After months of threats, US President Donald Trump announced that he would impose a 25% tariff on Canadian-made products starting February 1.
In November, Trump first announced his intention to impose a 25% tariff on products from Canada and Mexico, a comment Canadian politicians initially dismissed as a joke. However, on Thursday, January 30, while speaking to reporters at the White House, Trump said he’s proceeding with his plans to impose a 25% tariff on both countries.
“Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly on trade, and we will be able to make that up very quickly,” he said.
Trump is accusing Canada and Mexico of lax border controls that have allowed undocumented immigrants and drugs such as fentanyl to enter the US. In response, Intergovernmental Affairs Minister Dominic LeBlanc said Canada is investing C$1.3 billion in a new border plan.
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“Our new border plan… will secure our border against the flow of illegal drugs and irregular migration while ensuring the free flow of people and goods that are at the core of North America’s prosperity,” said LeBlanc.
Trump said the US has subsidized Canada “to the tune of $175 billion a year” and warned that the 25% tariff rate could only be the beginning.
“Those tariffs may or may not rise with time,” he said, adding that China could also soon pay a tariff.
Tariffs could lead to job cuts
According to the Canadian Chamber of Commerce, 1.4 million American jobs are tied to Canadian exports, while 2.23 million Canadian jobs are tied to US exports.
“Every day, $3.6 billion in goods crosses the Canada-US border, fueling a $1.3 trillion annual trade relationship,” reads the site.
A 25% tariff could lead to Canada’s GDP shrinking by 2.6%, while the average Canadian household could end up paying an additional C$1,900 yearly.
“The stakes couldn’t be higher,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce. “Tariffs and trade barriers jeopardize jobs, industries, and families across both sides of the border.”
Canadians react to tariff threats
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With the US set to implement a 25% tariff on Canada-made products starting this Saturday, some Canadians said they plan to take matters into their own hands.
In 2024, frustrated shoppers created a subreddit called “Loblaws Is Out of Control” about soaring food prices at Loblaw-owned stores and other major grocery chains. The group launched a nationwide boycott against all Loblaw-owned stores.
Now, members of the group are turning their attention to US-made products.
“Folks, over the last year, we have successfully boycotted Loblaws-owned establishment,” reads a post. “Now we should boycott all products from USA in light of 25% tariff imposed by you know who!!”
The Redditor then urged Canadians to stop vacationing in the US and buying US-made products.
“I boycotted Walmart during the first Trump presidency. It will be harder this time since I’m also boycotting Loblaws, but Canada needs to pull together,” reads one reply.
With files from Isabelle Docto