U.S. President Donald Trump has yet to implement his promised 25% tariffs on Canadian imports, providing Canadian leaders with a window of opportunity to negotiate. While the delay offers temporary relief, federal and provincial leaders remain cautious about the potential economic fallout.
Prime Minister Justin Trudeau and his cabinet gathered at a retreat in Montebello, Quebec, to address the impending trade challenges. Foreign Affairs Minister Mélanie Joly emphasized that while the delay was positive news, the government remains focused on preventing tariffs and preparing a strategic response.
“This was news today,” Joly said. “It is important news, and at the same time, we’ll be working on preventing tariffs and preparing a response, while thinking long-term about diversifying our economy and addressing trade barriers between provinces.”
A senior Canadian official told CTV News the delay could offer up to six months of tariff reprieve as Trump’s administration studies cross-border trade dynamics.
In response to Trump’s tariff threats, Canada has mounted a coordinated effort, including a rare meeting between the prime minister and provincial premiers and the creation of a Canada-U.S. relations council. The council, composed of 18 prominent Canadians, will advise on strengthening bilateral relations.
While Trudeau refrained from commenting directly on Trump’s decision during the retreat, he congratulated the 47th U.S. president in a statement:
“We are each other’s largest trade partners, with a relationship that creates millions of jobs and attracts billions in investment,” Trudeau said, adding that he looks forward to working with Trump during his second term.
Ontario Premier Doug Ford, wearing a cap reading “Canada is not for sale” during last week’s First Ministers’ meeting, expressed deep concern over the uncertainty surrounding Trump’s next moves.
“He’s coming for us,” Ford said, warning that Ontario, as Canada’s manufacturing hub, is likely to be a target. Ford has threatened drastic countermeasures, including cutting electricity exports to U.S. states as a “last resort,” though he clarified that his comments were aimed at defending Canadian workers.
Ford also unveiled an energy initiative, “Fortress Am-Can,” to expand Ontario’s nuclear infrastructure and bolster energy exports to the U.S.
Alberta Premier Danielle Smith, attending Trump’s inauguration in Washington, D.C., struck a more optimistic tone. She highlighted the delay as an opportunity to address long-standing trade “irritants” between Canada and the U.S., including border security, illegal drugs, and Canada’s NATO spending commitments.
Smith suggested that emphasizing the mutual benefits of the Canada-U.S. economic relationship could help avoid tariffs altogether, but cautioned against complacency.
As Trump’s administration evaluates U.S. trade policies, Canadian leaders are working to mitigate risks and maintain economic stability. The federal government has prepared a three-phase counter-tariff response to deploy if needed.
For now, the delayed tariffs provide a brief window for Canada to strengthen its position in ongoing trade negotiations with its largest trading partner.