American President Donald Trump has confirmed he will impose a 25% tariff on all imports from Canada and Mexico on Saturday, citing concerns over border security, drug smuggling, and trade deficits.
Trump made the announcement on Thursday. While he said oil “has nothing to do with it,” it’s unclear whether that means oil will be exempt or whether it means it does not hold sway over the incoming tariffs.
He outlined three key reasons for the inbound tariffs.
“Number one is the people that have poured into our country so horribly and so much; Number two are the drugs, fentanyl, and everything else that have come into the country; and, number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of deficits,” said Trump.
Trump confirmed that the tariffs will be 25% on Canada and also 25% on Mexico, though they are separate tariffs. And he warned that the tariffs could rise with time.
The Trump administration previously hinted that the 25% tariffs on Canadian imports would be part of a two-phase plan.
The first phase on Feb. 1 is aimed at addressing the fentanyl crisis, whereas the second phase is set to begin in April after Trump receives a study he commissioned to be completed by Apr. 1 focusing on the administration’s America First Trade Policy.
Ontario Premier Doug Ford, Chair of Canada’s Premiers, continued his call for retaliatory measures.
“President Trump is hellbent on undermining Canada,” Ford wrote on X following the tariff confirmation. “The federal government needs to be ready to immediately implement a strong and forceful response. Dollar for dollar. Tariff for tariff.”
Alberta Premier Danielle Smith called for Ottawa to appoint a border czar to work with their U.S. counterpart to avoid the upcoming tariffs. The request was made the day before Trump’s most recent tariff announcement.
The Liberals have yet to respond to Trump’s most recent confirmation of the tariffs, but Prime Minister Justin Trudeau has previously advocated for retaliation. For retaliation to occur, it means the tariffs are in place. Smith previously said that she wished to avoid the tariffs altogether by emphasizing collaboration.
Despite standing alone initially, some premiers have shifted sides and aligned with Smith’s approach, such as those in Quebec and Saskatchewan.
Minister of Transport and International Trade Anita Anand previously said that Canadians will have to “bear the sacrifice” of the retaliatory measures to the tariffs.
The Liberals have also hinted at issuing pandemic-style payouts to businesses harmed by the tariffs.
This is a developing story and will be updated as necessary