U.S. President Donald Trump confirmed today he’ll follow through on his threat to impose punishing tariffs on Canadian imports on Saturday, despite efforts by the federal government to address the commander-in-chief’s concerns by fortifying the border.
“Look, Mexico and Canada have never been good to us on trade,” Trump told reporters in the Oval Office on Thursday. “They’ve treated us very unfairly on trade.”
“And we will be able to make that up really quickly, because we don’t need the products that they have,” he added. “We have all the oil you need. We have all the trees you need, meaning the lumber. We have more than almost everybody in those two categories.”
As reasoning for the measure, the president pointed to the number of illegal drugs and migrants crossing the border, and what he considers the “massive subsidies … in the form of deficits,” referencing the trade deficit between Canada and the United States.
Trump initially threatened in late November to impose across-the-board 25 per cent tariffs on all imports from Canada and Mexico on “day one” of his second term. While the president held off on that threat last Monday, he said during an executive order signing ceremony on that day that he was considering Feb. 1 as the new implementation date.
On Thursday, Trump added: “Those tariffs may or may not rise with time.”
Oil ‘may or may not’ be included
Trump also said oil “may or may not” be carved out of the sweeping tariffs.
When asked whether oil would be included in the levies, Trump initially said “oil is going to have nothing to do with it,” but later clarifying he has yet to make a definitive decision.
“We’re going to make that determination probably tonight, on oil,” he said.
As a potential retaliatory measure to Trump’s tariffs, the Canadian federal government has repeatedly said every option remains on the table, including cutting off energy exports to the United States or imposing an export tax on certain products and resources.
Alberta Premier Danielle Smith has stood staunchly opposed to that idea, arguing Canada should do more to address Trump’s concerns around border security, instead of making threats it may not be able to follow through with.
The issue has caused tension between Smith, the federal government, and her fellow premiers, in recent weeks.
“We are monitoring the situation and will have more to say when the White House announces its decision,” Smith’s press secretary Sam Blackett wrote in an email statement to CTV News on Thursday.
“In the meantime, the premier reiterates her call to the federal government to immediately appoint a qualified border czar to coordinate a joint U.S.-Canada crack down on fentanyl and illegal migration at our shared border,” Blackett added.
Joly, McGuinty in Washington
Foreign Affairs Minister Melanie Joly and Public Safety Minister David McGuinty are in Washington to meet with U.S. officials and discuss the looming tariff threat.
Amid Trump’s early assertion that border security is the main reason for the tariffs, Canada earmarked $1.3 billion in the fall economic statement to add resources.
When asked whether any American official had signalled to her the tariffs could be avoided, Joly did not directly say.
“I think that the job that we’re doing right now is extremely important,” Joly told reporters from Washington, D.C. on Wednesday. “I think that the relationship between Canada and U.S. is extremely deep, and any form of trade tensions or trade war would have been lasting impacts.”
“And so, in that sense, I think that doing the job of helping my American colleagues to understand what would be at stake, is something that is definitely resonating,” she added.
Canadian officials have been attempting to highlight Canada’s bolstered border measures in recent days.
On Wednesday evening, a source told CTV News that Finance Minister Dominic LeBlanc, who also maintains responsibility for border security and chairs the cabinet committee on Canada-U.S. relations, texted a three-minute border security video to Trump’s nominee for Commerce Secretary, Howard Lutnick, in an act of quiet diplomacy.
Canada has a three-round retaliation planned, according to a senior government source, which would start by singling out a small list of American-made consumer products such as Kentucky bourbon and Florida orange juice.
This targeting would be followed by tariffs on a longer list of U.S. goods worth $37 billion, and then if needed, Canada would hit an additional $110 billion in manufacturing and other products with trade action.
Canada needs ‘strong and forceful response’: Ford
Ontario Progressive Conservative Leader Doug Ford has been publicly pushing back against Trump and his tariff threat, as well as the president’s comments about using “economic force” to annex Canada.
Ford, who in recent weeks has sported a ballcap reading “Canada is not for sale,” requested the provincial legislature be dissolved this week to launch an election. The Progressive Conservative candidate said he needs a new mandate to better respond to the U.S. president.
“President Trump is hellbent on undermining Canada,” Ford wrote in a post on social media Thursday, in response to Trump’s confirmation that tariffs are coming Saturday. “The federal government needs to be ready to immediately implement a strong and forceful response. Dollar for dollar. Tariff for tariff.”
“Canada won’t start this fight, but we have to be ready to win it,” he added.
Renewed threat comes after some believed they could be avoided
Trump’s comments on Thursday come just one day after Lutnick signalled that Canada could avoid tariffs in the short term if border concerns are addressed.
During his confirmation hearing before the U.S. Senate on Wednesday, Lutnick detailed a two-stage tariff approach, in which the first round is tied to the border and the second round is part of a broader plan in the spring. That phase would come after a study into alleged unfair trade practices due April 1.
“So, this is a separate tariff to create action from Mexico and action from Canada. And as far as I know, they are acting swiftly, and if they execute it, there will be no tariff,” Lutnick said Wednesday.
According to a senior government source, Lutnick discussed that tariff approach to Prime Minister Justin Trudeau during a conversation in Poland on Monday.
Trudeau also met virtually with premiers on Wednesday to discuss the Canada-U.S. relationship, after which Newfoundland and Labrador Premier Andrew Furey said the prime minister conveyed tariffs could be avoided in the immediacy.
“The (tariff threat) in February seems to be tied to actions on our borders, and we were led to believe that if appropriate actions were taken then the tariffs could be avoided on February 1,” Furey said in an interview with CTV’s Power Play on Wednesday.
Singh calls on Liberals to recall Parliament
NDP Leader Jagmeet Singh said Canada needs to “fight back” against Trump tariffs and implement retaliatory measures, namely by cutting off critical minerals to the U.S.
Parliament is prorogued until March 24. When it returns, Singh has pledged to vote to bring down the Liberal government.
But Singh said he wants MPs to come together in the interim to pass legislation for countermeasures to Trump.
“I’m calling on the Liberal government to recall Parliament,” Singh said at a press conference Thursday. “Bring Parliament back. Let’s pass legislation that supports workers, because we’re going to have an election in the spring.”
“Nothing changes around that,” he added. “We are going to be voting down the government in March, but there’s still two months.”
Sources tell CTV News that the federal government is planning a stimulus package to help businesses and Canadians if Trump imposes tariffs, but the scale of relief will depend on the scope of the tariffs.
