Trump to go ahead with 25 per cent tariff on Canada tomorrow, White House says
The White House has confirmed that President Donald Trump will move forward with a 25% tariff on Canadian and Mexican imports, as well as a 10% tariff on Chinese goods, effective February 1, 2025. The decision, announced by White House Press Secretary Karoline Leavitt, comes despite earlier speculation of a delay and has sparked concerns of a looming trade war.
During a press briefing, Leavitt dismissed reports suggesting the tariffs might be postponed until March, stating, “The president will be implementing a 25% tariff on Mexico, 25% tariffs on Canada, and a 10% tariff on China tomorrow.” She emphasized that the move is tied to concerns over illegal fentanyl distribution and trade imbalances, calling it a fulfillment of Trump’s promises.
The announcement follows weeks of uncertainty and conflicting signals from the Trump administration. Earlier reports from Reuters had indicated that the tariffs might include exemptions for certain imports, but Leavitt clarified that no such concessions have been finalized.
In response, Canadian Prime Minister Justin Trudeau warned of immediate and proportional retaliation. Speaking ahead of a meeting with his Canada-U.S. relations council in Toronto, Trudeau acknowledged the potential for economic hardship but vowed to stand firm.
“I won’t sugarcoat it. Our nation could be facing difficult times in the coming days and weeks,” Trudeau said. “But we are ready with a purposeful, forceful, and reasonable response.”
Canada’s retaliation plan includes a three-phase approach:
- Targeting specific U.S. consumer goods, such as Kentucky bourbon and Florida orange juice.
- Imposing tariffs on $37 billion worth of U.S. products.
- Expanding trade action to an additional $110 billion in manufacturing and other goods if necessary.
The federal government is also preparing a stimulus package to support Canadian businesses affected by the tariffs, with the scale of relief depending on the severity of the U.S. measures.
The tariffs are expected to have significant economic consequences for both countries. According to the Canadian Chamber of Commerce, a 25% tariff could shrink Canada’s GDP by 2.6% and cost households an average of 1,900annually.IntheU.S.,themovecouldleadtoa1.61,900annually.IntheU.S.,themovecouldleadtoa1.61,300 annual cost to American households.
The economic impact is particularly concerning given the deep trade ties between the two nations. Daily, $3.6 billion in goods cross the Canada-U.S. border, and Canada is the top export market for 34 U.S. states, supporting millions of jobs and businesses.
Trump has justified the tariffs by citing concerns over illegal drugs and migrants crossing the U.S.-Canada border. Despite Canada’s $1.3 billion border security plan—which includes deploying patrol helicopters, canine teams, and imaging tools—the president has dismissed these efforts as insufficient.
“Our border is safe and secure, and less than 1% of fentanyl and illegal crossings into the United States come from Canada,” Trudeau said, reiterating Canada’s commitment to addressing U.S. concerns.
Canadian officials are continuing their efforts to persuade U.S. lawmakers to halt the tariffs. Federal cabinet ministers are in Washington, D.C., meeting with Republican leaders, while Trudeau has urged direct dialogue with Trump.
“I think Justin Trudeau would be wise to talk to President Trump directly before pushing outlandish comments to the media,” Leavitt said, responding to Trudeau’s remarks.
The tariffs are part of Trump’s broader strategy to address trade deficits and security concerns. On Thursday, the president criticized Canada and Mexico for what he called unfair trade practices, stating, “They’ve treated us very unfairly on trade.”
Trump initially threatened tariffs in November 2024 but delayed implementation pending a study of broader trade practices. The February 1 deadline marks a significant escalation in his trade policy, with the potential for further adjustments.
As the tariffs take effect, both countries brace for economic and political fallout. Trudeau has vowed that Canada “won’t back down” and will continue to push for the removal of tariffs. Meanwhile, Trump is expected to sign additional executive orders later today, which may provide further clarity on his trade strategy.