Trump delays tariffs on Canada, but uncertainty fuels economic and political strategies nationwide
Donald Trump’s team has indicated that his inauguration as US President will not immediately bring tariffs on Canada, according to Financial Post.
Despite this, concerns about future trade actions remain, especially after Trump’s earlier pledge to impose 25 percent tariffs through an executive order on his first day back in office. On Monday evening he told reporters that his administration was considering imposing tariffs on Canada and Mexico on February 1st.
A White House official, speaking on condition of anonymity, pointed to a Wall Street Journal report that Trump plans to sign an executive order to investigate trade and currency practices involving Canada, Mexico, and China.
Canadian Prime Minister Justin Trudeau has repeatedly affirmed that Canada is prepared to respond if these threats materialize.
Shortly after Trump’s swearing-in, Trudeau issued a statement emphasizing collaboration while defending Canadian interests:
“We are strongest when we work together, and I look forward to working with President Trump, his administration, members of the United States Congress, and officials at the state and local levels to deliver prosperity for our peoples — while protecting and defending the interests of Canadians.”
Federal officials are monitoring Trump’s actions before revealing countermeasures. Two government sources, speaking anonymously, confirmed that Canada has not yet disclosed specific responses.
To discourage tariffs, the federal government has committed $1.3bn over six years toward border security. Trump initially tied tariffs to border security concerns but later shifted focus to the trade imbalance between Canada and the US.
As federal cabinet ministers meet in Montebello, Quebec, to discuss strategies, provincial leaders have weighed in on the issue.
Last week, Trudeau and 12 premiers pledged a unified stance against tariffs. Alberta Premier Danielle Smith, however, declined to support retaliation measures affecting oil and gas.
Ontario Premier Doug Ford stressed the importance of remaining vigilant, despite reports suggesting Trump may delay action.
“He’s just adding more uncertainty, (saying) ‘I may not do it today, I’ll do it tomorrow. Maybe I’ll do it in a month.’ That doesn’t help,” Ford told CityNews.
Unifor president Lana Payne remains sceptical of reports suggesting Trump will hold off on tariffs, citing his actions during his first administration.
“No one should be breathing a sigh of relief at all right now,” Payne said. She noted that ongoing tariff threats discourage investment and harm Canada’s economy.
Payne advocated for long-term solutions, including industrial strategies for Canadian manufacturing, safeguards for potential job losses, and collaboration across political, business, and labour sectors.
“We have to come together in a profound way over the next four years to make sure that we’re guarding against any future threat, but also making sure that we’ve got our act together in Canada,” she said.
While Trump’s campaign included broad tariff promises, a poll by the Associated Press-NORC Center for Public Affairs Research found limited support for such measures.
Nearly half of US adults opposed tariffs on all imported goods, a higher proportion than those who supported or were neutral on the issue.
