Justin Trudeau says Canada is ready to respond with counter-tariffs against the US if President-elect Donald Trump follows through on his threat to begin a trade war in North America.

Canada is preparing to retaliate with an exhaustive list of tariffs on American goods if President-elect Trump follows through with his plans to add a steep 25% import tax on Canadian exports, people familiar with the matter told CNN.

Canada's outgoing Prime Minister Justin Trudeau on Sunday suggested that President-elect Donald Trump's remarks about Canada becoming America's “51st state” has distracted attention from the harm that steep tariffs would inflict on U.

President-elect Donald Trump’s rhetoric around Canada becoming a 51st state is a distraction from the economic impact a trade war will have on American workers and businesses, Prime Minister Justin Trudeau charged Sunday.

Canada’s trade surplus with the US widened as did its deficit with the rest of the world, underscoring the major role its biggest trading partner and southern neighbor plays in its economy.

Eliminating interprovincial trade barriers could result in countless benefits for Canadians and reduce Canada’s over-reliance on the American market as Donald Trump threatens tariffs.

Canadian Prime Minister Justin Trudeau said Canada will respond with counter-tariffs if U.S. President-elect Donald Trump follows through on his threat to impose tariffs on all Canadian imports. In an interview on MSNBC’s Inside With Jen Psaki,

Canada is drawing up plans for extensive tariffs against US products if Donald Trump follows through on his threat to put 25% levies on Canadian goods, according to people familiar with the matter.

Canada is considering retaliatory tariffs on US goods like orange juice, ceramics, and steel in response to Trump's 25% tax threat, aiming to target key products while minimizing impact on Canadian consumers.

The items under Canada's consideration include ceramics, steel and furniture, etc. US energy exports could be targeted as a ‘last resort’, officials said.