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MONTREAL — Uncertainty reigns ahead of a looming U.S. tariff deadline next week, with businesses stuck in a holding pattern that has halted capital investment, hiring and financial forecasts at some firms amid a trade war where the next steps — and even who counts as a friend — remain foggy.
U.S. President Donald Trump has pledged sweeping duties on imports from across the globe, including Canada, starting this Wednesday. But new details emerge almost daily from a White House that has changed, delayed or walked back much of its tariff plans over the past two months, including after a Friday phone call between Trump and Prime Minister Mark Carney described by the Liberal leader as “constructive.”
“Nobody knows what the heck is going on,” said Goldy Hyder, CEO of the Business Council of Canada.
“You’re literally dealing with an environment where things are being made up as they go.”
The U.S. has already hit Canada and Mexico with 25 per cent levies on steel and aluminum as well as goods that are not compliant with the North American free trade pact. The pause on tariffs for items that do comply is set to expire on April 2 — but the extent and severity of that duty remains in doubt.
A senior Ontario government source told The Canadian Press that, as of Thursday, Canada was poised for inclusion in a group of so-called “friendly” countries that would receive milder tariff treatment.
U.S. trade representatives informed their Ontario counterparts that Trump has carved out two other categories — one for “medium” tariffs and a third simply dubbed “China” — according to the source, who was not authorized to speak publicly on the matter.
The details of those groupings are unclear. That fuzziness adds to a broader atmosphere of uncertainty ushered in by ever-evolving tariff threats that has chilled investment and frozen decisions on everything from hiring to marketing at companies across the country.
“They’re not starting that new line, they’re not planning that new expansion. They’re cancelling the new brand or the new product they were going to launch in the U.S. or Canada,” said Matthew Holmes, head of public policy at the Canadian Chamber of Commerce.
“The constant drumbeat of tariffs — it’s going to be on this date, no it’s going to be on that date … now we’re doing a surprise one this week, just cause — is unpredictable and stress inducing.”
The “one this week” referred to Trump’s latest announcement of 25 per cent tariffs on imported vehicles. Catching Canada off-guard, the tariffs are set to take effect on April 3, with levies on auto parts slated for May 3 or later.
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