Canada holds its breath, waits to see details of Trump’s promised tariffs

As Canadians anxiously await details on the promised U.S. tariffs that could potentially devastate their economy, U.S. President Donald Trump has confirmed his intentions to move forward with his plan. The White House press secretary, Karoline Leavitt, announced that the president will impose a 25 per cent tariff on both Canada and Mexico, along with a 10 per cent tariff on China, starting on Saturday.
In a vague statement to reporters in the Oval Office, Trump outlined some key points of his plan, including the inclusion of oil and gas in the tariffs by or around February 18th. He mentioned that the levy on oil would likely be set at 10 per cent, but it remains unclear whether lower duties would apply from the beginning. Additionally, Trump stated that there would be significant tariffs on steel and aluminum, with the possibility of including copper in the future. He also expressed that the reaction of financial markets to his plans was not a concern and hinted that tariffs could substantially increase over time.
Experts have warned that even a 10 per cent tariff could have severe consequences for Canada, potentially shaving billions of dollars off the country’s GDP and leading to a painful recession that may require government intervention to stabilize the economy.
Trump’s rationale for imposing tariffs on Canada has varied, ranging from concerns about border security to trade deficits. On Friday, he accused Canada of treating the U.S. unfairly in trade agreements. However, data from the U.S. government suggests that the trade deficit with Canada was $55 billion US as of November 2024, excluding oil exports. Canadian officials argue that when services and entertainment industry revenues are factored in, the U.S. actually has a trade surplus with Canada.
While Trump has raised concerns about migrants and drugs entering the U.S. from Canada, data indicates that the majority of these issues stem from the southern border. Illegal migration through Canada has increased in recent years, but incidents at the Canadian border represent a small fraction of total border crossings.
Despite these challenges, Ottawa has committed to addressing border security concerns by investing in a $1.3 billion border package to enhance personnel and technology along the 49th parallel. However, Trump made it clear that there is nothing the Canadian government could do to sway his decision on imposing tariffs.
As the situation continues to unfold, Canadians are bracing themselves for the potential impact of these tariffs on their economy and are closely monitoring developments in the ongoing trade dispute with the U.S.