President Donald Trump initiated a trade conflict with Canada today by imposing a 25 percent tariff on nearly all imports from the nation—an unprecedented action against a long-standing ally that could destabilize the economy significantly.
The long-anticipated strategy to impose economic repercussions on Canada has come to fruition on the date Trump specified, which includes a 10 percent tariff on Canadian energy products, as detailed in a fact sheet from the White House provided to CBC News. Additionally, Trump is enforcing tariffs of 25 percent on all goods from Mexico and 10 percent on products from China.
These potentially harmful tariffs are scheduled to take effect on Tuesday and will remain in force until Trump deems that Canada has taken sufficient measures to curb the influx of fentanyl into the United States, according to the fact sheet.
The fact sheet states, “The significant threat presented by illegal immigrants and drugs, particularly the lethal fentanyl, represents a national emergency.”
“President Trump is implementing decisive measures to ensure that Mexico, Canada, and China fulfill their commitments to curb illegal immigration and prevent the influx of harmful fentanyl and other narcotics into our nation.”
Trump’s characterization of the anticipated tariffs as a reaction to an “emergency” concerning drugs and migration allows him the flexibility to impose tariffs, despite the existence of the new NAFTA (the Canada-U.S.-Mexico Agreement), which is designed to prohibit such measures.
Experts have indicated that trade actions of this scale could potentially reduce Canada’s gross domestic product (GDP) by billions and lead the nation into a severe recession that would necessitate government intervention to stabilize the economy.
Canada is anticipated to respond later on Saturday with its own retaliatory tariffs, aiming to make Trump reconsider his approach towards his largest trading partner.
A senior Canadian government official has indicated that Trump’s tariffs could increase if Canada decides to retaliate.
Prime Minister Justin Trudeau is convening with provincial leaders to inform them of Canada’s planned response to Trump’s trade measures. An announcement from Trudeau is expected at 6 p.m. ET.
‘The coming days and weeks will be hard’
The next move in this trade war will fall to Trudeau and the federal cabinet.
The government has promised to hit back against Trump with retaliatory tariffs and possibly even more dramatic actions, like withholding crucial energy supplies, if it can’t get the president to back down.
Ontario Progressive Conservative Leader Doug Ford, who currently leads the premiers as head of the Council of the Federation, has called for forceful action to make Americans feel the pain of Trump’s tariffs.
Ford recently called a snap provincial election, saying he wanted a stronger mandate to deal with tariff issues. In a social media post on Saturday, he said “the coming days and weeks will be hard.”
“Our economy will feel the impact of President Trump’s tariffs almost immediately, with hundreds of thousands of jobs at risk,” he said.
Tariffs an ‘act of hostility,’ ‘profoundly disturbing’
Lana Payne, the president of Unifor, which is Canada’s largest private-sector union, expressed that President Trump’s choice to “engage in conflict with America’s largest trading partner will adversely affect workers on both sides of the border.”
Payne, who also serves on Prime Minister Trudeau’s Council on Canada-U.S. Relations, emphasized the necessity for the government to “respond promptly and decisively” to Trump’s “unjust” measures.
Prior to a meeting with the prime minister and other provincial leaders, Newfoundland and Labrador Premier Andrew Furey remarked that the threat of U.S. tariffs represents not only an economic assault but also an affront to Canada’s values, sovereignty, and identity. In an interview with CBC’s Rosemary Barton, Furey asserted that the response must be both firm and responsible, despite President Trump’s warnings against retaliation.
“I believe Trump has misjudged Canadians. He has overlooked the fact that he has provoked and unified a nation that is prepared to defend every job in this country. We will not forget this act of aggression against our workforce, and we must employ every possible strategy — harnessing all our creativity — to cultivate a robust, resilient, and diverse economy that will never again be vulnerable to American pressures.”
Candace Laing, president and CEO of the Canadian Chamber of Commerce, characterized Trump’s actions as “deeply troubling” and predicted that they would have “immediate and direct repercussions on the livelihoods of Canadians and Americans alike.”
“Tariffs will significantly raise the cost of living for everyone,” Laing stated.