Ottawa avoids food and key components to limit impact on Canadians
Canada will not impose retaliatory tariffs on essential U.S. goods such as food or industrial components critical to domestic jobs, according to federal trade advisers David MacNaughton and Senator Hassan Yussuff. Their comments came just ahead of President Donald Trump’s expected announcement of sweeping new tariffs from the White House Rose Garden.
Prime Minister Mark Carney has paused his campaign to return to Ottawa for emergency cabinet meetings. While he reiterated that Canada will respond if further measures are imposed, he emphasized a “judicious approach” to retaliation that minimizes harm to Canadians while targeting U.S. political and business allies.
Strategic retaliation, not dollar-for-dollar tariffs
Canada’s response will not match U.S. tariffs dollar for dollar. Instead, Ottawa is preparing a smarter retaliation strategy targeting areas that will hurt Trump politically without raising costs for Canadian families.
“If people are buying food, why would you hit them?” said Yussuff, adding that essential imports like nutrition-related goods should be spared. MacNaughton stressed that tariffs must focus on “real pain points for Trump” while sparing Canada’s own economy.
Canada has already imposed tariffs worth $60 billion and has prepared a list of 4,000 U.S. products worth $155 billion as potential targets. Final decisions are expected by Thursday following cabinet deliberations.
Autos likely spared to protect Ontario economy
Despite U.S. threats of 25% tariffs on Canadian autos and critical minerals, sources say Ottawa is unlikely to retaliate with auto-sector tariffs due to the risk of massive job losses in Ontario. The province’s auto industry employs over 500,000 Canadians and is tightly integrated with U.S. supply chains.
Ontario Premier Doug Ford appeared on U.S. television to plead with lawmakers to oppose the tariffs, warning that “termination day” was a more apt description than Trump’s so-called “Liberation Day.” Ford said U.S. plants reliant on Canadian materials will be forced to close and urged deeper cooperation between the two countries.
Canada stands firm on non-negotiable values
Carney reaffirmed that language, culture, and agricultural supply management are off the table. “The French language is off the table. Supply management is off the table. Culture is off the table.”
Meanwhile, coordination is ongoing with Mexico, with Carney speaking to President Claudia Sheinbaum to strategize on joint trade responses. Analysts note that Ottawa has prepared for this moment, with months of scenario planning underway since Trump’s return to office.
Trump has already imposed tariffs on steel, aluminum, and global auto imports, with additional levies on Canadian imports and energy looming unless Ottawa curbs fentanyl flow and illegal migration. The White House is reportedly planning up to 20% tariffs on nearly all U.S. trading partners.