Canada Plans to Retaliate

“I support the principle of a dollar-for-dollar response,” Mr. Trudeau said.

Good Morning!

Here are today’s highlights:

• China, meanwhile, starts any trade war with a trillion-dollar advantage.

• Rob Levin says big media fails to understand small businesses, the backbone of our economy.

• A San Francisco store that sells only ducks says it is profitable and preparing to franchise.

• Our housing stock may be worth a lot less than we think it is.

INTERNATIONAL TRADE

Canada is preparing to retaliate: “Canada is assembling a list of measures, including tariffs on U.S. exports to Canada and levies or other restrictions on key Canadian exports to the United States, if Mr. Trump imposes a sweeping 25 percent tariff on Canadian goods. But the government made clear that it will wait to see what Mr. Trump might do before responding. ‘Everything is on the table,’ Prime Minister Justin Trudeau said during a news conference in Ottawa, flanked by senior members of his government and the leaders of most of Canada’s provinces and territories. Mr. Trudeau spent most of Wednesday discussing with provincial leaders how to best prepare for potential U.S. tariffs.”

• “The president-elect has repeatedly spoken about Canada becoming another U.S. state, even threatening economic force to annex the country. Mr. Trump has argued that Canada has a trade surplus with the United States, while the United States provides important defense guarantees to Canada, to make a case that the relationship favors Canada and that the imbalance needs to be addressed. Mr. Trump’s comments have been met with incredulity and outrage among Canadian political leaders.”

• “Any tariffs would violate a trade agreement among the United States, Mexico, and Canada, originally known as NAFTA (North American Free Trade Agreement), which was renegotiated during Mr. Trump’s first presidency. It is scheduled to be renewed next year, but the introduction of tariffs by any country would violate the agreement, potentially rendering it moot.”

• “‘I support the principle of a dollar-for-dollar response,’ Mr. Trudeau said.” READ MORE