08:29 AM EST, 01/16/2025 (MT Newswires) -- As former finance minister Chrystia Freeland prepares to launch a Liberal leadership bid, a source close to her says scrapping the controversial consumer carbon tax will be one of her policy planks.

"She is ready to make difficult decisions to meet our emissions targets and make sure big polluters pay for their outsized emissions. But she will not fight Canadians on a policy they have been clear, they do not support," the source told CTV News. "That's why Chrystia Freeland will replace the consumer carbon price with a system that will work within our federation and will be developed collaboratively with provinces and territories."

The report noted Freeland had previously defended the carbon tax during her time in Prime Minister Justin Trudeau's cabinet.

Sources say Freeland is set to announce her leadership run ahead of U.S. president-elect Donald Trump's inauguration on Monday. Freeland also intends to announce dollar-for-dollar retaliatory tariffs to counter Trump's threat of 25% tariffs on all Canadian goods.

Meanwhile, Canada has drawn up an initial list of C$150 billion ($105 billion) of US-manufactured items that it would hit with tariffs if Trump decides to levy tariffs against Canadian goods, according to an official familiar with the matter, Bloomberg is reporting. The list is a draft and would come into play only if the Trump administration moves first, the person said, speaking on condition they not be identified discussing the plans. More tariffs from Canada might be added later, depending on what the US does, the person said.

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