What Possible losses may the provinces of Canada face if Trump applies tariffs?

President-elect Donald Trump of the United States threatened to put a 25% tariff on Canadian exports, prompting Prime Minister Justin Trudeau and the premiers of Canada’s provinces to meet Wednesday evening. The premiers’ priority is to protect their economies and exports. According to Prime Minister Justin Trudeau, a “Team Canada approach” will be essential in light of the extensive additional tariffs that Trump has promised.

Oil exports from Alberta

The United States accounted for 97.4% of Canada’s crude oil exports, with Alberta accounting for 87.4% of the total amount sent to the United States, according to Statistics Canada. Referring to Trump’s declared border security concerns, Alberta Premier Danielle Smith responded to the tariff threat on social media by stating that the Trump administration has “valid concerns related to illegal activities” at the border.

What is the future of Ontario’s automobile industry?

Doug Ford, the premier of Ontario, described Trump’s idea as the “biggest threat” from the U.S. government in decades and said it would be “very, very hurtful to Canadians and Americans” on both sides of the border. With yearly exports to its southern neighbor totaling $220.5 billion, Ontario is the province that exports the most value to the United States. Motor cars account for $36 billion of Ontario’s total export value, with gold coming in second at $17.66 billion.

Are the tariffs likely to pass?

Experts argue that although Trump has suggested broad tariffs, it is still unclear if he will implement them. According to Tu Nguyen, an economist at RSM, “trade talks between the United States, Canada, and Mexico are more likely to occur than sweeping tariffs.” It is actually exceedingly challenging to impose tariffs on all items entering from a nation in practice.

This is the list of commodities that Canada retaliated against following earlier Trump tariffs.

While continuing negotiations for a new North American Free Trade Agreement (NAFTA), Trump levied a 10-percent tariff on aluminum imports and a 25-percent tariff on steel products in 2018. It is yet unclear whether the federal government would impose retaliatory duties, as it did in the last trade spat between the two nations, as Canada braces for the possibility of tariffs once Donald Trump assumes office. 

• Canada responded by issuing a list of retaliatory duties on U.S. imports of around $16.6 billion for steel, aluminum, and hundreds of other goods
• Experts think the planned regulations could have a significant impact on many Canadian industries. If you want to review the details of the last trade dispute, click here.
• The other goods that Canada imposed during those retaliatory tariffs were yarn and everyday goods like savory and sweet snacks. These are the American imports that Canada last targeted.
• Quiche and Pizza
• water types, such as aerated and mineral waters, as well as those that have been flavor-infused or sweetened with sugar or another substance.
• Whether or not they contain soap, organic surface-active products and skin-cleaning preparations in the form of liquid or cream were offered for retail sale.
• Herbicides, fungicides, and insecticides in containers weighing no more than 1.36 kilograms
• Comforters, quilts, and other textile products that are composed of less than 85% silk or silk waste by weight
• Aspects of non-portable stoves or ranges that use gas fuel or gas and other fuels, such as those seen on boats, include cooking chambers, top surface panels, and pilot burners.
• Absorption type and combination gas and electric-powered refrigerator-freezers with independent external doors are examples of this type.
• Additional home furnishings including toiletries and sanitary products, including plastics
• Apart from bamboo, plywood is made entirely of wood sheets that are no thicker than six millimeters.
• Covering or coating paper and paperboard with non-adhesive polymers.