We urge Canada to respond to President Trump’s tariffs on Canadian goods with a clear, fair countermeasure if talks with the Trump Administration do not produce an acceptable agreement before the August 19, 2026 tariffs take effect. Canada is already negotiating to avoid those added tariffs and to eliminate or significantly reduce the existing tariffs on steel, aluminum, autos, and softwood lumber. If those efforts fail, we believe Canada should act.

Our proposal is, in lieu of tariffs on additional US products, an excise tax on all sales of electricity, natural gas, oil, uranium, potash, and minimally processed timber/logs* shipped to the United States. That tax should be at least 20%, and it should go as high as the level of any tariff imposed by the Trump Administration. Canada should have the discretion to set the amount for each product, so the response is targeted and effective.

We also ask that the revenue from this excise tax be shared with the affected provinces. The provinces should receive 50% if they agree to apply it to health care, an additional 25% if they agree to apply it to affordable housing, and another 25% if they agree to apply it to education. That way, the response does not just defend Canada’s interests abroad; it also helps support the services and future our communities depend on at home.

*Minimally processed timber/logs are not subject to the current U.S. anti-dumping, countervailing, or Section 232 softwood lumber tariffs that apply to finished lumber shipped to the United States. This gives U.S. domestic customers very low-cost lumber when the logs are milled in the United States. Canada should not allow this imbalance to continue without a strong, measured response.