Trump’s New Tariffs on Canadian Imports Begin Saturday – Oil Decision Pending
U.S. President Donald Trump has confirmed that his administration will impose new tariffs on Canadian imports starting Saturday, February 1, 2025. The decision comes despite efforts from the Canadian government to strengthen border security and negotiate exemptions.
Trump cited trade deficits, illegal migration, and fentanyl shipments as key reasons for the tariffs. “Canada and Mexico have treated us very unfairly on trade,” Trump told reporters in Washington. “We have all the oil and lumber we need.”
Will Oil Be Included?
Trump said he may or may not include Canadian oil in the sweeping 25% tariffs. Initially, he claimed oil was exempt, but later clarified he would decide by Thursday night. “We’ll see. It depends on what the price is,” he added.
Canada’s Response and Retaliatory Measures
The Canadian government has stated it is prepared to retaliate if the tariffs take effect. Officials are considering:
- Targeted tariffs on U.S. products like Kentucky bourbon and Florida orange juice.
- A second wave of tariffs covering $37 billion in U.S. goods.
- A third phase targeting $110 billion in additional products if necessary.
However, Alberta Premier Danielle Smith has opposed retaliatory action, urging Canada to prioritize border security improvements instead.
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Diplomatic Efforts in Washington
Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty are in Washington to discuss the tariff issue. Finance Minister Dominic LeBlanc has actively engaged in quiet diplomacy, sharing border security updates with U.S. officials.
Despite these efforts, Trump’s final decision remains unclear. White House officials suggest a potential exemption for Canada if it meets certain border security demands.
Economic Impact and Political Reactions
Canadian officials and economists warn that these tariffs could trigger a recession, increase inflation, and disrupt trade.
- Ontario Premier Doug Ford has urged Ottawa to respond with “tariff for tariff” measures.
- NDP Leader Jagmeet Singh is calling for Parliament to be recalled to pass legislation supporting Canadian businesses.
- The Canadian Chamber of Commerce warns that tariffs will increase consumer prices and disrupt supply chains.
What Happens Next?
Trump is expected to finalize his decision on oil tariffs before the end of the day. Meanwhile, Canada is weighing its response strategies and preparing potential economic relief packages.
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For now, the fate of Canadian exports and trade relations with the U.S. remains uncertain.
More…
- https://www.ctvnews.ca/world/trumps-tariffs/article/trump-confirms-significant-tariffs-on-canadian-imports-coming-saturday-says-oil-may-or-may-not-be-included
- https://www.cbc.ca/player/play/video/9.6629701
- https://globalnews.ca/news/10989873/trump-tariffs-canada-tariffs-oil
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