WASHINGTON – U.S. President Donald Trump has proposed implementing a 25% across-the-board tariff on Canadian imports as early as February 1. Speaking at the White House on Monday evening, Trump introduced this possibility while signing unrelated executive orders.
“We are thinking in terms of 25% on Mexico and Canada because they are allowing vast numbers of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in,” Trump stated.
While administration officials earlier suggested Trump might only sign a memorandum to study trade issues with Canada, Mexico, and China, the president’s remarks indicate a more aggressive timeline. An executive order signed late Monday mandates trade studies, with reports due by April 1—after the February tariff deadline.
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Potential Economic Impact and Canada’s Response
Canada Prepares Counter-Tariffs
Canadian officials have expressed readiness to respond if Trump’s 25% tariff is enacted. Finance Minister Dominic LeBlanc confirmed Ottawa’s preparedness, stating, “We are absolutely ready for Trump tariffs.” Federal sources suggest Canada’s response could include counter-tariffs worth approximately $37 billion, with the potential for an additional $110 billion depending on the severity of U.S. duties.
Foreign Affairs Minister Mélanie Joly emphasized national unity in addressing the situation. “We’re calling on every single political leader across the board, across the country, to stand united because now more than ever, we need to make sure that we put country first,” she said during a cabinet retreat in Montebello, Quebec.
Trade Minister Mary Ng assured Canadians that a “Team Canada” approach has been adopted to demonstrate to U.S. counterparts that tariffs on Canadian goods could harm American jobs.
Alberta’s Unique Stance
Alberta Premier Danielle Smith highlighted potential opportunities in energy cooperation. Referring to Trump’s promise to declare a “national energy emergency,” Smith suggested that Canada could partner with the U.S. to stabilize oil and gas prices. “Americans want to have energy dominance globally, and I believe the best way for them to achieve that is for Canada to be a partner,” she noted.
However, Smith has broken from other provincial leaders by refusing to sign a joint statement that pledged all countermeasures would be on the table, including levies on oil exports.
Trump’s Broader Trade Vision
During his inaugural address earlier Monday, Trump reiterated his commitment to overhauling the U.S. trade system to protect American workers and families.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he said. Trump also hinted at the possibility of imposing a universal tariff on all countries but added, “We’re not ready for that yet.”
Trump’s remarks continue to focus on immigration concerns, particularly at the U.S.-Mexico border, and alleged subsidies that he claims benefit Canada at the expense of the U.S.
Reactions from Canadian and U.S. Officials
Federal and provincial officials in Washington expressed relief that Canadian goods were not explicitly mentioned during Trump’s inaugural address. However, Liberal MP John McKay warned against complacency, advocating for a fact-based approach to counter Trump’s claims. “Ottawa has an opportunity to establish an agreed-upon set of facts, as opposed to nonsense which is currently occupying the public space,” McKay said.
Prime Minister Justin Trudeau congratulated Trump on his inauguration and highlighted Canada’s ongoing efforts to secure the border. “We are strongest when we work together,” Trudeau wrote in a statement.
Public Reactions and Supporters’ Views
Trump’s supporters expressed optimism about the proposed tariffs and broader trade policies. Kenneth Johnson from Nevada praised the administration’s efforts to eliminate corruption and reduce costs for American families. “We’re getting rid of the corruption. We’re getting rid of the baloney,” Johnson said.
Similarly, Daniel Blake from Connecticut lauded Trump’s vision for smaller government and more efficient use of taxpayer money.
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Looking Ahead
As February approaches, the potential for a 25% tariff on Canadian imports remains a key concern for both nations. Canadian officials continue to prepare countermeasures, while the U.S. administration appears resolute in its approach to reshaping trade relations. The coming weeks will be critical in determining the economic and diplomatic impact of these proposed measures.
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