Trump’s threats to Canada may be repulsive, but they are unfortunately very real. …This is a time for aggressive leadership. Policymakers focused on “win-wins” or reactive strategies must rethink their approach. …Canada produces many products and services upon which the United States depends. Canadian goods generate enormous “consumer surplus” for Americans, all of which could be lost if the price of these goods rises. The 25% tariff threats are troubling for Canadians, but they are equally alarming for those in the U.S. who rely on Canadian products. …Canada should impose an export tax of US$800/MBF, effectively doubling the price. This move would immediately increase the cost of lumber in the U.S., making the risks of a trade war with Canada clear to American consumers. The Canadian forest products industry will likely be the first to oppose this proposal. However, there’s a simple solution… redistribute the revenue from the export tax back to Canadian lumber exporters.