTV News has confirmed.

As first reported by CBC News, there is a document circulating among senior Canadian government officials which lists American-made goods which could be slapped with retaliatory levies.

Sources say U.S. steel products and ceramics, including toilets and sinks, as well as Florida orange juice are on the list of targeted items.

One senior government source tells CTV News the list represents a small number of items that could be on a final list of products subject to counter-tariffs.

“No decisions have been taken on whether to retaliate or what would be on that final list,” one source said on background.

Incoming U.S. president Donald Trump has threatened to impose a 25 per cent tariff on all Canadian goods imported into the U.S if Canada doesn’t take action to address the flow of illegal drugs and migrants over the shared border.

In response to the threat, Prime Minister Justin Trudeau made a surprise visit to Trump and members of his incoming administration at Mar-a-Lago in late November to discuss that threat. Since then, Canadian officials have been given no assurances tariffs can be avoided.

Trump has also made jabs at Canada, threatening to annex the country and make it a 51st state. On Tuesday, Trump went further during a wide-ranging press conference where he claimed the U.S could absorb Canada by using “economic force.”

Blocking exports of Canadian oil, electricity and critical minerals is another option on the table, according to one senior government source in Washington, DC.

Last month, Ontario Premier Doug Ford threatened to cut off energy exports from his province if Trump followed through on this threat. He later clarified that he wants to export more energy south of the border, but his comments were about standing up for Canadian workers.

In an interview on CTV’s Power Play with Vassy Kapelos on Wednesday, Natural Resources Minister Jonathan Wilkinson did not explicitly rule out putting an export tax on Canadian energy to the U.S.

“That list will certainly be focused on looking to extract the greatest amount of pain in the United States to ensure that there is pressure put on President Trump to withdraw them (tariffs),” Wilkinson said.

Still, Wilkinson says there is still a way for Canada to avoid being hit with the economically devastating tariffs.

“I think there are ways in which to have a conversation with the Trump administration, with senators, with American business, around ways in which we can help them with the agenda that he articulated during his campaign, that includes reducing dependence on China for things like critical minerals,” Wilkinson said.

Wilkinson will be visiting Washington next week to speak to American officials.

With files from CTV News Chief Political Correspondent Vassy Kapelos and Stephanie Ha