Canada is considering several ways to pressure the United States as their trade dispute intensifies, including dollar-for-dollar retaliatory tariffs proposed by Prime Minister Mark Carney. The preliminary list could cover steel, dairy products, household appliances, farm machinery, electronics, pulp and paper, although it has not been finalized. Canada sends about 70 percent of its goods to the United States, while Canada is a major market for products from 26 US states and among the top three buyers for 45 states.

Carney said Canada supplies a large share of US imported natural gas and electricity, as well as about 60 percent of US crude-oil imports. Energy is not currently on Canada’s retaliation list, but political leaders say the option remains open. Ontario Premier Doug Ford has raised a possible energy surcharge and also cited Canada’s importance as a supplier of potash and critical minerals such as lithium, nickel and graphite.

Canadian provinces have already removed US alcohol from many store shelves, with official data showing US wine exports to Canada fell 78 percent annually. Carney said a threatened 50 percent US tariff on Canadian vehicles and parts after January 1 would hurt American workers dependent on Canadian buyers.