Although Canada and Mexico were able to avoid the reciprocal tariffs that U.S. President Donald Trump Announced today (wed), dozens of other countries weren’t so lucky. At what looked like a ceremony in the White House Rose Garden behind the White House Trump announced that he will increase duties to match half of the tariff rates that other countries charge on U-S imports.
For example, the European Union has 39 per cent tariffs on American goods, so the United States will place 20 per cent tariffs on EU products. He also placed a 25 per cent tariff on all foreign-made automobiles as of 12:01 a.m. Thursday.
President Trump, claimed that former U.S. governments made unfair trade deals with other nations. He held up a chart of countries which he cited as the worst offenders. China topped the list, along with Vietnam, Japan and the European Union. Canada was not on the list. Trump called these tariffs ‘kind reciprocal, not full reciprocal’. He explained, “But, what we do is we cut it in half. You can complain if you want. For your tariff rate to be zero, then you build your product right here in America.”
Prime Minister Mark Carney stated, “The series of measures will directly affect millions of Canadians. We are going to fight these tariffs with counter measures. We are going to protect our workers and we are going to build the strongest economy in the G7.” Carney notes that Canada still has tariffs. “The fentanyl tariffs still remain in place as do the tariffs for steel and aluminum. As of this evening (Wed), the tariffs on automobiles will enter into force and the U.S. has signaled that there will be additional tariffs in so called strategic sectors – pharmaceuticals, lumber and semi-conductors.
Canada and Mexico were exempt from Wednesday’s overall reciprocal tariffs, although over 60 other countries weren’t as lucky. The Prime Minister will meet with members of the Canada/US council Wednesday evening, before talking to the Premiers tomorrow (Thursday) morning.
Premier Scott Moe issued a statement shortly after U.S. President Donald Trump announced his global tariffs, saying the provincial government is seeking confirmation on the details, although it looks like not further tariffs were imposed on Canada. However, he adds that they remain concerned about the previously announced tariffs on Canadian steel and lumber and will continue to engage with the U.S. to have these tariffs removed.
Moe suggests that Canada’s approach of a coordinated, strong and measured response while continuing to engage with U.S. government officials has been successful. He adds the Saskatchewan will continue to make the case that free and fair trade benefits both sides of the border. Moe sys the work continues in Saskatchewan to increase our export markets in the U.S. and around the world.
His statement ends with the promise to continue to make life more affordable for Saskatchewan people through income tax reductions and the complete elimination of the carbon tax. The federal government eliminated the consumer carbon tax on April 1st and the provincial government eliminated the tax for heavy industrial emitters.
The Canadian Federation of Independant Business says Canada and Mexico’s exemption from reciprocal tariffs is welcome news. Prairie Director of the CFIB, Brianna Solberg, says the looming deadline itself, ahead of the tariffs announcement was a concern, causing disruption and uncertainty in the markets.
Despite not being a part of the sweeping new tariffs, Solberg says small businesses are already feeling the impacts of the existing tariffs previously announced. “Many of them are citing rising costs. They worry about a weaker Canadian dollar, lower demand for their product and ultimately, pricing difficulties.” The CFIB’s March Business Barometer indicated the lowest level of small business confidence ever, even lower than during the pandemic, 9-11, and the financial crisis of 2008.
