U.S. President Donald Trump has announced his administration’s intent to impose 25% tariffs on all Canadian and Mexican imports beginning February 1, citing immigration and drug concerns as primary factors.
Speaking from the White House on Monday evening while signing unrelated executive orders, Trump said, “We are thinking in terms of 25% on Mexico and Canada because they are allowing vast numbers of people — Canada is a very bad abuser also — and fentanyl to come in.”
While Trump hinted at the imminent tariffs, an executive order signed later in the evening directed federal agencies to study trade issues, including alleged unfair practices by Canada, Mexico, and China, with a report due by April 1 — two months after the proposed tariff implementation.
The announcement has sparked strong reactions from Canadian officials. Foreign Affairs Minister Mélanie Joly described the development as an “important moment for Canadians” and called for unity across political lines to defend the country’s interests.
“We’re calling on every political leader in Canada to stand united. Now more than ever, we must put the country first,” Joly said during a cabinet retreat in Montebello, Quebec.
Finance Minister Dominic LeBlanc expressed readiness for retaliatory measures, noting that Canada has prepared responses for various scenarios. Federal government sources indicate that if the 25% tariffs are enacted, Canada may impose countermeasures worth approximately $37 billion, with additional tariffs totaling $110 billion possible if the situation escalates.
Trump also floated the idea of imposing a universal tariff on all countries, stating, “We’re not ready for that yet, but essentially all countries take advantage of the U.S.”
Implications for Canada-U.S. Relations
Trade Minister Mary Ng reassured Canadians that Ottawa has taken a collaborative “Team Canada” approach to demonstrate the negative impact of tariffs on U.S. jobs.
“Canada is ready and prepared for any scenario,” Ng said.
Liberal MP John McKay, co-chair of the Canada-U.S. interparliamentary group, acknowledged the gravity of the situation but stressed the importance of sticking to facts amid escalating rhetoric.
“The claim that Washington is subsidizing Canada at $100 billion annually is just nonsense,” McKay said during an interview at the Canadian embassy in Washington.
Alberta Premier Danielle Smith struck a different tone, suggesting that Canada could leverage Trump’s desire for energy dominance to strengthen bilateral ties.
“Americans want global energy dominance, and Canada can be a perfect partner,” Smith said, emphasizing stable oil and gas supplies.
However, Smith faced criticism for refusing to sign a joint statement with other premiers and Prime Minister Justin Trudeau, which promised all countermeasures would be considered, including levies on oil exports.
Trump’s second inaugural address earlier on Monday focused on immigration concerns and trade reforms aimed at “protecting American workers and families.” He reiterated his commitment to using tariffs as a tool to enrich American citizens rather than other nations.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said.
The inauguration ceremony, held inside the U.S. Capitol due to cold weather, featured notable attendees including former U.S. presidents Barack Obama, George W. Bush, and Bill Clinton, as well as Canadian Industry Minister François-Philippe Champagne.
Outside the Capitol, thousands of Trump supporters gathered in frigid temperatures to celebrate the occasion, many expressing optimism about the administration’s economic promises.
Kenneth Johnson of Boulder City, Nevada, said, “Our nation’s going to be back under control,” while Daniel Blake from Connecticut expressed enthusiasm for smaller government and reduced corruption.
As Canada braces for the potential economic fallout, federal and provincial leaders are urging caution, collaboration, and unity to safeguard national interests in the face of heightened U.S. protectionism.