Reports indicate Trump won’t impose tariffs on Canada and others immediately, easing trade tensions for the moment.
Ottawa: So, it looks like President Trump won’t be slapping tariffs on Canada, Mexico, or China right off the bat. Reports say he’s holding off for now, which is a bit of a relief for Canada.
He just got sworn in and is already weighing his options. There’s talk of a 25% tariff on Canadian goods or maybe a 10% on everything. But for today, he’s decided to take a breather.
Instead of jumping into tariffs, Trump plans to have agencies look into trade deficits and unfair practices from other countries. Canada, Mexico, and China are on his radar, but no new tariffs are coming just yet.
The Wall Street Journal was the first to break the news that he won’t be imposing tariffs on his first day, which is good news for Canada and others who were worried.
Canada is ready to retaliate if Trump changes his mind later. They’ve got a plan to hit back with tariffs on $37 billion worth of U.S. goods if it comes to that.
Finance Minister Dominic LeBlanc mentioned they’re prepared to act quickly if needed. He’s feeling a bit hopeful now that Trump isn’t rushing into tariffs right away.
LeBlanc is set to meet with Trump’s new commerce secretary soon. He wants to make it clear that tariffs on Canada could backfire and hurt the U.S. economy too.
While it’s good news for now, officials in Canada are still cautious. They’re keeping a close eye on what Trump does next.
Even though Trump could change his mind at any moment, focusing on other issues first is a small win for Canada. He had promised to take action on trade right away.
In the past, Trump has talked about using tariffs to tackle issues like drugs and illegal immigration. He’s been vocal about wanting to charge Canada and Mexico hefty tariffs if they don’t cooperate.
Canada has been proactive, announcing plans to enhance border security to address these concerns. They’ve got the numbers to back them up, showing that the fentanyl problem is much worse at the southern border.
LeBlanc believes they’ve made it clear to the new administration that Canada is on board with fighting illegal drugs and organized crime.
While tariffs are off the table for now, Trump is expected to review the trade agreement he signed with Canada and Mexico during his first term. He’s had issues with Canada’s farming policies before, and that could come up again.
It seems like Trump hasn’t completely given up on tariffs, though. He’s looking into setting up a new service to handle tariffs and duties in the future.
