Chrystia Freeland Unveils $200 Billion Retaliation Plan Against Trump’s Trade Threats
Liberal Leadership Contender Calls for Coalition to Counter U.S. Trade Measures
Chrystia Freeland, a leading contender for the Liberal leadership, has unveiled a bold strategy to counter potential trade actions from former U.S. President Donald Trump. Her proposed plan includes a $200 billion retaliation list targeting American goods, aiming to send a clear message that Canada will not be bullied on the economic front.
The proposal, released Monday, outlines an aggressive dollar-for-dollar tariff strategy should Trump move forward with restrictive trade policies against Canada. Additionally, Freeland is advocating for an international coalition of nations impacted by Trump’s economic threats, including Mexico, Denmark, Panama, and the European Union (EU).
Freeland’s Tough Stance on U.S. Trade Threats
Freeland emphasized the importance of preemptive action, urging the federal government to publish a detailed list of American products that could face retaliatory tariffs. This approach, she argues, would serve as a warning shot, demonstrating that any attempt to undermine Canada’s economy will come with significant consequences.
“Being smart means retaliating where it hurts,” Freeland stated. “If President Trump imposes 25 percent tariffs, our counterpunch must be dollar-for-dollar — and it must be precisely and painfully targeted.”
Her plan aligns with her broader campaign message of economic resilience and strong leadership on the global stage. As the former foreign minister who played a key role in renegotiating NAFTA, Freeland is positioning herself as the candidate best equipped to handle trade disputes with Trump.
Canada’s Diplomatic Approach vs. Freeland’s Hardline Strategy
While Freeland pushes for an immediate counteroffensive, the current Liberal government, led by Foreign Affairs Minister Mélanie Joly, is still pursuing diplomatic channels to deter Trump from imposing tariffs. Joly remains optimistic that strategic negotiations can prevent economic conflict.
“We believe diplomacy can work, and that’s why we’re having conversations. We won’t negotiate in front of the public,” Joly said, pushing back against Freeland’s call for a public retaliation list.
However, she assured that if Trump follows through on his threats, Canada will be prepared to respond on day one.
Trump’s Misleading Trade Deficit Claims
Trump has repeatedly justified his protectionist policies by claiming that the United States is subsidizing Canada, citing a supposed trade deficit. However, U.S. government data contradicts his assertions.
While Trump recently claimed a $200 billion trade deficit, official figures indicate that the U.S. trade deficit with Canada was actually $55 billion USD as of November 2024. The discrepancy is largely due to the way U.S. imports of Canadian oil are factored into trade balances. Despite this, Trump continues to push the narrative that Canada is “ripping off” the U.S.
Building an International Coalition Against Trump’s Policies
Beyond economic retaliation, Freeland is advocating for a global alliance of nations targeted by Trump’s trade and foreign policy threats. She proposes an international summit involving Mexico, Denmark, Panama, and the EU to coordinate responses to potential U.S. economic aggression.
Trump has previously threatened Mexico and the EU with heavy tariffs, and has even suggested the possibility of forcibly annexing Greenland, a Danish territory. Similarly, the Panama Canal has been a point of contention, with Trump implying greater U.S. control over the crucial shipping route.
“Trump thinks we are for sale and that he can push us around. This is a serious moment that demands a serious plan to fight for Canada,” Freeland stated, reinforcing her commitment to standing firm against U.S. economic pressure.
What’s Next?
With Trump’s potential return to the White House looming, Canada’s trade future remains uncertain. Joly is set to meet with U.S. Secretary of State Marco Rubio on Wednesday, seeking further clarity on Trump’s trade policies. Meanwhile, Freeland continues to make economic resilience a central theme of her leadership campaign.
As the Liberal leadership race heats up, Freeland’s hardline approach to Trump’s trade threats could resonate with voters seeking strong leadership on economic and international affairs. Whether Canada takes a diplomatic or confrontational approach remains to be seen, but one thing is certain—Trump’s trade policies will be a defining issue in the months ahead.
Source : The Canadian Press
