Canadians Brace for Potential Tariffs as Trump’s Trade Threat Looms
Uncertainty Surrounds Trump’s Tariff Plans Against Canada
Washington, D.C. – Canadian officials and business leaders are anxiously awaiting clarity on whether former U.S. President Donald Trump will follow through on his threat to impose steep tariffs on Canadian imports. Despite earlier promises to implement duties on his first day back in office, Trump has so far held off, though he has repeatedly hinted at a February 1 deadline for potential action.
On Friday, Trump suggested he might lower tariffs on Canadian oil to 10%, following confirmation from the White House that he intends to move forward with 25% levies on imports from Canada and Mexico. However, details on the exact timeline and scope of these tariffs remain unclear.
Canadian Leaders Seek Answers Amid Economic Fears
Canada’s Foreign Affairs Minister Mélanie Joly acknowledged the uncertainty during a press briefing in Washington, stating that the federal government has yet to receive clear decision-making or specific details from the White House.
“We have yet seen any form of clear decision-making, as well as any form of specific details coming from the White House,” Joly said Friday night.
Trump, while addressing reporters in the Oval Office, was vague about his trade policy plans but floated the idea of oil tariffs being implemented by February 18. Whether this timeline specifically applies to Canada remains unknown.
Canadian Officials Make Last-Ditch Efforts in Washington
As part of efforts to prevent the tariffs, Joly, Public Safety Minister David McGuinty, and Immigration Minister Marc Miller met with Republican officials throughout the week, including Trump’s border czar Tom Homan.
Canadian ministers highlighted the country’s $1.3-billion border security plan, designed to address Trump’s concerns over illegal crossings and drug trafficking. They also emphasized that Canada is not a significant source of illicit fentanyl, with U.S. Customs and Border Protection reporting that only 20 kilograms of fentanyl out of 9,930 kilograms seized in the last fiscal year came from Canada.
Despite these efforts, Trump made it clear that no concessions from Canada, Mexico, or China would prevent the implementation of tariffs.
Provincial Leaders Split on Retaliation Strategy
The uncertainty surrounding the tariffs has sparked divisions among Canada’s provincial leaders.
Ontario Premier Doug Ford, speaking at a campaign stop in Brampton, strongly criticized Trump’s trade threats, calling them “reckless and selfish.”
Ford urged Canada to “hit back strong” if the tariffs take effect.
Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have taken a different stance, cautioning against retaliatory tariffs on oil and other key resources such as potash.
“We would ask President Trump’s administration not to put those tariffs on,” Moe said Friday. “And we would also ask our federal government to address the priorities that President Trump has raised.”
U.S.-Canada Oil Trade in the Spotlight
A significant portion of the potential tariffs would impact Canada’s oil industry, which supplies nearly 4.6 million barrels per day to the United States, according to the U.S. Energy Information Administration.
While Trump has suggested a 10% tariff on Canadian oil, it remains unclear how this policy would align with the broader 25% levies on imports from Canada and Mexico.
Canada Prepares for Retaliation
The federal government has indicated that multiple options for retaliatory tariffs are being considered, depending on Trump’s final decision. However, the uncertainty surrounding the timeline and details of the tariffs has left both policymakers and businesses in a state of economic limbo.
What’s Next?
As Trump spends the weekend at his Mar-a-Lago resort in Florida, Canadian leaders continue to press for clarity. With February 1 quickly approaching, businesses and policymakers are bracing for potential economic fallout if the former president follows through on his tariff threats.
Source : The Canadian Press
