TORONTO — Canadian officials expressed a sense of relief on the first day of Donald Trump’s presidency, as widespread tariffs on Canadian goods were not enforced, and the country was not mentioned in his inaugural address.
Trump had previously threatened to introduce substantial tariffs impacting Canada, Mexico, and other trading nations. An anonymous official from the incoming administration pointed to a report indicating that Trump’s initial actions would involve a memorandum directing federal agencies to review trade matters rather than imposing immediate tariffs.
Despite this, Trump committed during his inaugural speech to the implementation of tariffs, asserting that foreign nations would bear the financial burden, even though these tariffs are typically paid by domestic importers and subsequently shifted to consumers.
Canada’s Finance Minister, Dominic LeBlanc, acknowledged that while “reprieve” might be too strong a term, he felt optimistic about the state’s trade relations. He emphasized the importance of scrutinizing U.S.-Canada trade ties, stating, “Both countries are stronger and more secure when we respect and honor the comprehensive free trade agreement.”
Trump also indicated plans to set up an external revenue service responsible for collecting all tariffs and duties, claiming it would result in substantial funds flowing into the U.S. from foreign sources.
Foreign Minister Mélanie Joly expressed a “very cautious” optimism, voicing confidence in fostering a mutually beneficial relationship between the two nations.
Alberta’s Premier, Danielle Smith, expressed her satisfaction with Trump’s decision to hold off on tariffs as the administration continues to evaluate the matter. In a message shared on X, she said, “We appreciate the implied acknowledgment that this is a complex and delicate issue with serious implications for American and Canadian workers.”
Smith noted that avoiding tariffs could prevent the loss of hundreds of thousands of jobs across various sectors in both countries. However, she cautioned that the threat of U.S. tariffs remains a genuine concern.
Canada’s ambassador to the U.S., Kristen Hillman, shared similar feelings of happiness and cautious optimism, indicating that she would feel more assured once the details of the announced study were available. Hillman planned to return to Canada for a Cabinet briefing.
With its economy heavily reliant on trade, Canada sends 75% of its total exports, including vehicles and auto parts, to the United States. Notably, Canada serves as the primary export destination for 36 states in the U.S., with nearly $3.6 billion CAD (approximately $2.7 billion USD) in goods and services exchanged each day across the border.
Although Trump has stated that the U.S. does not rely on Canada, it is worth noting that Canada supplies a quarter of the oil consumed daily in the United States.
