As the Trump administration plans to impose additional tariffs on Canada in January, many Canadians are wondering about the best approach to influence a change in direction.
The query implies that there are effective strategies to sway U.S. President Donald Trump’s decisions — indicating that if Canada retaliates strongly or shows readiness to endure consequences, policy changes could be achieved.
Christopher Ragan, the founding director of McGill University’s Max Bell School of Public Policy and former chair of Canada’s Ecofiscal Commission, stated, “Canada is engaged in negotiations with a party that appears erratic and volatile, so the outcome remains uncertain.”
Don Drummond, ex-chief economist for TD Bank, affirmed that if Canadians are prepared to face repercussions, there are numerous ways to push back against the U.S.
Prime Minister Mark Carney criticized U.S. President Donald Trump’s new 50 percent tariffs as a ‘miscalculation,’ emphasizing Canadian unity and sovereignty.
Drummond suggested, “You target what they value most. They have clearly indicated that their primary interest from Canada is oil, and possibly electricity for a period.”
“In the past, we have levied export taxes on oil and natural gas, a measure we could reintroduce. Additionally, we could implement quotas,” he added.
Canada holds significant leverage in energy and fertilizer. In 2025, Canadian commodities constituted a large portion of U.S. oil, electricity, natural gas, and potash imports.
Exploring Non-Tariff Options
While Canada is still developing its critical mineral reserves, Drummond proposed notifying the U.S. that they would not receive preferential access once these reserves are operational.
“We could also limit American entry into Canada. In extreme cases, we could demand visas and restrict access,” Drummond suggested.
Moreover, Canada could opt not to purchase F-35 fighter jets from the U.S., choosing the Gripen from Sweden instead.
Canadian entities currently hold around $459.6 billion USD in U.S. treasury bonds, and divesting from these assets could impact U.S. long-term bond yields.