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'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.

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.

Canadian CEOs are being asked for feedback as Canada plans to levy a tranche of retaliatory tariffs against the United States if President-elect Donald Trump makes good on his threat to apply 25% tariffs against Ottawa.

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.