Canada relieved Trump does not impose tariffs on first day of presidency

21 January 2025, 01:14

Canada Cabinet Retreat
Canada Cabinet Retreat. Picture: PA

Mr Trump had threatened to impose sweeping tariffs on Canada, Mexico and other trading partners.

Canadian leaders expressed relief on Monday that broad tariffs were not applied to Canadian products on the first day of Donald Trump’s presidency and that he did not mention America’s major trading partner during his inaugural speech.

Mr Trump had threatened to impose sweeping tariffs on Canada, Mexico and other trading partners.

An incoming White House official who insisted on anonymity pointed reporters to a Wall Street Journal story saying Mr Trump will only sign a memorandum telling federal agencies to study trade issues.

Still, Mr Trump pledged in his inaugural address that tariffs would be coming and said foreign countries would be paying the trade penalties, even though those taxes are currently paid by domestic importers and often passed along to consumers.

Canada Cabinet Retreat
Canada’s Minister of Foreign Affairs Melanie Joly and Minister of Finance and Intergovernmental Affairs Dominic LeBlanc speak to reporters (The Canadian Press via AP)

Finance Minister Dominic LeBlanc said reprieve is too strong of a word but said he felt good.

“If they decide to take a close look at the US-Canadian relationship when it comes to trade that’s a very good thing,” Mr LeBlanc said at a Cabinet retreat in Montebello, Quebec. “Both countries are stronger and more secure when we respect and honour the comprehensive free trade agreement.”

Mr Trump said he would establish an external revenue service to collect all tariffs, duties and revenues and that it would lead to “massive amounts of money pouring into our country coming from foreign sources.”

Foreign Minister Melanie Joly said they are “very cautious” but they know they can make sure it is a win-win relationship.

Danielle Smith, the premier of Canada’s oil-rich province of Alberta, said she was “pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further.”

“We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers,” Ms Smith said in a post on X.

Ms Smith said avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector. “Despite the promising news today, the threat of US tariffs is still very real,” she posted.

Trump Inauguration
President Donald Trump salutes while on stage in Emancipation Hall at the 60th Presidential Inauguration (Ron Sachs/Pool Photo via AP)

Canada’s ambassador to Washington, Kristen Hillman, also said she was “pleased” and “cautiously optimistic.”

“Nobody is giving us any assurances,” Ms Hillman told the Canadian Broadcasting Corporation.

“We will feel better when I think we see the details of what he’s asking for in terms of a study.”

Ms Hillman said she would return to Canada on Tuesday to brief the Cabinet.

Canada is one of the most trade-dependent countries in the world, and 75% of Canada’s exports, which include automobiles and parts, go to the US.

Canada is the top export destination for 36 US states.

Nearly US 2.7 billion dollars (£2.2 billion) worth of goods and services cross the border each day.

Despite Mr Trump’s claim that the US does not need Canada, a quarter of the oil America consumes per day is from there.

Mr Trump said he could impose 25% tariffs on Canada and Mexico starting on February 1.

By Press Association

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