Ottawa Prepares for U.S. Tariffs as Trump Signals Targeted Trade Measures
OTTAWA — Canada is bracing for new U.S. tariffs, and President Donald Trump says he will announce trade measures against Canada and Mexico on Saturday, February 1.
While Trump has previously threatened a sweeping 25 per cent tariff on all Canadian goods entering the U.S., he hinted this week that the levies could be more targeted. The White House has indicated the focus may be on steel, aluminum, semiconductors, and pharmaceuticals—potentially sparing Canada’s oil and gas sector.
With the scope and scale of the trade measures still unknown, Ottawa is preparing potential economic aid for affected industries, with support packages expected to resemble the financial relief rolled out during the COVID-19 pandemic.
The looming tariffs have raised concerns of a prolonged trade dispute between the two countries, with officials working behind the scenes to mitigate potential economic fallout.
Canada remains the United States’ largest trading partner, with billions of dollars in goods crossing the border daily. The scope and economic impact of a trade dispute has economists on both sides of the border expressing grave concern.