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OTTAWA — U.S. President Donald Trump did not make good on his threat to slam Canada with punishing tariffs the day he moved back into the White House, but it’s cold comfort to Canadian political leaders and business groups who say tariffs could still be on the horizon.
Trump threatened shortly after the presidential election in November to hit Canada and Mexico with steep 25 per cent across-the-board tariffs on inauguration day. He made no mention of Canada at all in his inauguration speech Monday.
In a call with reporters, an incoming White House official who insisted on anonymity pointed reporters asking about tariffs to a Wall Street Journal report that said Trump plans to sign an executive order launching an investigation into alleged unfair trade and currency practices by Canada, Mexico and China.
Tariffs weren’t mentioned in a list of first priorities issued by the White House hours after Trump was sworn in, though he did touch on the notion of tariffs briefly in his speech.
“I will immediately begin the overhaul of our trade system to protect American workers and families,” he said. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”
He said he is establishing an “External Revenue Service” to collect tariffs and duties.
“It will be massive amounts of money pouring into our treasury coming from foreign sources,” he said. “The American dream will soon be back and thriving like never before.”
Trump initially tied the tariffs to concerns about immigration and illegal drugs flowing into the U.S. from Canada, but later pivoted his concerns to the trade deficit the United States has with Canada.
Quebec Premier François Legault said he believes Trump is serious about eliminating that deficit and that tariffs remain a real risk.
“I’m not saying that we won and it’s over with Mr. Trump,” he told reporters. “It may happen tomorrow morning.”
Prime Minister Justin Trudeau has said repeatedly that Canada is ready to respond with countermeasures if Trump makes good on his tariff threat. He issued a statement congratulating Trump shortly after his swearing-in, but did not refer specifically to tariffs.
“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,” Trudeau said in the statement.
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