However, a White House official has stated that this timeline could change, depending on negotiations between the two countries. There have been no updates on the progress of talks, meaning the tariffs remain on track as originally planned.
Earlier this month, Canada was granted a temporary 30-day pause on these tariffs, thanks to Prime Minister Justin Trudeau’s direct discussions with President Trump. Over two phone calls, Trudeau presented Canada’s plans to address border security and combat the opioid crisis, particularly the flow of fentanyl into the U.S. This was an effort to avoid the economic damage the tariffs could cause. Trump had previously indicated that tariffs on steel and aluminum would follow on March 12, and that further measures, including “reciprocal tariffs,” would come into play in early April.
During a press briefing, Trump seemed to confuse the timing of these tariff impositions, suggesting the 25 per cent levies would be applied on April 2, 2025, to both Canada and Mexico. However, U.S. Commerce Secretary Howard Lutnick clarified that the original March 4 date still stands, framing the tariffs as being related to the fentanyl crisis. Lutnick further explained that, at the end of the 30-day grace period, Canada would need to demonstrate it had satisfied the president’s concerns regarding the fentanyl trade. If Canada meets these conditions, the tariffs could be delayed further.
The issue of fentanyl has been central to Trump’s rationale for the tariffs. U.S. Customs and Border Protection data shows that around 49 pounds of fentanyl were seized at the Canada-U.S. border over the past year. This contrasts sharply with the 19,500 pounds seized at the U.S.-Mexico border during the same period. Trump has repeatedly linked this issue to Canada, even claiming that much of the fentanyl reaching the U.S. originates from there.
In response to the looming tariffs, Canadian officials have been carefully monitoring developments. Industry Minister François-Philippe Champagne emphasized the importance of taking a cautious approach, listening closely to Trump’s statements, and ensuring that any actions are based on official orders. Canada’s Foreign Affairs Minister Mélanie Joly acknowledged that Trump holds the final say on tariff decisions but reaffirmed Canada’s readiness to retaliate with its own $155 billion tariff plan should the U.S. proceed with the levies.
Economists, including former Bank of Canada governor Stephen Poloz, have warned that the imposition of these tariffs could severely impact Canada’s economy, potentially leading to a permanent reduction of about 5 per cent in the nation’s overall economic output. Meanwhile, Trump’s broader plan to impose reciprocal tariffs, which would affect imports from any country that taxes U.S. goods similarly, is also scheduled to move forward in April.
With the clock ticking down to the March 4 deadline, all eyes are on the ongoing negotiations and whether Canada can secure a lasting exemption from these potentially damaging tariffs.
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