With the looming threat of increased tariffs from the Trump administration in January, many Canadians are pondering what strategies can be employed to influence a change in direction. The notion suggests that concrete actions could potentially sway U.S. President Donald Trump’s decisions, indicating that Canada’s response could lead to a policy shift.
According to Christopher Ragan, the founding director of McGill University’s Max Bell School of Public Policy and former chair of Canada’s Ecofiscal Commission, navigating negotiations with an unpredictable and volatile party like the U.S. poses challenges with uncertain outcomes.
Don Drummond, former chief economist for TD Bank, highlighted that Canada could retaliate against the U.S. in various ways if Canadians are prepared to endure the repercussions. He emphasized targeting areas deemed crucial by the U.S., such as oil and electricity, as potential leverage points.
Canada holds substantial leverage in energy and fertilizer, with Canadian commodities accounting for a significant portion of oil, electricity, natural gas, and potash imported into the U.S. in 2025. Exploring non-tariff options, such as signaling restrictions on critical mineral reserves or adjusting procurement decisions like the F-35 fighter jets, could also be strategic moves.
However, economists caution that while implementing non-tariff measures may impact the U.S. economy, the consequences could be more detrimental to Canada. Trevor Tombe from the University of Calgary’s School of Public Policy emphasizes the need for a strategic approach that balances short-term responses with long-term economic sustainability.
Amid discussions on potential actions, Wolfgang Alschner from the University of Ottawa underscores the importance of considering the broader implications of any retaliatory measures. He highlights the necessity of evaluating the costs and benefits of each step taken in the trade dispute with the U.S.
In analyzing the situation, experts suggest that Canada should focus on trade expansion and diversification while strengthening domestic industries. By capitalizing on partnerships with other global trading partners facing similar challenges with the U.S., Canada can leverage collective efforts to navigate the trade landscape more effectively.
While the economic aspects of the trade conflict are crucial, the underlying issue of safeguarding Canada’s sovereignty also plays a vital role in shaping responses. The debate extends beyond economic rationale, with considerations for national autonomy and the need to address threats to sovereignty in a strategic and resolute manner.