The USA puts tariffs against Canada

 

March 5, 2025

The USA has imposed tariffs on Canada. These tariffs are unjustified and appear to be ideological rather than fact-based.

The United States administration has decided to impose 25% tariffs on Canadian exports and 10% tariffs on Canadian energy. This has unsettled most Western nations concerning USA's reliability.

An initial excuse was illegal drugs coming over the border. While less than 1% of the fentanyl intercepted at the US border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. To be cooperative and responsive, we implemented a $1.3 billion border plan with new helicopters with infrared sensing, boots on the ground, more coordination with US security agencies, and increased resources to stop any flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell and established a Canada-U.S. Joint Strike Force on organized crime. In partnership with the United States, fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by US Customs and Border Protection. The drug problem at the border was solved.

To circumvent the legal limits of Presidential Executive Order power versus Congressional Law authority, the topic of fentanyl has been the excuse but not the reality. Canadian border officials captured more drugs coming in from the US than their American counterparts caught going south, according to data from both countries. US Customs and Border Protection data shows far more fentanyl came into the US through their own coastal ports directly, compared to what was seized at the Canadian border last year. Additionally, there would not be such a great drug problem if market demand was reduced through proper drug enforcement within the US.

Canada will not let the unjustified tariffs go unanswered. Canada will respond with 25% tariffs against many American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days. Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the US administration to reconsider their meanspirited tariffs, Canada remains firm in standing for our economy, our workers, and for treaties to be kept. Discussions are ongoing. The existing legal dispute mechanisms are also being used.

Canada should not be punished to pay for American fiscal deficits and USA overspending. Outside of the value of Canadian energy sent to the US, Canada buys more American general goods than it sells southward. Additionally, Canada subsidizes the USA price of its energy sold to the USA.

As a result of these tariffs, Americans will face increased costs for everyday necessities such as groceries, gas, and cars. This could lead to the loss of thousands of jobs. The tariffs disrupt a successful and fair trading relationship and violate the trade agreement that President Trump negotiated in his last term.

Historical data does not support the notion that tariffs will increase jobs and general manufacturing in the USA. While a few jobs may be gained from repositioning, the economic disruption will likely cause larger overall job loss in both the USA and Canada. The accounting numbers make it clear that everyone loses. The new US tariff policy has been made on emotions, without a professional analysis of the facts.

Canada, the USA's greatest friend, has been attacked with hurtful tariffs without justification. The arguments in favour of tariffs fail even the most straightforward analysis.