Canadian plans to fight Trump’s tariff threats ‘where it hurts’

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 US President Donald Trump makes good on his threat to slap 25 per cent tariffs on Canadian goods.

A list of products worth $200 billion Canadian dollars (US$139 billion) would send a message to US 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 US trade deficit with Canada -- a natural resource-rich nation that provides the US with commodities like oil -- as a subsidy.

Canada is the top export destination for 36 US 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 publicising a list in advance, citing the risk of antagonising 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."