Canada ready to respond to potential US tariffs on Monday, foreign minister says

Canada is ready to respond to tariffs from its top trade partner the United States on Monday if President-elect Donald Trump follows through on his threat to impose them, Foreign Minister Melanie Joly said on Friday.

Tariffs could be crippling, given Canada sends 75% of all goods and services exports to the United States, and Canadian officials have stressed the economic harm they would also cause the U.S.

"We have a series of measures that are already prepared, certainly, tariffs linked to imports. If the President goes ahead on Monday, we will be ready," Joly said to reporters on Friday after talks in Washington aimed at averting tariffs. "And we are ready for a second round and we are ready for a third round."

If Trump does make good on his threat, Canada would immediately target a small group of goods, including orange juice from Florida, where he lives, a source familiar with the matter said on Wednesday.

Canada has drawn up a broader list of targets but would hold public consultations before acting, said the source, adding the extent of any potential reaction would depend on what Trump does. Canada could impose countermeasures on up to C$150 billion ($105 billion) worth of U.S. imports, the source said.

Energy and Natural Resources Minister Jonathan Wilkinson said on Thursday Canada could also impose export tariffs on critical minerals.

Trump says he wants to impose a 25% tariff to push Canada to tighten border security to stem the flow of illegal migrants and cut fentanyl smuggling, a move that would appear to violate a free-trade deal.

Canada announced a C$1.3 billion ($909 million) border security plan in response. Prime Minister Justin Trudeau has said less than 1% of irregular migrants and less than 1% of fentanyl entering the United States come from Canada.

"If push comes to shove, we will be strong and unequivocal in our defense of Canada and Canadians," Trudeau said on Friday at a meeting of his government's newly convened council on Canada-U.S. relations.