Canada is preparing to respond to President Trump's proposal to impose a 25% tariff on Canadian exports to the US by considering a list of the US goods that could face retaliatory tariffs.

Last November, Trump claimed to consider introducing new tariffs on nearly all Canadian imports, along with similar measures against Mexico and China. These tariffs on Canada could drive steel prices up by US$100-$150 per short ton. Recently, Trump reaffirmed his stance by stating he has no plans to reduce tariff proposals.

In 2018, following US tariffs on Canadian steel and aluminum, Canada retaliated by imposing tariffs on US imports valued at CAD 16.6 billion.