Uncertainty and mixed messaging continue over whether or not U.S. President Donald Trump will hit Canada with sweeping tariffs next week on March 4.
Trump, who spoke to the media during the first meeting of his newly appointed cabinet, was asked if he would consider pausing or stopping the tariffs given the border security measures recently put in place by both of the U.S.’s neighbours.
“I’m not stopping the tariffs,” Trump told reporters, adding that he was concerned about the fentanyl crisis facing the U.S.
However, U.S. Commerce Secretary Howard Lutnick, who was also present at the meeting, clarified that Trump was talking about two separate sets of tariffs.
The first is the fentanyl-related 25 per cent tariffs on Canada and Mexico, which are set to hit on March 4. The second set of tariffs are reciprocal tariffs on all of America’s trading partners, which Trump said will go into effect on April 2.
“It’s a pause (on the fentanyl-related tariffs on Canada and Mexico). If they can prove to the president they’ve done an excellent job, that’s what they first do in 30 days. But then the overall (reciprocal tariffs) is April 2nd,” Lutnick said.
He added, “At the end of that 30 days, they have to prove to the president that they’ve satisfied him to that regard. If they have, he’ll give them a pause or he won’t.”
According to the Canadian government, less than one per cent of the fentanyl entering the U.S. comes from Canada.
Trump has been threatening a broad-based tariff of 25 per cent on all goods from Canada and Mexico, two of America’s biggest trade partners. These tariffs were originally scheduled to go into effect on February 4.
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However, after a phone call with Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, Trump decided to pause the tariffs for a month.
Seemingly speaking about the reciprocal tariffs, Trump said, “I was going to do it on April 1st, but I’m a little bit superstitious. So I made it April 2nd. The tariffs go on. Not all of them, but a lot of them.”
Sweeping tariffs could hit Canada’s economy as early as next week, even as government leaders and labour groups meet to discuss further steps amid the uncertainty.
U.S. President Donald Trump on Monday said tariffs were “on schedule” to arrive on March 4, although he did not clarify whether he meant the broad-based 25 per cent tariffs on Canada or the reciprocal tariffs he announced on all of America’s trade partners.
A White House official speaking on background told Motorcycle accident toronto today on Wednesday that the March 4 tariff plans for Canada and Mexico could change through negotiations.
As of now though, those plans are still moving ahead, the official said.
Preparing for Trump’s tariffs remains top of mind for Canadian government leaders and businesses.
The Canadian Labour Congress (CLC) is hosting an emergency meeting Wednesday night to discuss the impact of U.S. tariffs on workers and communities.
The meeting will be held virtually at 8 p.m. eastern and will be attended by leaders from unions representing more than three million workers from all sectors across Canada.
A recent report by the Canadian Chamber of Commerce said around 2.3 million Canadians work in jobs tied directly to U.S. exports, while 1.4 million Americans work in jobs tied to Canadian exports.
A representative from the CLC’s U.S. counterpart, the American Federation of Labor and Congress of Industrial Organizations, will also participate to speak about the challenges facing American workers.
Bea Bruske, president of the Canadian Labour Congress, said Canada has to prepare for the tariffs.
The CLC says Canada needs a “comprehensive, worker-first strategy” to protect jobs, industries and communities from economic disruption.
It says now is the time to diversify trade, invest in domestic industries and strengthen protections for Canadian workers by rolling out special employment insurance measures and financial assistance.
The CLC is also calling for Canada to consider imposing “significant and impactful tariffs” on the U.S. and cutting off its access to critical resources like electricity, lumber, minerals, oil and gas if tariffs are applied.
–with files from The Canadian Press
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