TORONTO (AP) — Canada is already examining possible retaliatory tariffs on certain items from the United States should President-elect Donald Trump follow through on his threat to impose sweeping tariffs on Canadian products, a senior official said Wednesday.

Trump has threatened to impose tariffs on products from Canada and Mexico if the countries don’t stop what he called the flow of drugs and migrants across southern and northern borders. He said he would impose a 25% tax on all products entering the U.S. from Canada and Mexico as one of his first executive orders.

A Canadian government official said Canada is preparing for every eventuality and has started thinking about what items to target with tariffs in retaliation. The official stressed no decision has been made. The person spoke on condition of anonymity as they were not authorized to speak publicly.

When Trump imposed higher tariffs during his first term in office, other countries responded with retaliatory tariffs of their own. Canada, for instance, announced billions of new duties in 2018 against the U.S. in a tit-for-tat response to new taxes on Canadian steel and aluminum.

Many of the U.S. products were chosen for their political rather than economic impact. For example, Canada imports $3 million worth of yogurt from the U.S. annually and most comes from one plant in Wisconsin, home state of then-House Speaker Paul Ryan. That product was hit with a 10% duty.

Another product on the list was whiskey, which comes from Tennessee and Kentucky, the latter of which is the home state of then-Republican Senate leader Mitch McConnell.

Trump made the threat Monday while railing against an influx of illegal migrants, even though the numbers at Canadian border pale in comparison to the southern border.

The U.S. Border Patrol made 56,530 arrests at the Mexican border in October alone — and 23,721 arrests at the Canadian one between October 2023 and September 2024.

Canadian officials say lumping Canada in with Mexico is unfair but say they are happy to work with the Trump administration to lower the numbers from Canada. The Canadians are also worried about a influx north of migrants if Trump follows through with his plan for mass deportations.

Trump also railed about fentanyl from Mexico and Canada, even though seizures from the Canadian border pale in comparison to the Mexican border. U.S. customs agents seized 43 pounds of fentanyl at the Canadian border last fiscal year, compared with 21,100 pounds at the Mexican border.

Canadian officials argue their country is not the problem and that tariffs will have severe implications for both countries.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports are from Canada. Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.

“Canada is essential to the United States’ domestic energy supply,” Deputy Prime Minister Chrystia Freeland said.

Trump has pledged to cut American energy bills in half within 18 months, something that could be made harder if a 25% premium is added to Canadian oil imports. In 2023, Canadian oil accounted for almost two-thirds of total U.S. oil imports and about one-fifth of the U.S. oil supply.

Prime Minister Justin Trudeau is holding a emergency virtual meeting on Wednesday with the leaders of Canada’s provinces, who want Trudeau to negotiate a bilateral trade deal with the United States that excludes Mexico.

Mexican President Claudia Sheinbaum said Wednesday that her administration is already working up a list of possible retaliatory tariffs “if the situation comes to that.”

• The U.S. has imposed sanctions on 21 more allies of Venezuelan President Nicolás Maduro for repressing Venezuelans following the country’s disputed presidential election.
• Maduro declared victory in the election, but he and his government have refused to show vote tallies backing his claim.
• The Biden administration last week recognized Venezuelan opposition candidate Edmundo González as Venezuela’s “president-elect.”

The United States has imposed sanctions on an additional 21 allies of President Nicolás Maduro, accusing them on Wednesday of perpetrating some of the repression with which officials in Venezuela responded to July’s disputed presidential election.

The security and cabinet-level officials sanctioned by the Department of the Treasury include the head of the nation’s corrections agency, the director of an intelligence service and the minister of Maduro’s Office of the President. They joined a list of dozens of sanctioned Venezuelans that includes the head of the country’s high court, ministers and prosecutors.

BIDEN URGED TO CRACK DOWN ON OIL COMPANIES DOING BUSINESS WITH VENEZUELA AFTER MADURO’S REFUSAL TO CEDE POWER

The Biden administration last week recognized Venezuelan opposition candidate Edmundo González as that nation’s “president-elect.” The U.S. also on Wednesday placed visa restrictions on additional individuals it accused of repressing Venezuelans after the July 28 election.

While Maduro declared victory in the election, he and his government have refused to show vote tallies backing his claim.

González left Venezuela in September for exile in Spain after a warrant was issued for his arrest in connection with an investigation into the publishing of vote tallies. The former diplomat, who represented the main opposition parties, claimed to have won the presidential election by a wide margin.

In September, the U.S. government imposed sanctions against 16 allies of Maduro, accusing them of obstructing the vote and carrying out human rights abuses.

The effect of the individual sanctions and visa restrictions announced Wednesday is unclear. Previously punished Maduro loyalists still hold power in Venezuela’s government.

Venezuelan lawmakers on Tuesday continued the debate over a bill that would catalogue economic sanctions as a crime against humanity and allow the prosecution of anyone who expresses support for the measures.

The administration of United States President Joe Biden is reported to have provisionally approved a $680m arms package to Israel, even as it asserts that it is pushing for peace in the Middle East.

Reports of the arms deal on Wednesday come a day after Biden announced a ceasefire between Israel and Hezbollah and promised to renew efforts to reach a similar agreement between Israel and Hamas in Gaza – one he has repeatedly promised but failed to deliver.

The arms package had been in the works for months and had been previewed by congressional committees in September and submitted for wider review in October, an unnamed US official told the Reuters news agency, which confirmed an earlier report by the Financial Times on Biden’s provisional approval.

The latest delivery will include hundreds of small-diameter bombs and thousands of joint direct attack munition kits (JDAMs), both news organisations reported. JDAMs convert “dumb” bombs into precision-guided weapons.

The Biden administration has not confirmed the reports, the timing of which highlights the juxtaposition of the US position on the Middle East conflict – on the one hand facilitating ceasefire negotiations while on the other hand selling billions of dollars of munitions to Israel as it kills tens of thousands of Palestinians and Lebanese.

On Tuesday, Biden – who has consistently supported Israel and portrays US arms sales to Israel as essential support for an ally – held an address at the White House announcing that a US-brokered ceasefire that would see Israel withdraw from Lebanon within 60 days had been reached. That deal went into effect early on Wednesday.

During the address, Biden promised to again seek an end to the fighting that has raged in Gaza since October 7, 2023.

For months, previous attempts by Washington to broker a deal have come up short with critics accusing Washington of failing to exert its most meaningful leverage – withholding some of the billions of dollars in arms it provides to Israel.

To date, Israel has killed at least 44,282 Palestinians in Gaza since the war began when a Hamas-led attack on southern Israel killed at least 1,139 people. Israeli forces have killed more than 3,800 people in Lebanon in the past 13 months.

“Over the coming days, the United States will make another push with Turkey, Egypt, Qatar, Israel and others to achieve a ceasefire in Gaza with the hostages released and the end to the war without Hamas in power – that it becomes possible,” Biden said.

Questions over weapons

The latest weapons package would have been blocked as part of legislation introduced by several Democratic senators to stop about $20bn in arms sales to Israel, the Financial Times reported. However the effort, led by Senator Bernie Sanders, fell short of votes this month.

For their part, US officials have repeatedly denied that delays in some arms transfers have been related to Israel’s actions beyond a pause this year of a shipment of 900kg (2,000lb) bombs in a fruitless effort to prevent Israel from launching a major ground operation in Rafah.

Speaking to reporters after Biden’s speech, a US official denied that either withholding or promising more weapons to Israel was part of negotiations that eventually led to the Israel-Hezbollah agreement.

The official said: “No part of this negotiation involved weapons on either side.”

However, Israeli Prime Minister Benjamin Netanyahu on Tuesday appeared to offer a contradictory account, saying the ceasefire with Hezbollah was needed to “replenish stocks”, among other reasons.

“And I say it openly: It is no secret that there have been big delays in weapons and munitions deliveries. These delays will be resolved soon,” Netanyahu said during a national address without specifically naming the US.

“We will receive supplies of advanced weaponry that will keep our soldiers safe and give us more strike force to complete our mission.”

Continued support before Trump’s return

Advocates said the latest approval from the Biden administration indicates there will be little change in the president’s policy before President-elect Donald Trump takes office on January 20.

In a post on X, the Institute for Middle East Understanding Policy Project said the move shows “President Biden is spending the final days of his presidency going against the will of most Americans, US law, and international law.”

It noted that the small-diameter bombs and JDAMs reportedly provided in the package have been linked to Israeli attacks on civilians in Gaza.

The Biden administration has also been one of the most vocal critics of the International Criminal Court’s (ICC’s) decision last week to issue arrest warrants for Netanyahu and former Defence Minister Yoav Gallant for alleged war crimes committed in Gaza. The ICC also issued a warrant for Hamas leader Mohammed Deif, who Israel said it has killed.

In a statement, Biden called the warrants against the Israeli officials “outrageous” and promised to “always stand with Israel against threats to its security”. Netanyahu’s office on Tuesday said it would appeal the court’s ruling.

Trump is expected to take a more provocative stance against the ICC – and in his overall support for Israel – after he takes office with his Republican Party in control of both the US House of Representatives and Senate after the November 5 elections.

Trump’s pick for national security adviser, Representative Mike Walz, has already promised a “strong response” to the ICC and the United Nations “come January”.

Republican Senator Lindsey Graham went further, promising during a trip to Israel on Wednesday to introduce legislation that “would sanction any country that tried to enforce the arrest warrant against Israel”.

“You could be a close ally – Canada, Britain, France, you name it – [but] if you buy into this arrest warrant as legitimate, then you’re going to meet stiff, bipartisan resistance in America,” Graham said. “So, to the world, if you empower this folly at the ICC, then you will have a hard time doing business in America and coming to America.”

Netanyahu’s office confirmed that Graham had met with the Israeli leader during the trip.

The prime minister’s office said Graham “updated him on the efforts that he is advancing in the US Congress against the ICC and countries that have cooperated with it”.