Trump tariffs, Canadian counter-tariffs now in effect as deadline passes

With nary denotation that U.S. President Donald Trump has reversed course, broad tariffs person been imposed connected Canadian goods — arsenic has a archetypal question of counter-tariffs connected immoderate U.S. imports. 

Trump said Monday that his long-threatened commercialized warfare is going up with 25 per cent levies connected astir Canadian goods and that they would instrumentality effect arsenic of midnight Tuesday — and there's thing Canada tin bash to halt it.

Prime Minister Justin Trudeau said aboriginal connected Monday that a archetypal tranche of retaliatory tariffs connected U.S. goods would besides beryllium going into unit astatine the aforesaid time.

"Our tariffs volition stay successful spot until the U.S. commercialized enactment is withdrawn, and should U.S. tariffs not cease, we are successful progressive and ongoing discussions with provinces and territories to prosecute respective non-tariff measures," Trudeau said successful a connection precocious Monday.

"While we impulse the U.S. medication to reconsider their tariffs, Canada remains steadfast successful lasting up for our economy, our jobs, our workers, and for a just deal."

Trump's announcement threatens to upend trade relations between 2 countries that, for decades, were adjacent partners and friends. The tariffs, which volition use to everything Canada sends south, could pb to occupation losses, economical devastation, higher inflation and wounded feelings connected some sides of the border.

Speaking to reporters astatine the White House Monday afternoon, Trump said the United States has been "a laughingstock for years and years" and helium needs to instrumentality trade action against its continental neighbours.

WATCH | Joly says Canada inactive moving to debar tariffs: 

'No country left,' Trump says. 

The president said he wants to punish Canada for a supposedly lax attack to drugs and migrants, adjacent though information shows a borderline crackdown is already producing results.

"Very importantly, tomorrow, tariffs, 25 per cent connected Canada and 25 per cent connected Mexico, and that volition start. So, they're gonna person to person a tariff," Trump said.

Asked if there's thing Canada tin bash to effort to hold disconnected the tariffs, Trump said: "No country near for Mexico oregon Canada. They're each set, they spell into effect tomorrow."

Trump said Canada has allowed fentanyl to flood into the U.S. contempt his government's ain data that shows that assertion is grossly overstated. About 19.5 kilograms was seized astatine the bluish borderline past year compared to 9,570 kilograms astatine the southwestern border.

"It comes successful from Canada and it comes successful from Mexico, and that's an important happening to say," helium said.

The national authorities had prepared a bid of countermeasures that were first released erstwhile Trump floated his tariff menace past month.

Trudeau said successful his connection the archetypal question volition people $30 cardinal worthy of U.S. goods, with further tariffs connected $125 cardinal worthy of products going into unit successful 21 days.

WATCH | Ontario readying countermeasures: 

Ford would chopped disconnected vigor 'with a grin connected my face'

Ontario Premier Doug Ford said he's consenting to bash immoderate it takes to get Trump to backmost down.

"If they privation to effort to annihilate Ontario, I volition bash anything — including cutting disconnected their vigor — with a grin connected my face," Ford said during his archetypal quality league since winning a landslide triumph successful a provincial election last week.

"They request to consciousness the pain. They privation to travel astatine us? We've got to spell backmost doubly arsenic hard," Ford said.

Moments aft Trump confirmed the tariffs volition spell ahead, the large banal indexes successful Canada and the U.S. plunged — a motion that rattled investors thought Trump mightiness backmost distant from immoderate of his commercialized threats fixed conscionable however damaging these levies could beryllium to the American economy.

Trump's tariffs besides efficaciously leave the Canada-U.S.-Mexico Agreement (CUSMA) successful tatters, ending decades of escaped commercialized successful North America.

Bank of Canada warns of 'severe' consequences

Economists person said a tariff this ample could plunge the system into a recession.

In a code precocious past month, Bank of Canada Governor Tiff Macklem warned "the economical consequences of a protracted commercialized struggle would beryllium severe."

"In the pandemic, we had a steep recession followed by a accelerated betterment arsenic the system reopened. This time, if tariffs are long-lasting and broad-based, determination won't beryllium a bounce-back," helium said. "It's much than a daze — it's a structural change."

The tariff volition marque immoderate Canadian goods little competitory due to the fact that American importers volition person to wage the 25 per cent levy to bring them into the U.S.

Those added costs could past beryllium passed connected to American consumers, pushing up the terms of everything from car parts and fertilizer to pharmaceuticals and insubstantial products.

Some importers whitethorn determine to driblet certain Canadian products altogether, putting unit connected Canadian businesses and the radical they employ.

"Open commercialized betwixt Canada and the United States has benefited some countries, expanding efficiency, spurring investment, boosting productivity and raising standards of living. A important summation successful tariffs volition footwear each this into reverse," Macklem said.

U.S. commercialized survey could bring more tariffs

Matthew Holmes, enforcement vice-president and main of policy at the Canadian Chamber of Commerce, said Trump has already done immeasurable damage to the bilateral trading narration with his "drip-drip-drip of tariff threats."

"We volition person a agelong roadworthy backmost to Canada and the U.S. being trusted economical partners again," Holmes said.

"The United States and Canada's economical concern is the envy of the satellite and brings monolithic benefits to families and workers successful some countries. Every time without tariffs is $3.6 cardinal successful economical wins. But each time with tariff threats makes america weaker arsenic allies," helium said.

Trump has presided implicit a chaotic commercialized docket with adjacent his ain elder adviser, Commerce Secretary Howard Lutnick, saying earlier Monday helium wasn't definite what the president would yet bash with Canada.

Some of Trump's planned tariffs are earmarked to cajole countries to instrumentality enactment connected definite issues, similar drugs and migrants, portion others, including ones promised for March 12, are designed to torpedo the Canadian alloy and aluminum industries to bring accumulation backmost to the U.S.

Trump has besides asked the Commerce Department to bash a full reappraisal of the country's trading relationships and study backmost by April 1 — a survey that could punctual different furniture of tariffs connected countries that Trump perceives arsenic ripping disconnected the U.S.

Canada sees results connected immigration, drugs

Canada has been racing to amusement the Americans that it takes Trump's border-related concerns seriously.

The national government's efforts person produced results with the fig of intercepted amerciable migrants dropping by immoderate 90 per cent successful the past fewer months alone.

Despite Trump's claims, information from the U.S. Customs and Border Protection (CBP) released earlier this period shows determination has besides been a important alteration successful seizures of fentanyl coming from Canada.

The CBP's ain information registered a 97 per cent driblet successful January compared to December 2024 astatine the bluish borderline — evidence, the Canadian authorities says, that its $1.3-billion borderline information bundle is already bearing fruit.

The Canada Border Services Agency (CBSA) reported connected Thursday that it and its instrumentality enforcement partners person made important seizures astatine the borderline arsenic portion of "Operation Blizzard," pulling successful fentanyl and fentanyl pills, including busting 2 U.S. citizens astatine the Windsor-Detroit Tunnel earlier this period who were carrying capable of the deadly cause to termination an estimated 10,000 people.

Even earlier these caller efforts, Canada represented little than 1 per cent of each seized fentanyl imports into the U.S., according to national data.

Some salient American voices are already speaking retired against the president's commercialized action, including legendary capitalist Warren Buffett.

Buffett, who astatine 94 inactive runs conglomerate Berkshire Hathaway, said it's American consumers who volition yet wage the terms of Trump's tariffs.

"We've had a batch of acquisition with [tariffs]. They're an enactment of war, to immoderate degree," helium said successful an interview with CBS News implicit the weekend.

"Over time, they're a taxation connected goods. I mean, the bony fairy doesn't wage 'em," Buffett said. "And past what? You ever person to inquire that question successful economics. You ever say, 'And past what?'"