Trump says 25% tariff on most Canadian goods will take effect March 4

President Donald Trump has announced that he will end a month-long pause and impose a 25 per cent tariff on most Canadian goods as of March 4. The President claims that this action is necessary because “drugs are still pouring into our country,” specifically citing fentanyl imports as a major concern. Trump stated that the U.S. “cannot allow this scourge to continue to harm the USA” and will levy the tariff on Canada until the flow of drugs is stopped or significantly reduced.

The President’s decision comes after a week of conflicting statements regarding the tariffs. Initially, Trump indicated that the tariff pause negotiated with Prime Minister Justin Trudeau would be lifted, but the White House later clarified that negotiations were still ongoing. However, Trump reiterated on Thursday that the 25 per cent tariff would indeed go into effect as scheduled on March 4.

In response to Trump’s announcement, Prime Minister Trudeau vowed to retaliate against the U.S. with strong measures if the tariffs are imposed. Canada is prepared to impose levies on $150 billion worth of American goods in response to the President’s actions.

Despite Trump’s claims that Canada is not doing enough to prevent the flow of drugs into the U.S., data from the U.S. Customs and Border Protection (CBP) shows a significant decrease in fentanyl seizures coming from Canada. The CBP reported a 97 per cent drop in fentanyl seizures in January compared to December 2024, demonstrating that Canada’s border security measures are effective.

The Canadian government has also appointed a fentanyl czar to lead efforts to combat drug trafficking, and law enforcement agencies have reported successful seizures of fentanyl and other synthetic opioids. Additionally, illegal migration from Canada into the U.S. has declined by 90 per cent in recent months, according to Canadian officials.

In light of these developments, Canada is confident that its efforts to strengthen border security and combat drug trafficking will satisfy the U.S. administration. However, Trump’s decision to impose tariffs on Canadian goods remains a point of contention between the two countries. Both sides are preparing for potential economic repercussions as the trade dispute escalates.

Overall, the situation highlights the complexities of cross-border relations and the challenges of addressing transnational issues such as drug trafficking. As the U.S. and Canada navigate this trade dispute, it is essential for both countries to continue working together to address shared concerns and promote mutual prosperity.