Trump to slap Canada with 25 per cent tariffs on goods, 10 per cent on oil starting Tuesday

U.S. President Donald Trump made good on his tariff threat on Saturday, imposing a 25 per cent tariff on Canadian goods and a 10 per cent tariff on energy.

The specifics of the tariffs have not been revealed but they are reportedly scheduled to take effect on Tuesday, February 4.

Prime Minister Justin Trudeau will meet with provincial and territorial leaders later today to discuss Canada’s response.

Canada’s largest union has called for swift retaliation for declaring a “trade war” against Canada and Canadian workers.

“Trump’s decision to go to battle with America’s largest trading partner will hurt working people on both sides of the border and inflict real economic damage to both countries,” said Unifor National President Lana Payne.

“I believe Trump has underestimated Canadians. He has failed to realize that he has enraged and united an entire nation that is ready to fight to defend every last job in this country,” said Payne. “We will never forget this act of hostility against our workers, and we must take every measure possible – utilize every ounce of creativity we have – to build a strong, resilient, and diverse economy to never be held hostage by America again.”

Aside from a retaliatory response, Unifor is calling for other measures including Buy Canadian protocols, leveraging procurement policies to support Canadian jobs and industries as well as enhanced income supports for workers and emergency relief programs to mitigate the risk of layoffs and sustain companies in their operations.

Ontario Progressive Conservative Leader Doug Ford said Saturday during an election campaign stop in Brampton, Ont., that if Trump moved forward with “reckless tariffs” then Canada needed “hit back strong.”

Premiers have disagreed on how Canada should respond if Trump follows through on his threats.

Some say everything must be on the table, while Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have said exports of oil and other resources like potash should not be included in retaliation plans.

The United States imported almost 4.6 million barrels of oil daily from Canada in October, according to the Energy Information Administration.

The federal government has said it has multiple options for retaliatory tariffs ready to deploy, depending on what Trump ultimately does.

Trade Minister Mary Ng posted on social media Saturday that “Our message is clear: while we value our partnership with the United States, Canada is ready to respond firmly to any U.S. tariffs.”

Trump didn’t implement the duties against Canada on his first day back in office, as he’d promised to do. But the president did not back away from his tariff threat and repeatedly suggested the duties would come on Feb. 1.

Uncertainty caused by the looming threat has stalled business investment, said Scott Crockatt at the Business Council of Alberta.

“They can’t justify spending the kind of money that would lead to expansion and job creation in an environment where they’re just not sure what will come next — and this period of uncertainty keeps stretching out,” he said.

Crockatt cautioned the Canadian government against any “knee jerk” reaction that could hurt Canada further, including counter tariffs or embargoes on energy.

Joly, Public Safety Minister David McGuinty and Immigration Minister Marc Miller met with Republican officials, including Trump’s border czar Tom Homan, in the United States capital throughout the week in a last-ditch attempt to avert the tariffs.

The ministers said they shared Canada’s $1.3-billion border security plan, implemented to ease Trump’s concerns. Miller said they also explained facts about the small volume of people and drugs illegally crossing the Canada-U.S. border.

The volume of drugs entering the United States from Canada is minuscule compared to the amounts coming from Mexico and China.

U.S. Customs and Border Protection figures show that officials seized 9,930 kilograms of fentanyl at American borders between October 2023 and September 2024. Only 20 kilograms of that amount came from Canada.

It’s unlikely boosting the border would have made a difference to the president. Trump said Friday that there were no concessions that would stop Canada, Mexico or China from being hit with the levies.

— With files from Aaron Sousa and Lisa Johnson in Edmonton and The Associated Press