OTTAWA—The Canadian government has not received any official confirmation that incoming U.S. President Donald Trump will not impose tariffs on Canadian products, as threatened.
Two senior Canadian officials said Monday the government was still waiting for official word that would confirm reports by the Wall Street Journal and New York Times that Trump is instead going to order a trade deficit review which would include a study of the North American free-trade pact.
One official said it is encouraging if true that Trump’s threatened 25 per cent tariffs on all Canadian goods is not immediately on the table.
However, that official said Trump’s action could represent a serious threat down the road.
The Wall Street Journal reported Monday that Trump will issue a presidential memo to direct federal agencies to investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nation. The newspaper said it singles out China, Canada and Mexico for scrutiny, directing agencies to assess Beijing’s compliance with its 2020 trade deal with the U.S., as well as the status of the U.S.-Mexico-Canada Agreement, or USMCA, Trump’s updated North American Free Trade Agreement, which is set for review in 2026.
In Ottawa, all eyes were on Washington and the minute-by-minute inaugural day ceremonies that were unfolding in America’s capital, a day after Trump told a rally he would sign about 100 executive orders on his first day in office.
Since November, Trump has threatened 25 per cent across the board tariffs on Canada and Mexico, and an additional 10 per cent tariffs on China. That was a significant escalation of his election campaign vow of 10 per cent global tariffs on all imports.
Canadian federal and provincial lawmakers along with business and union leaders have been in a full-court press since then persuade Trump’s team, and American counterparts of the damage such tariffs would do to both Canada and U.S. consumers and businesses.
At the same time, the Canadian government has planned a series of escalating reciprocal tariffs on American products if Trump moved ahead as early as Monday.
Ottawa is also looking at ways to support Canadian businesses and workers if an all-out trade war erupts.
It could take weeks and months for the tariff dispute to play out — if Trump does in fact move to impose tariffs.
“If the president-elect does choose to move forward on tariffs, Canada will, of course, respond,” Prime Minister Justin Trudeau said Friday when he met in Toronto with members of a Canada-U.S. relations advisory council, and separately with the Canadian Automotive Partnership Council. “And I will say it again, everything is on the table.”
This is a developing story.
