Trump’s 35 per cent tariffs came into effect today. Now what?

This is what Trump has been calling “Liberation Day” — making America rich by collecting tariffs on imports. 

The U.S. has already imposed a 50 per cent tariff on Canadian steel and aluminum, and a 25 per cent tariff on auto components from Canada.

Now, as of today, there’s a 35 per cent tariff on other goods — an increase from the previously proposed 25 per cent. 

This new round of tariffs applies to goods not covered by the Canada-US-Mexico Free Trade Agreement.

Experts say the impact won’t be great because the agreement covers most exports, but the uncertainty of dealing with Trump is taking its toll.

“Businesses are reacting to uncertainty by cutting back on investment and being careful with hiring,” says McMaster economist Colin Mang.

“Probably not going to improve until we get a trade relationship with the U.S.”

Prime Minister Carney was trying to work out a new trade deal with Trump by a deadline of today, and issued a statement saying he’s “disappointed by this action.”

He says “we will continue to negotiate with the United States” focused on “building Canada strong.”

“The Prime Minister is trying to get the best deal he can for Canadians,” Housing Minister Gregor Robertson said.

“I have a ton of confidence in him for that. I think compared to most countries around the world we’re on a better course.”

Business and union leaders say Carney was right not to agree to a deal with Trump just to stop today’s tariffs. The head of the country’s largest private sector union says any good deal will have to eliminate tariffs.

“A bad deal would have spelled disastrous implications for the auto sector, steel sector, and the aluminum sector,” UNIFOR president Lana Payne said.

“Any normalization of tariffs would have had an impact on workers.”

Political commentator Keith Leslie says it’s tough for Carney to deal with someone like Trump.

“I think Carney is doing about as good a job as anyone could trying to work out a deal with a virtual madman who changes his mind virtually hour to hour and day to day,” Leslie told CHCH News.

Trump says these latest tariffs are because of fentanyl allegedly crossing the border, or Carney’s support for a Palestinian government in Gaza. But the real reason may be something else.

“I think Trump’s sincere in wanting to make Canada the 51st state and I think that’s why he’s been picking on us,” Leslie added.

“No other countries were threatened with annexation. No other countries had their tariffs imposed today, they all had at least a week.”

READ MORE: Trump signs executive order pushing tariffs on Canada to 35 per cent