Trump says 25 per cent tariff on Canada could go into effect Feb. 1
United States President Donald Trump said Monday night that he thinks a 25 per cent tariff on Canadian imports could go into effect on Feb. 1, capping a roller-coaster first day in office in which no specific tariff measures were implemented.
Trump made the comments to media during an Oval Office session in which he signed numerous executive orders.
While Trump had initially vowed to implement tariffs on his first day in office, reports on Monday indicated the measures would be delayed.
Instead, he planned to issue a memo directing federal agencies to study “unfair trade practices” committed by Canada, Mexico and China, according to U.S. media.
Trump had initially tied the notion of tariffs to concerns over the U.S.-Canada border, but later blamed imbalances in the U.S.-Canada trade relationship. Canada has promised a suite of countermeasures if Trump follows through on his threat.
The memorandum, among the numerous executive orders Trump signed late Monday night, directs federal agencies to review whether Canada and Mexico are in compliance with Canada-U.S.-Mexico Agreement. It also includes the establishment of an “External Revenue Service” to collect revenue from tariffs.
Despite the apparent pause on tariffs, Trump used his inaugural address to declare his protectionist intentions.
“I will immediately begin the overhaul of our trade system to protect American workers and families,” Trump said. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”
Earlier in the day, Canadian business leaders were hesitant to declare victory, as the tariff threat remained on the table.
“Let’s call it what it is, which is a time out,” said Business Council of Canada
Read more on financialpost.com
