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Canada relieved Trump doesn’t impose tariffs on the major US trading partner on first day

ROB GILLIES
January 20, 2025

TORONTO (AP) -- Canadian leaders expressed relief Monday that broad tariffs were not applied to Canadian products on the first day of Donald Trump's presidency and that he did not mention America's major trading partner during his inaugural speech.

Trump had threatened to impose sweeping tariffs on Canada, Mexico and other trading partners. An incoming White House official who insisted on anonymity pointed reporters to a Wall Street Journal story saying Trump will only sign a memorandum telling federal agencies to study trade issues.

Still, Trump pledged in his inaugural address that tariffs would be coming and said foreign countries would be paying the trade penalties, even though those taxes are currently paid by domestic importers and often passed along to consumers.

Finance Minister Dominic LeBlanc said reprieve is too strong of a word but said he felt good.

"If they decide to take a close look at the U.S. Canadian relationship when it comes to trade that's a very good thing," LeBlanc said at a Cabinet retreat in Montebello, Quebec. "Both countries are stronger and more secure when we respect and honor the comprehensive free trade agreement."

Trump said he would establish an external revenue service to collect all tariffs, duties and revenues and that it would lead to "massive amounts of money pouring into our country coming from foreign sources."

Foreign Minister Mélanie Joly said they are "very cautious" but they know they can make sure it is a win-win relationship.

Danielle Smith, the premier of Canada's oil-rich province of Alberta, said she was "pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further."

"We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers," Smith said in a post on X.

Smith said avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector. "Despite the promising news today, the threat of U.S. tariffs is still very real," she posted.

Canada's ambassador to Washington, Kristen Hillman, also said she was "pleased" and "cautiously optimistic."

"Nobody is giving us any assurances," Hillman told the Canadian Broadcasting Corporation. "We will feel better when I think we see the details of what he's asking for in terms of a study."

Hillman said she would return to Canada on Tuesday to brief the Cabinet.

Canada is one of the most trade-dependent countries in the world, and 75% of Canada's exports, which include automobiles and parts, go to the U.S.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.

Despite Trump's claim that the U.S doesn't need Canada, a quarter of the oil America consumes per day is from there.

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