Liberal leadership race heats up as Freeland and Carney propose strategies to counter US trade threats
Chrystia Freeland, a Liberal leadership candidate, stated Monday that Canada can prevent massive US tariffs on Canadian goods by unsettling American exporters, as reported by BNN Bloomberg.
Freeland called on the federal government to compile a $200bn list of retaliatory tariffs to prepare for US President Donald Trump's potential imposition of 25 percent tariffs on Canadian imports.
She emphasized the need for Ottawa to immediately consult with industry and draft a detailed, dollar-for-dollar retaliation plan. The plan should target prominent American exports, such as Florida oranges, Wisconsin dairy products, and Michigan dishwashers.
“Donald Trump is using uncertainty to unsettle Canadians. We must do the same,” Freeland said in an emailed statement to supporters. “US exporters need (to) worry whether their businesses will be the ones we hit.”
Freeland, aiming to position herself as the Liberal candidate most capable of handling Trump, also proposed a “buy Canadian” approach.
Her plan would include limiting US access to Canadian government procurement, with defence-related goods as the only exception.
Meanwhile, Mark Carney, another Liberal leadership contender, told Radio-Canada over the weekend that Canada should keep the option of cutting Quebec’s hydro exports to the US as a potential response. However, he noted this would not be his first action.
Trump has recently suggested that 25 percent tariffs on Canadian exports to the US could be introduced as soon as February 1.
Prime Minister Justin Trudeau, speaking on Parliament Hill last Thursday, said his government is prepared to respond if the tariffs are implemented. He stressed that every option is under consideration and reaffirmed the government’s priority to avoid the tariffs entirely.
“Our efforts are first and foremost to make sure that tariffs don’t come on Canada,” Trudeau said.
“If they do move forward on tariffs, we are ready to respond in a strong way, but in a way that will be stepping up gradually with one goal ... to figure out how to get them removed as quickly as possible.”
Ottawa has kept its full list of retaliatory countermeasures confidential. Instead, it has focused on appealing directly to American consumers by highlighting how tariffs could lead to increased prices.
Liberal leadership candidates face a tight deadline to sign up party members eligible to vote in the race.
The membership cutoff is Monday at 5 pm, and candidates must submit a $50,000 non-refundable entry fee by Thursday.
