By Paul Vieira

OTTAWA-Canadian Prime Minister Justin Trudeau reiterated his willingness to retaliate forcefully against a 25% U.S. tariff on all Canadian imports, with the government ready to provide financial support to households and businesses to deal with the consequences.

"Our focus is remaining calm, remaining strong and responding as necessary to actions by the U.S.," he told reporters Tuesday at a cabinet retreat in western Quebec. "Our response will be robust, and rapid, and measured, and very strong."

Officials are eyeing potential tariffs on up to $150 billion of U.S. products as a possible response in a trade row with Washington. He said tariffs on U.S. goods and services entering Canada would likely crimp consumers and businesses, and the government is ready to alleviate that stress with financial support.

Canadian officials and business leaders were initially relieved earlier Monday when it became clear the Trump administration wasn't going to impose 25% tariffs on Canadian goods on Day One of its term. Later Monday evening, anxiety returned after President Trump said from the Oval Office that the U.S. could slap 25% duties on imports from Canada and Mexico starting Feb. 1, citing inadequate border security to limit the flow of illegal drugs and migrants into the U.S.

"Trump is, as always, a skilled negotiator and will do what he can to keep his negotiating partners a little bit off balance," said Trudeau, with several cabinet ministers standing behind him.

In an executive order, Trump directed federal agencies to evaluate trade policies and economic relationships with China and North American neighbors, and prepare reports by April 1. And he directed federal agencies to alleviate persistent U.S. trade deficits and confront what he calls unfair trade and currency policies by other nations. He is focused on China, Canada and Mexico, directing agencies to assess compliance with the U.S.-Mexico-Canada Agreement and a 2020 trade deal with China.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

01-21-25 1018ET