Canada spared U.S. tariffs…for now

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Update: Speaking to reporters in the Oval Office after the inauguration ceremony on Monday, President Trump said his administration is looking at putting 25 per cent tariffs on Canada and Mexico beginning February 1st. “We’re thinking in terms of 25 per cent on Mexico and Canada…I think February 1st…on each.”

Donald J. Trump was sworn in Monday as the 47th President of the United States of America, and Canada collectively held its breath on whether or not the newly-minted president would follow through on his threatened 25 per cent tariffs on all goods moving into the country.

As part of his first day of office, President Trump did sign several executive orders, but none of them levied the tariffs against Canadian, Mexican, or Chinese goods into the U.S. He did, however, refer to planned tariffs in his speech to “enrich our citizens” and that his administration will have an external revenue service to monitor and collect tariffs on imports when or if they do occur.

So while the tariffs were not imposed immediately, that doesn’t mean they won’t happen, and Canada is still standing on guard (for fees?).

Premier of Alberta Danielle Smith was the only Canadian premier at the inauguration and released a statement shortly after the ceremony, saying that Alberta is pleased to see the president holding off on tariffs and instead choosing to 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, businesses and consumers given the integration of our markets, along with our critical energy and security partnership…

“Despite the promising news today, the threat of U.S. tariffs is still very real,” Smith says, adding that she wants to see Canada focus on diplomacy versus talk of retaliatory measures in light of future imposed tariffs.

“The worst possible response to today’s news would be the federal government or premiers declaring ‘victory’ or escalating tensions with unnecessary threats against the United States,” she says.

Shaun Haney spoke on Friday’s Market Day Report on the plan for retaliatory tariffs if Trump imposes the 25 per cent tariff:

Smith also added that Canada should be addressing Trump’s focus on border security, including illegal drug and human movement, expanding funding for Canada’s military, and immediately repeal all federal anti-energy policies — production cap, Clean Electricity Regulations, Impact Assessment Act (Bill C-69) — and fast track Northern Gateway and Energy East projects pre-approvals.

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