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As Trump's tariffs loom yet again, Canada is left waiting to see what happens

As Trump's tariffs loom yet again, Canada is left waiting to see what happens

CBC
Sunday, March 02, 2025 08:59:19 PM UTC

Canada is again staring down the barrel of massive U.S. tariffs on Canadian goods. With only days to go until U.S. President Donald Trump kicks off a trade war, Internal Trade Minister Anita Anand says Canada will need to wait and see what happens.

Anand, who met with U.S. officials in Washington this week, said Canada continues to stress that tariffs are harmful for both countries as the clock winds down to March 4 — when Trump will hit Canada with an economy-wide tariff of 25 per cent.

"We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country's economy," Anand said in an interview on Rosemary Barton Live.

On Sunday morning, U.S. Secretary of Commerce Howard Lutnick told Fox News: "There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are — we're going to leave that for the president and his team to negotiate."

Lutnick's words suggest there's talk in Washington about going part-way and not unleashing the full tariff immediately. Canada-U.S. trade watcher Dan Ujczo predicted this possibility earlier this week in an interview with CBC News.

He said Trump would likely go for something in the middle — between backing away from tariffs and charging ahead full-steam. 

"In the middle, there are a range of options," said Ujczo, senior counsel at Ohio-based Thompson Hine. 

Those options include a tiny tariff that is scheduled to grow incrementally each month; a big tariff set to expire under certain conditions; and a delayed phase-in. 

While recounting her conversations with U.S. lawmakers, Anand told host Rosemary Barton "the sense across the system is one of needing to wait and see what happens" on Tuesday, when the tariffs are slated to go into effect.

"We see numerous dates on different goods coming from the White House, and the only rational response from the Canadian government is the one that we are taking," Anand said, referring to Ottawa's earlier threat to impose $155 billion in countertariffs.

"We will put that out if and when the Trump administration comes forward with its proposed 25 per cent tariffs," Anand added.

To add to the uncertainty, Trump has also promised 25 per cent tariffs on all steel and aluminum imports, which he plans to impose on March 12. He's also threatened 25 per cent tariffs on auto, semiconductor and pharmaceutical imports as early as April 2.

Over the last two months, Canadian officials have spent time and money securing the Canada-U.S. border and cutting down the flow of migrants and deadly fentanyl into the United States — which Trump routinely argues motivates his tariffs.

Erin O'Gorman, president of the Canada Border Services Agency (CBSA), said on Rosemary Barton Live her agency is "surging on multiple fronts, including fentanyl, including on removals and really pushing the limits in terms of joint operations."

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