As Canada braces for a possible trade war and the economic fallout, Prime Minister Justin Trudeau says his country will bring a “forceful but reasonable” retaliation to any U.S. tariffs. The Guardian says Trudeau acknowledged potentially difficult economic times ahead. Speaking to an advisory council on Canada-U.S. relations, Trudeau said, “I know Canadians might be anxious and worried, but I want them to know that all levels of government have their backs.” Canada sends 75 percent of all its goods and services exports to the U.S., its largest trading partner and closest ally. Trudeau points out that the trade spat is “not what we want,” but said if President Trump follows through on his threats, “We will also act.” A first round of retaliatory tariffs would cover $37 billion of U.S. exports to Canada. If needed, the second round would escalate by imposing tariffs on $110 billion worth of goods.
An announcement on Monday afternoon put a 30 day delay in place for tariffs on Canada as well as Mexico.