Trump's tariff threats are not softening! Canada plans to impose retaliatory tariffs on U.S. goods.

A source familiar with the matter said on Thursday that if President-elect Trump follows through on his threat to impose a 25% tariff on all Canadian products, Canada is considering retaliatory tariffs on American orange juice, toilets, and some steel products. The official stated that this broad list has not been finalized yet. This week, Trump stated that he plans to use economic coercion to make Canada the 51st state of the United States. He continues to incorrectly view the trade deficit between the US and Canada as a subsidy. Canada is a country rich in natural resources, providing bulk commodities such as oil to the US. Outgoing Canadian Prime Minister Trudeau stated that Trump is trying to distract attention from the threat of imposing high tariffs by talking about making Canada the 51st state. Trudeau said: "President Trump is a very skilled negotiator, and his talks have to some extent diverted people's attention." "If he continues to impose these tariffs, all goods US consumers buy from Canada will suddenly become more expensive. This is something we need to pay more attention to." Trudeau made these remarks during an interview at the funeral of the late US President Jimmy Carter in Washington. When Trump raised tariffs during his first term, other countries also imposed retaliatory tariffs. For example, Canada announced in 2018 that it would impose billions of dollars in new tariffs on the US in retaliation for new taxes imposed on Canadian steel and aluminum. Trudeau said: "We will certainly respond as we did a few years ago." In 2018, dairy from Wisconsin (home state of Republican leaders Paul Ryan and Mitch McConnell) and whiskey from Kentucky were hit with a 10% tariff. Florida, Trump's home state, is known for its citrus production. Trump again claimed on Thursday that the US does not need anything from Canada, including oil. Nearly a quarter of the oil consumed by the US each day comes from Canada, with Alberta exporting 4.3 million barrels of oil to the US every day. According to the US Energy Information Administration, the US consumes about 20 million barrels of oil per day, while domestically producing about 13.2 million barrels per day. " We don't need their energy. We don't need their oil and gas," Trump said. "We don't need anything they have." Doug Ford, Premier of Ontario, the most populous province in Canada, said Trump mistakenly believes the US doesn't need Canadian products. The automotive industry supply chains are closely connected, with components produced in Ontario used to assemble cars in Detroit that are then sold back to Canada. Ford noted that in just the automotive industry, components can cross the border multiple times between Canada and the US. Ford warned that if Trump imposes tariffs, Canada will retaliate. He said there are various US products shipped to Canada, but he refused to disclose specific products. Senior Canadian government officials said Trump's comments about Canada becoming the 51st state are no longer a joke, but are intended to disrupt America's closest ally. "The joke is over," said Dominic LeBlanc, Canada's Minister of Finance and responsible for US-Canada relations, on Wednesday. "I think it's a way to sow chaos, stir up the populace, and create chaos because he knows this will never happen." LeBlanc has been discussing a $1 billion plan to enhance border security with incoming Trump administration officials, in an effort to defuse Trump's tariff threats. Trudeau called this a victory for Trump. Canada is the largest export destination for 36 US states. Goods and services worth nearly $3.6 billion Canadian dollars ($2.7 billion US dollars) cross the border each day.