Canada is preparing retaliatory measures against the United States that could affect American businesses, jobs and household costs as the trade war between the two countries escalates.
Canadian Prime Minister Mark Carney has pledged to match Washington’s latest tariffs dollar for dollar, with Canada expected to announce details on Tuesday.
According to CNN, Carney said retaliatory tariffs “will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.”
Canada is a major market for US exporters in many of those industries and higher tariffs could reduce Canadian demand for American products, potentially forcing some US businesses to cut workers’ hours or jobs.
Ottawa could go further if US President Donald Trump escalates the dispute with Canada restricting exports of energy, electricity, potash and critical minerals to the US.
Ontario Premier Doug Ford has suggested Canada should be prepared to cut electricity exports if tensions worsen. Ontario supplies power to states including New York, Michigan and Minnesota.
Asked about possible retaliation on Monday, Carney said “nothing is off the table.”
Such restrictions could increase costs for American consumers and companies that depend on Canadian supplies.
Ontario previously imposed a 25 percent surcharge on US electricity exports, which the provincial government estimated could affect 1.5 million American homes and cost up to $400,000 CAD “every day the surcharge remains in place.”
