Canada’s Trump Tariff Response Plan?…Hurt to America and Red States?….

Donald Trump HAS been throwing around Tariff/Import taxes threats…

The whole story has been around Trump…

But quietly?

Canada is planning an answer should Trump actually be stupid enough to try to drop 20% taxes on Canadian good’s  that American’s buy…..

This COULD get REAL SERIOUS….

For BOTH Countries….

And COULD spell a path for other countries to follow against Trump….

Especailly with a America worried about consumer prices?

Orange juice from Florida. Whiskey from Tennessee. Peanut butter from Kentucky.

Canada is preparing for an all-out trade war with its closest ally and one of its top trading partners, and the list of American goods that could be affected is long.

Canadian officials are preparing a three-stage plan of retaliatory tariffs and other trade restrictions against the United States, which will be put into motion if President-elect Donald J. Trump makes good on his threat to impose a blanket 25 percent tariff on all Canadian goods imported into the United States.

Canadian officials will wait until Mr. Trump has made his move — which he has said will be on his first day in office, Monday — and then start with imposing tariffs. They would mostly affect consumer goods worth 37 billion Canadian dollars ($25.6 billion), according to two senior government officials familiar with the plans….

Goal: Maximum political pain

The Canadian officials said their choice of goods was meant to be precisely targeted and aimed at political impact. They specifically want to focus on goods made in Republican or swing states, where the pain of tariffs, like pressure on jobs and the bottom lines of local businesses, would affect Trump allies….

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The detailed list of goods is closely held, but it includes dozens of consumer goods from various categories, such as food and beverages, as well as other types of daily products, including dishwashers and porcelain goods like bathtubs and toilets.

Depending on what Canadian goods Mr. Trump chooses to impose tariffs on, and the level of those tariffs, Canada’s second move would be to expand its own tariffs to more American products, impacting 150 billion Canadia…

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Back from the brink

No matter how Canada’s counter tariffs or export restrictions are deployed, the goal will be the same: to pressure the Trump administration to step back from the president-elect’s vow to launch a devastating trade war on the United States’ neighbor.

The trading relationship between the two countries is enormous, with nearly $1 trillion in goods exchanged every year. Canada fluctuates with Mexico as the United States’ biggest trading partner depending on the price of oil.

Some cross-border industries are so integrated that tariffs would suddenly pose a major regulatory headache for many companies. A single vehicle, for example, crosses the U.S.-Canadian border up to eight times before it is fully assembled. Tariffs would immediately disrupt auto assembly lines across the United States and in Ontario, the auto industry’s heart in Canada….

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The government is preparing for the possibility of financial bailouts for Canadian businesses that are badly hit by the U.S. tariffs, most likely on a case-by-case basis, the official said.

While mass bailouts or blanket funding for entire industries may not be on the table, the official said it would be unthinkable to allow a tariff war with the United States to wipe out thousands of jobs and businesses without the government stepping in to mitigate the blow.

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