Canada is already examining tariffs on certain U.S. items following Trump’s tariff threat

Trump threatens tariffs on Canada and Mexico over drugs and migrants, but Mexico agrees to stop migration.

Canada is already examining possible retaliatory tariffs on certain items from the United States should President-elect Donald Trump follow through on his threat to impose sweeping tariffs on Canadian products, a senior official said Wednesday (November 27, 2024).

Mr. Trump has threatened to impose tariffs on products from Canada and Mexico if the countries don't stop what he called the flow of drugs and migrants across southern and northern borders. He said he would impose a 25% tax on all products entering the U.S. from Canada and Mexico as one of his first executive orders.

But Mr. Trump posted Wednesday evening on Truth Social that he had a “wonderful conversation" with new Mexican President Claudia Sheinbaum.

“Mexico will stop people from going to our Southern Border, effective immediately. THIS WILL GO A LONG WAY TOWARD STOPPING THE ILLEGAL INVASION OF THE USA. Thank you!!!” Mr. Trump posted.

It wasn't immediately clear if that frees Mexico from the tariff threat.

“She has agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border. We also talked about what can be done to stop the massive drug inflow into the United States, and also, U.S. consumption of these drugs,” Mr. Trump added.

In Canada, a government official said Canada is preparing for every eventuality and has started thinking about what items to target with tariffs in retaliation. The official stressed no decision has been made. The person spoke on condition of anonymity as they were not authorized to speak publicly.