Canada preparing retaliatory tariffs to unveil as soon as Trump's inauguration day

The Trudeau government is planning a first round of counter-tariffs that could be unveiled as soon as incoming U.S. president Donald Trump is sworn in on Monday, Radio-Canada has confirmed.

The counter-tariffs would apply to $37 billion in goods that would be less harmful to the Canadian economy. 

Trump has threatened to levy a 25 per cent across-the-board tariff on Canadian goods. Experts and lawmakers have warned such a move would be devastating for the Canadian economy.

The Canadian government is also preparing additional retaliatory tariffs that would cover up to $110 billion, depending on the Trump administration's actions. Those could potentially be more damaging to the Canadian economy.

The initial retaliation could come as soon as Monday if Trump enacts them after he's sworn in. A period of consultation between 15 and 30 days would be required before the tariffs take effect.

WATCH | Trudeau says Canada is ready to fight back against tariffs: 

‘Everything is on the table,’ PM says at meeting of Canada-U.S. relations council

15 hours ago

Duration 1:15

Prime Minister Justin Trudeau met with a newly created Canada-U.S. relations council on Friday in Toronto as steep U.S. tariffs could come as soon as Monday. The members, including representatives from the auto sector, unions, industry and agriculture, have ties to the U.S. that will help navigate what’s to come, Trudeau said.

On Friday, Prime Minister Justin Trudeau met with his newly created Canada-U.S. relations council in Toronto, which he assembled to support the federal government as it deals with Trump's tariff threat. The 18-member council includes representatives from the auto sector, unions, industry and agriculture.

"If the incoming administration moves forward with tariffs, we will not hesitate to act," Trudeau said at the outset of the meeting. "We will respond ... everything is on the table."

Trudeau added that if the "worst-case scenario" of a trade war happens, Canada must demonstrate there are no winners in a trade fight, while supporting those who are most affected by the tariffs.

"If one region or one industry ends up carrying a larger burden of defending Canadians, we will make sure that all Canadians step up to support that region or industry. We're in this together."

Speaking with reporters in Washington, D.C., Foreign Affairs Minister Mélanie Joly said the U.S. lawmakers she's been talking to are "not only surprised, they are very worried" about the possibility of a trade war and its impact.

"A lot of senators have never heard of this Trump tariff tax," she said.

"There is a level disorganization that is happening in any transition.… People in Washington are settling in and so this is all new information. So I think we still have a case to make."

• This Sunday, Cross Country Checkup is asking: What does another Trump presidency mean to you? How seriously are you taking his tariff threats? Fill out this form and you could appear on the show or have your comment read on air.