Canadian prime minister Justin Trudeau says Canada will respond in kind to Trump’s tariffs.  Canada Has Counter-Tariffs ReadyBloomberg reports Canada Has Counter-Tariffs Ready If Trump Launches Trade War, Trudeau Says

Speaking on MSNBC’s Inside With Jen Psaki, the outgoing Canadian prime minister said his government isn’t looking for a trade fight with the new administration but will have to retaliate if the US puts tariffs on Canadian products.

Canada buys more US-made goods than any other country, according to US Commerce Department export data — about $320 billion in the first 11 months of last year. The US trade deficit on goods with Canada was $55 billion during that period.

“As we did last time, we are ready to respond with tariffs as necessary,” Trudeau said. “We are the number one export partner of about 35 different US states and anything that thickens the border between us ends up costing American citizens and American jobs.” On a per-capita basis, Canada buys far more from the US than the US buys from Canada.

This time, Trump has said he’s considering broad 25% tariffs against items from Mexico and Canada. One draft retaliation plan circulating within the Canadian government would affect almost every category of products imported by Canada from the US, Bloomberg reported on Jan. 10.

More than half of US crude imports come from Canada, most of it from Alberta. Asked whether Canada could curb energy supplies to the US, Foreign Affairs Minister Mélanie Joly told CTV News: “Everything is on the table.”

The lead chart shows Canada has the means to respond in kind.Trump has an advantage given Trudeau’s resignation and an election in October potentially making a concerted response difficult.However, I can’t shake the feeling that Trump understands there would be serious repercussions to illegally breaking the USMCA treaty crafted by him and signed off by the US Senate.No one could possibly believe Trump in any deal if he broke his own deal.If Trump wants total trade chaos, he can have it. But I remain totally skeptical.Since USMCA renews in 2026, I find it more likely that Trump goes after China, Vietnam, and the EU first. China’s Trade Balance Soars to a Record $1 TrillionYesterday, I commented China’s Trade Balance Soars to a Record $1 TrillionIf Trump wants a global response on China, it doesn’t help to pick fights with your immediate neighbors. So, What Country Wants to Be Like Germany Now?Also consider my December 2024 blast at Germany So, What Country Wants to Be Like Germany Now?

The collapse of Germany shocks many. But I have been discussing why this was inevitable for over a decade.

Export mercantilism eventually blows up.Germany and China are finding that out now. Yet, both want to double down on policies that caused the stress.For what to do about this, please consider Trump’s New Tariff Advisor and Advice for AdvisorsWe will soon find out, but I am calling a bluff on Canada and Mexico. But Trump is very serious about China.More By This Author:China’s Trade Balance Soars To A Record $1 Trillion Elon Musk Admits DOGE Can’t Find $2 Trillion In Budget CutsNonfarm Payrolls Rise 256,000 In December; Unemployment Decreases