TORONTO (AP) — Canada’s initial retaliatory tariffs against the U.S. will remain in place for now despite President Donald Trump postponing 25% tariffs on many imports from Canada for a month, a senior Canadian government official said.
Trump said Thursday that he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.
A senior Canadian government official confirmed Canada's response tariffs will remain for now. The official spoke on condition of anonymity as they were not authorized to speak publicly about the matter.
Canada’s initial $30 billion Canadian (US$21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Ontario Premier Doug Ford, the leader of Canada’s most populous province, also said Thursday that, starting on Monday, the province will charge 25% more for electricity shipped to 1.5 million Americans in response to Trump’s tariff plan. Ontario provides electricity to Minnesota, New York and Michigan.
Ford said Ontario’s tariff would remain in place despite the one-month reprieve from the Americans. Ford said Wednesday that so long as the threat of tariffs continue, Ontario’s position would remain the same.
“This whole thing with President Trump is a mess,” Ford said. “This reprieve, we went down this road before. He still threatens the tariffs on April 2.”
British Columbia Premier David Eby also said his province will introduce legislation in the coming days that would give it the ability to levy fees on commercial trucks traveling from the United States through the province to Alaska. He said Canadians won't let up until the tariffs are taken off the table.
“Yet again the president is sowing uncertainty and chaos attempting to undermining our economy by implementing tariffs and then pulling them off,” Eby said.
"We are going to ensure that the Americans understand how pissed off we are.”
Canadian Prime Minister Justin Trudeau said earlier Thursday that he expects Canada and the U.S. to be in a trade war for the foreseeable future after having what he called a colorful but constructive call with Trump on Tuesday.
Imports from Mexico that comply with the 2020 USMCA trade pact would be excluded from the 25% tariffs for a month, according to the orders signed by Trump. Imports from Canada that comply with the trade deal would also avoid the 25% tariffs for a month, while the potash that U.S. farmers import from Canada would be tariffed at 10%, the same rate at which Trump wants to tariff Canadian energy products.
Roughly 62% of imports from Canada would likely still face the new tariffs because they’re not USMCA compliant, according to a White House official who insisted on anonymity to preview the orders on a call with reporters. Half of imports from Mexico that are not USCMA compliant would also be taxed under the orders being signed by Trump, the official said.
Trump launched a new trade war Tuesday by imposing tariffs against Washington's three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.
A day after the new tariffs took effect, Trump had said he would grant a one-month exemption for U.S. automakers. The announcement came after Trump spoke Wednesday with leaders of Ford, General Motors and Stellantis, the parent company of Chrysler and Jeep. His press secretary said Trump told the chief executives to move auto production to the U.S. to avoid tariffs.
Ottawa plans a further $125 billion (US$87 billion) in tariffs in three weeks on American products like electric vehicles, fruits and vegetables, diary, beef, pork, electronics, steel and trucks.
Despite Trump’s claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP