President Trump says 25% tariffs on Canada and Mexico will go forward. “It will be very good for our country. Our country will be extremely liquid and rich again.”

Trump says he’ll hit Canadian goods with 25% tariff next week after month-long pause

‘The tariffs are going forward on time, on schedule,’ U.S. president says

JUST IN: 🇺🇸 President Trump says 25% tariffs on Canada and Mexico will go forward. “It will be very good for our country. Our country will be extremely liquid and rich again.”
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Trump indicates Canada, Mexico tariffs will take effect next week

President Donald Trump indicated that he intends to go ahead with plans to impose a 25 percent tariff on all Canadian and Mexican goods.

President Donald Trump indicated on Monday that he intends to go ahead with plans to impose a 25 percent tariff on all Canadian and Mexican goods beginning early next week.

“The tariffs are going forward on time, on schedule,” Trump said at a joint press conference with French President Emmanuel Macron, who is in Washington for talks on Ukraine and other matters.

What are the ramifications?

The threat of a tariff war is already driving up housing costs

Industry experts say if threats continue, builders will stop projects until costs become more certain

Many high-rise buildings need I-beams. In fact, they need a lot.

Also known as a wide flange beam, the I-shaped component is used in multi-unit buildings, including residential and commercial ones.

According to Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, a 20-storey building would take “thousands of tonnes of I-beams.”

“It’s a crucial part of a builder’s inventory. Nothing can be done without those,” Loomis said.

It turns out Canadian builders buy most of these crucial parts from steel companies based in the United States.

Workers prepare to load approximately 580 tonnes of jumbo steel I-beams onto semi-trucks at the Georgia Ports Authority Ocean Terminal in Savannah, Ga., in this photo from 2007.

The I-beam is just one item on a long list of construction and housing materials that could face a 25 per cent tariff should Canada retaliate against the U.S. President Donald Trump’s proposed tariffs on a variety of Canadian products.

Mélanie Joly says she’s sharing Canada’s counter-tariff tactics with European allies

Canada’s Foreign Affairs Minister Melanie Joly said Monday that Canada needs to send the message it will “fight back” after U.S. President Donald Trump said steep tariffs on Canadian and Mexican products are indeed coming next week.

Joly says Canada has been the only country to come up with ‘such a strong response of $155 billion worth of tariffs against the U.S.’ to counter the tariff threats posed by U.S. President Donald Trump. She says part of her visit overseas has been focused on sharing those tactics with European countries should they need to respond.

Speaking to reporters from London after meeting with British officials, Joly said Canada will hit back at the U.S. if Trump moves ahead with the tariffs.

She said the federal government crafted a plan to slap retaliatory tariffs on up to $155 billion worth of American goods when Trump launched the first salvo in this trade war, and Ottawa can bring that list back if he makes good on his threat.

“We need to stand strong and send a clear message that Canadians will fight back,” Joly said.

“The threat of tariffs is a real one and may continue for a while,” she said. “We need to be able to deal with the unpredictability of President Trump.”

Economists and experts have said tariffs that high have the potential to plunge the Canadian economy into a recession and lead to severe economic disruption for industries across the country.

The tariff will make some Canadian goods less competitive because American importers will have to pay the 25 per cent levy to bring them into the U.S. if Trump’s plan goes into effect.

Those added costs could then be passed on to American consumers, pushing up the price of everything from car parts and fertilizer to pharmaceuticals and paper products.

Trump has also threatened additional 25 per cent tariffs for certain industries, including steel, aluminum and auto imports.

The White House has previously said those tariffs — the steel and aluminum levies are set to take effect on March 12 — will be stacked on top of the 25 per cent tariff on Canada.

How do tariffs affect Canadians?

Historically, such tariffs have led to a decline in Canadian exports to the U.S. For instance, after the 2018 tariffs, Canadian steel exports to the U.S. decreased by 37.8 per cent in June 2018, and aluminum exports saw an average monthly decline of 18.6 per cent during the tariff period compared to 2017.

• Ask an expert: How will U.S. tariffs on steel and aluminum impact Canada’s economy?

How much does the US rely on Canada?

U.S. total goods trade with Canada were an estimated $762.1 billion in 2024. U.S. goods exports to Canada in 2024 were $349.4 billion, down 1.4 percent ($5.0 billion) from 2023. U.S. goods imports from Canada in 2024 totaled $412.7 billion, down 1.4 percent ($5.9 billion) from 2023. The U.S. goods trade deficit with Canada was $63.3 billion in 2024, a 1.4 percent decrease ($926.9 million) over 2023.

Are tariffs good or bad?

Tariffs can have unintended side effects: They can make domestic industries less efficient and innovative by reducing competition. They can hurt domestic consumers since a lack of competition tends to push up prices. They can generate tensions by favoring specific industries or geographic regions over others.

What does the 25% tariff mean for Canada?

The Canadian Chamber of Commerce’s Business Data Lab (BDL) has released alarming new figures on the economic fallout of the 25% tariff on U.S. imports proposed by President-elect Donald Trump.

Building on its recent Partners in Prosperity report, these new findings highlight the far-reaching consequences for both economies. In the scenario where other countries impose retaliatory tariffs on their imports from the United States:

• Canada’s GDP would shrink by 2.6% (or roughly CAD $78 billion), costing Canadians approximately $1,900 per person annually.
• U.S. GDP would shrinkby 1.6% (or roughly USD $467 billion), costing Americans approximately $1,300 per person annually.

A 25% tariff applied across-the-board on all U.S. imports could push Canada’s economy into recession by the middle of 2025. But these results also underscore Canada’s economic importance to the U.S. — something that’s often underappreciated south of the border. Make no mistake, if Trump imposed these tariffs, it would represent a significant negative shock to the U.S. economy. It would raise costs for businesses, make American production less competitive internationally, and raise prices even more for consumers who’ve recently suffered through the pandemic and the highest inflation in generations.

• Stephen Tapp, Chief Economist. Canadian Chamber of Commerce

To read the updated charts and analysis, click here.

Canada and the U.S. share one of the world’s most integrated trading relationships, with three-quarters of trade involving business inputs, rather than finished goods. The updated model results find that American tariffs would hit key industries like energy, autos, mining, and pharmaceuticals the hardest.

The Canadian Chamber also highlights areas that could draw U.S. scrutiny, such as Canada’s proposed digital services tax and notes that strategic planning is essential to protect Canada’s economy and interests.