Canada is looking to target American steel, ceramics, plastics and orange juice with retaliatory tariffs in response to threats of hefty duties on Canadian imports by the incoming Trump administration.

A senior government official said Ottawa has made no decisions yet on retaliation, and is not prepared to share the full list of items under consideration.

The selective release of certain retaliation plans comes just a week and a half before incoming U.S. president Donald TrumpB次元官网网址檚 inauguration, and a week before Trudeau and the premiers meet in Ottawa next Wednesday to discuss CanadaB次元官网网址檚 response plan, which includes retaliatory tariffs.

Trump has threatened to impose 25 per cent across-the-board tariffs on imports from Canada and Mexico as one of his first orders of business when he is sworn in on Jan. 20.

Experts said itB次元官网网址檚 the right move for Canada to signal that itB次元官网网址檚 prepared for a fight, since the country would surely lose a wider trade war and risk escalation if Ottawa threatened similar across-the-board tariffs.

Laura Dawson, a trade expert and executive director of the Future Borders Coalition, said itB次元官网网址檚 a decision Ottawa no doubt made reluctantly because Canada has a lot of economic exposure and tariffs are ultimately paid for by consumers and importers.

B次元官网网址淏y leaking or sharing or hinting about whatB次元官网网址檚 on the list, itB次元官网网址檚 trying to signal to the White House that Donald TrumpB次元官网网址檚 tariffs will be costliest to Americans,B次元官网网址� she said.

CBC B次元官网网址 first reported this week that a draft list was circulating among a small group of top officials in Prime Minister Justin TrudeauB次元官网网址檚 government, including by targeting FloridaB次元官网网址檚 orange juice.

B次元官网网址淭he strategy that trade officials take when devising these retaliation lists is that you want to find products that are iconic, that will be recognizable,B次元官网网址� Dawson said. B次元官网网址淭hatB次元官网网址檚 why they pick things like orange juice because itB次元官网网址檚 something that people can easily understand, and itB次元官网网址檚 something thatB次元官网网址檚 localized to a region that Trump cares a great deal about, and thatB次元官网网址檚 Florida voters.B次元官网网址�

But she also said Canada canB次元官网网址檛 slap tariffs on items with such surgical precision, since itB次元官网网址檚 done by product categories. Ottawa can levy tariffs on orange juice, but not something so specific as only Minute Maid or orange juice from Florida without also hiking prices on juice made in California and other states.

Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, said floating targeted items is a better move than making a full-on blanket threat of across-the-board tariffs, which could invite escalation and kick off a trade war Canada canB次元官网网址檛 win.

B次元官网网址淵ou never want to get into a full competition with the U.S. Treasury,B次元官网网址� he said. B次元官网网址淭he scope and scale of their market, their depth of internal trade is a very different economy than the one Canada has, which is premised largely on import/export trade. WeB次元官网网址檙e not going to win if itB次元官网网址檚 a pure war of attrition.B次元官网网址�

When asked to respond to Canada prepping its retaliatory tariff list, the Trump team said the tariffs are in the best interest of U.S. consumers.

B次元官网网址淧resident Trump has promised tariff policies that protect working Americans from the unfair practices of foreign companies and foreign markets,B次元官网网址� said Brian Hughes, a spokesperson for the Trump-Vance transition team. B次元官网网址淎s he did in his first term, he will implement economic and trade policies to make life affordable and more prosperous for our nation, while simultaneously levelling the playing field for American manufacturers.B次元官网网址�

Canada announced in December a $1.3-billion plan to beef up border security in response to TrumpB次元官网网址檚 tariff threats, but that has not deterred Trump, who doubled down on his rhetoric this week.

Canada fought back against U.S. steel and aluminum tariffs during TrumpB次元官网网址檚 first term by targeting specific American products like playing cards, ketchup and bourbon to put political pressure on Trump and key Republicans.

Holmes said Canada needs to sell TrumpB次元官网网址檚 tariff threat as a B次元官网网址渢ax on everyday AmericansB次元官网网址� and target specific supply chains or states that will be critical to Trump in the midterm elections in two years time.

But the midterms, set for November 2026, also give Trump a long runway. The U.S. is still bearing some of the costs of tariffs from TrumpB次元官网网址檚 first term, such as those levied on Chinese imports which President Joe Biden didnB次元官网网址檛 remove.

B次元官网网址淭hey can go deep, they can go long. ItB次元官网网址檚 really how much the American consumer is willing to tolerate in terms of the affordability prices theyB次元官网网址檙e facing because this will up costs,B次元官网网址� Holmes said.