Feb 4: Trump Imposes 25% Tariff on Canadian Goods & 10% on Energy

The U.S. President Donald Trump has signed an executive order to impose a 25 per cent tariff on all exports from Canada except energy, which will be tariffed at 10%.

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“Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump posted on Truth Social.

 

“We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.”

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The text of part of the executive order, posted on X, states, “Such rate of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, except that goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to CBP as specified in the Federal Register notice.”

 

“With respect to energy or energy resources, as defined in section 8 of Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency), and as otherwise included in the Federal Register notice, such articles that are products of Canada as defined by the Federal Register notice shall be, consistent with law, subject to an additional 10 percent ad valorem rate of duty. Such rate of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, except that goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to CBP as specified in the Federal Register notice.”

According to the factsheet published by the White House, trade accounts for 67% of Canada’s GDP, 73% of Mexico’s GDP, and 37% of China’s GDP, but only 24% of U.S. GDP.

Per the factsheet, tariffs will remain until the “threat of illegal aliens and deadly drugs” is alleviated.

Alberta’s Premier Danielle Smith responded stating, “Alberta will do everything in its power to convince the U.S. President and Congress, as well as the American people, to reverse this mutually destructive policy.”

“We note the reduced 10 per cent tariff for Canadian energy. That is partially a recognition of the advocacy undertaken by our government and industry to the U.S. Administration. We’ve pointed outthe substantial wealth created in the U.S. by American companies and tens of thousands of American workers who upgrade and refine approximately $100 billion of Canadian crude into $300 billion of product sold all over the world by those same U.S. companies.”

“Alberta will also work collaboratively with the federal government and other provinces on a proportionate response to the imposed U.S. tariffs through the strategic use of Canadian import tariffs on U.S. goods that are more easily purchased from Canada and non-U.S. suppliers. This will minimize costs to Canadian consumers while creating maximum impact south of the border. All funds raised from such import tariffs should go directly to benefit the Canadians most harmed by the imposed U.S. tariffs.”

Ontario Premier Doug Ford stated on X, “As Premier of Ontario, the federal government has my full support for a strong and forceful response that matches U.S. tariffs dollar for dollar. Canada has so much of what America needs: high-grade nickel and other critical minerals, energy and electricity, uranium, potash, aluminum. We need to maximize our points of leverage and use them to maximum effect. The federal government needs to also pursue every legal route to challenge these unfair, unjustified and illegal tariffs.”

Prime Minister Justin Trudeau is expected to address the tariffs at 8:30 p.m. today along with the Minister of Foreign Affairs, Mélanie Joly, the Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, and the Minister of Public Safety, David J. McGuinty.

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