Canada is once more staring down the barrel of large U.S. tariffs on Canadian items. With solely days to go till U.S. President Donald Trump kicks off a commerce conflict, Inside Commerce Minister Anita Anand says Canada might want to wait and see what occurs.
Anand, who met with U.S. officers in Washington this week, mentioned Canada continues to emphasize that tariffs are dangerous for each international locations because the clock winds right down to March 4 — when Trump will hit Canada with an economy-wide tariff of 25 per cent.
“We’re regular on the wheel. We’re ready for any eventuality, however we’ll at each flip defend our nation’s economic system,” Anand mentioned in an interview on Rosemary Barton Dwell.
On Sunday, U.S. Secretary of Commerce Howard Lutnick instructed Sunday Morning Futures on Fox Information: “There are going to be tariffs on Tuesday on Mexico and Canada. Precisely what they’re — we will go away that for the president and his staff to barter.”
Lutnick’s phrases recommend there’s discuss in Washington about going part-way and never unleashing the total tariff instantly. Canada-U.S. commerce watcher Dan Ujczo predicted this risk earlier this week in an interview with CBC Information.
He mentioned Trump would doubtless go for one thing within the center — between backing away from tariffs and charging forward full-steam.
“Within the center, there are a selection of choices,” mentioned Ujczo, senior counsel at Ohio-based Thompson Hine.
These choices embody a tiny tariff that’s scheduled to develop incrementally every month; an enormous tariff set to run out below sure circumstances; and a delayed phase-in.
Whereas recounting her conversations with U.S. lawmakers, Anand instructed host Rosemary Barton “the sense throughout the system is one in every of needing to attend and see what occurs” on Tuesday, when the tariffs are slated to enter impact.
“We see quite a few dates on completely different items coming from the White Home, and the one rational response from the Canadian authorities is the one which we’re taking,” Anand mentioned, referring to Ottawa’s earlier threat to impose $155 billion in countertariffs.
“We are going to put that out if and when the Trump administration comes ahead with its proposed 25 per cent tariffs,” Anand added.
So as to add to the uncertainty, Trump has additionally promised 25 per cent tariffs on all steel and aluminum imports, which he plans to impose on March 12. He is additionally threatened 25 per cent tariffs on auto, semiconductor and pharmaceutical imports as early as April 2.
Canada touts border efforts
During the last two months, Canadian officers have spent money and time securing the Canada-U.S. border and reducing down the circulate of migrants and lethal fentanyl into the USA — which Trump routinely argues motivates his tariffs.
Erin O’Gorman, president of the Canada Border Companies Company (CBSA), mentioned on Rosemary Barton Dwell her company is “surging on a number of fronts, together with fentanyl, together with on removals and actually pushing the boundaries by way of joint operations.”
Information from the U.S. Customs and Border Safety (CBP) launched this month reveals there was a 97 per cent drop in fentanyl seizures in January in comparison with December 2024, which the Canadian authorities says demonstrates its border safety efforts are bearing fruit.
Even earlier than these new efforts, Canada represented lower than one per cent of all seized fentanyl imports into the U.S., in accordance with federal knowledge.
Chief political correspondent Rosemary Barton speaks with CBSA president Erin O’Gorman concerning the work the Canada Border Companies Company has performed to deal with the U.S. president’s issues across the fentanyl disaster. Plus, Alberta Public Security Minister Mike Ellis discusses Alberta’s response to strengthen the border forward of Donald Trump’s tariff deadline.
O’Gorman mentioned for CBSA, there’s “no fish too small in our pond” since even small amounts of fentanyl shipped right down to the U.S. by envelopes “will doubtless kill some individuals.”
Lutnick mentioned the March 4 tariffs are “concerning the border, and each Mexico and Canada have performed an inexpensive job on the border…. However the fentanyl continues to come back into this nation and continues to homicide our individuals.”
No matter choice is made on Tuesday about tariffs “will not be for lack of an unbelievable effort on the a part of CBSA,” O’Gorman mentioned. “And that effort did not begin in October and it did not begin in the summertime. It is what we at all times do.”
Prime Minister Justin Trudeau, who’s meeting with European leaders in London, instructed reporters Sunday “the information set up very clearly that Canada isn’t a problem by way of [being a] supply of unlawful fentanyl into the USA.”
The value of instability
Former Quebec premier Jean Charest, who sits on the Prime Minister’s Council on Canada-U.S. Relations, mentioned on Rosemary Barton Dwell, “we’ve got to just about assume that [the tariffs] are going to go forward on Tuesday.”
However Canada is already “paying a value now for the instability and for the uncertainty” of Trump’s tariffs, Charest mentioned. Some trader-watchers argue that is precisely what the U.S. president needs so firms shift manufacturing to the USA.
In accordance with a report from consultancy firm KPMG, half of the 250 companies in Canada that KPMG contacted “plan to shift investments or manufacturing to the U.S. to serve the U.S. market and cut back prices.”
Most additionally mentioned that they had diverted or are contemplating diverting items to international locations not going through tariffs.
Charest mentioned there’s a possibility now to “Rethink who we’re as a rustic economically” and “how we run our federation,” together with pursuing commerce offers with the European Union or extra international locations in Asia.
“Let’s seize this second for ourselves to construct Canada and make it the nation we would like it to be,” Charest mentioned.
However on the finish of all of it, Charest mentioned Canada “must come to phrases with the actual fact we will dwell in a really completely different world.”
“There’s some individuals who suppose Mr. Trump in the future won’t be in workplace [and] issues will return to regular,” Charest mentioned. “They may by no means return to what we knew as regular. There can be individuals after that.”
Whereas he expects change, Charest mentioned he is optimistic about Canada’s future and that the nation will come out of this saga stronger than earlier than.
“However we will have to stay collectively. We’ll need to do issues that we’ve got not performed earlier than up to now.”
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