Washington: Donald Trump announced on Friday that he may impose reciprocal tariffs on Canadian dairy and lumber within days. The move follows ongoing trade disputes and is expected to increase tensions between the two neighboring nations.
Trump accused Canada of “ripping off” the United States for years through unfair tariffs, stating:
“They’ll be met with the exact same tariff unless they drop it, and that’s what reciprocal means.”
Tariffs Could Be Imposed Soon
Trump suggested that the tariffs might be enforced as early as April 2, though he hinted they could take effect even sooner:
“We may do it as early as today, or we’ll wait till Monday or Tuesday.”
These tariffs come just days after a temporary exemption was granted to Canadian and Mexican imports under the United States-Mexico-Canada Agreement (USMCA).
Economic Concerns Over Tariffs
Economists warn that blanket tariffs could:
- Increase inflation in the US
- Slow down economic growth
- Affect business and consumer sentiment
Despite this, Trump maintained his firm stance, stating that Canadian policies have harmed US farmers and must be addressed.
Uncertainty Over Future Trade Policies
White House senior counselor Peter Navarro defended the administration’s approach, dismissing concerns about trade uncertainty. He stated:
“The uncertainty is created by the fact that people don’t take President Trump at his word.”
Meanwhile, Trump hinted that tariffs could increase over time, keeping businesses and investors on edge.
Impact of Existing Tariffs
Trump’s tariffs on imported goods—which range up to 25%—have already impacted financial markets. The White House recently made adjustments under USMCA to shield the automotive industry, but:
- 62% of Canadian imports remain subject to tariffs
- 50% of Mexican imports are also affected
With growing trade tensions and uncertainty, businesses and consumers in both countries remain watchful for further developments.
