Trump says he will hit Canada with 25% tariff next week after month-long pause

U.S. President Donald Trump has reiterated his plans to impose a 25 per cent tariff on most Canadian goods next week, accusing Canada of taking advantage of the United States for too long. Trump made this announcement during a White House news conference with the French president, stating that the implementation of these tariffs is progressing quickly.

According to Trump, the tariffs are necessary to address the unfair trade practices that have been ongoing for many years. He emphasized that the tariffs will proceed as scheduled, despite concerns raised by economists and experts about the potential negative impact on the Canadian economy.

Earlier in the month, Trump had threatened to impose a devastating 25 per cent tariff on Canadian goods, with the exception of energy products which would face a 10 per cent tariff. This move was met with apprehension as it could lead to a recession in Canada and disrupt various industries across the country.

However, Trump decided to temporarily halt the implementation of these tariffs after Prime Minister Justin Trudeau agreed to enhance border security measures to prevent the influx of drugs and migrants into the U.S. Now, Trump has indicated that the pause will be lifted around March 4 as planned, despite improvements at the border.

In addition to the tariffs on Canadian goods, Trump has also threatened to impose additional tariffs on certain industries such as steel, aluminum, and auto imports. These tariffs are set to take effect in March and will be in addition to the 25 per cent tariff on Canadian goods.

Canada has made efforts to address Trump’s concerns, with a significant decrease in illegal migration and increased drug seizures at the border. The Canadian government has appointed a fentanyl czar to lead efforts to combat drug trafficking into the U.S.

Despite Trump’s claims of abuse and unfair deals, data shows that the U.S. actually has a trade surplus with Canada when oil exports are excluded. Trump renegotiated the Canada-U.S.-Mexico agreement in his first term, touting it as the best trade deal ever made.

While Trump has exaggerated the size of the trade deficit with Canada, official data indicates a deficit of $63 billion as of December 2024. Trump’s decision to move forward with tariffs on Canadian goods reflects his administration’s efforts to address what they perceive as unfair trade practices.