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‘Unjustified decision’: Trump’s tariffs are here and Canada is ready to retaliate
After months of threats and changes in dates U.S. President Donald Trump’s 25 per cent tariffs on imports from Canada and Mexico are here, and they kicked in at one minute past midnight.
Despite Canada’s efforts to meet Trump’s demands to boost border security, the appointment of a ‘Fentanyl Czar’ and a weeks-long diplomatic push by Canadian officials in Washington, the Republican president said yesterday that there was “no room left” to make a deal to change his mind.
Last night, Prime Minister Justin Trudeau called the tariffs “unjustified” and added that they violate the free trade agreement between Canada, the U.S. and Mexico, who announced 25% retaliatory tariffs this morning. President Claudia Sheinbaum said that she will announce the products Mexico will be targeting in a public event on Sunday.
The across-the-board tariffs on Canada and Mexico also include a 10 per cent levy on Canadian energy, with 25 per cent tariffs on steel and aluminum to come into effect March 12.
Economists have warned that tariffs will drive up the cost of items on both sides of the border, and the Canadian Federation of Independent Business says costs increases will be felt soon. The Federation says 16 per cent of small businesses export directly to the U.S. and 47 per cent import from the country.
Lana Payne, the president of Unifor, Canada’s largest private sector union, says Trump has seriously misjudged the unity and resolve of Canadians, and how damaging the trade war will be for U.S. workers, adding that “today our trade relationship forever changed with the U.S.”
READ MORE: Canadian recession looms this year if U.S. tariffs stay in place: economists
Canada’s response
Trudeau confirmed that Canada will be respond with 25 per cent tariffs on $155-billion worth of American goods, $30 billion of which will be slapped on U.S. products immediately, with the remainder to come over the next 21 days.
“Canada will not let this unjustified decision go unanswered, ” the PM said.
The first round of measures will be on products such as U.S. orange juice, peanut butter, alcohol, coffee, shoes, clothes and cosmetics. There are reported to be over 1,000 products on the tariff list.
Canada’s retaliatory tariffs will remain in place until the U.S. withdraws its trade levies.
Hamilton Mayor Andrea Horwath says the tariffs will have a devastating impact on jobs in the area.
Horwath is in Washington, D.C. this week with other Canadian mayors to meet with members of U.S. Congress and trade organizations to discuss the impact on the North American economy and jobs. They will be joined by representatives from the Federation of Canadian Municipalities.
Speaking on the possible effect of incoming tariffs in the Hamilton-area, Horwath told CHCH yesterday “…in terms of the broader census metropolitan area, so surrounding communities, that’s close to 40,000 jobs. We’re talking a billion dollars in trade.”
READ MORE: Hamilton mayor to attend tariff discussion in Washington, D.C. this week
Newly re-elected Ontario Premier Doug Ford said yesterday that he is considering implementing a province-wide ‘Buy Ontario’ and ‘Buy Canadian’ policy and wants stores to mark Canadian products.
“…Every retail store, when you go look at the shelf…we need to see a Canadian flag on that price,” Ford said.
READ MORE: Ford urging Buy Ontario approach as tariffs loom, says he may legislate it
The Premier urged consumers, retailers and municipalities to source goods from Ontario, and from elsewhere in Canada if they can’t be found in the province.
Ford reiterated on NBC “Meet the Press” on Monday that he will not hold back on the tariff war and is strongly considering cutting off Ontario electricity to some U.S. states.
He also said that Ontario will stockpile and stop sending some critical minerals such as nickel to the U.S. and he ordered the removal of all U.S. alcohol from LCBO stores in Ontario.
READ MORE: LCBO removing U.S. alcohol from its shelves in response to tariffs
The provincial Liquor Control Board posted on its website this morning: “Our site is temporarily unavailable while we remove U.S. products in response to U.S. tariffs on Canadian goods,” adding that in-store customer service would not be affected.
At the federal level, Prime Minister Trudeau has a press conference scheduled for this 10:30 a.m. this morning to discuss the tariffs and specifics of the trade war.
He will be joined by Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty.
This is a developing news story — more to come.
