Trump Plans to Fast-Track Reciprocal Tariffs on Canada
President Trump announced that he would impose reciprocal tariffs on Canada as early as next week, moving up the timeline from the previously stated April 2 start date.
Speaking from the Oval Office on Friday, Mr. Trump reiterated his commitment to using tariffs as a tool to address trade imbalances, particularly with Canada. He criticized the country for imposing high tariffs on U.S. products, including lumber and dairy.
“They will be met with the exact same tariff, unless they drop it,” Mr. Trump said.
The president indicated that his reciprocal tariff policy would extend beyond Canada to include goods from several other nations.
Concerns Over Canadian Trade Practices
Mr. Trump has expressed particular frustration with Canadian trade policies, which he views as unfair to American industries. Canada imposes substantial tariffs on U.S. dairy products exceeding import limits, with levies reaching over 250% on items like milk, cheese, and butter.
The U.S. has also accused Canada of subsidizing its lumber industry and selling products at lower prices in the American market while restricting U.S. lumber exports.
Canadian officials, however, argue that the trade imbalance—which amounted to $63 billion last year—is largely due to Canada’s significant oil exports to the United States.
Despite accelerating his tariff timeline, Mr. Trump confirmed that the broader plan for reciprocal tariffs on other countries remains set for April 2. He told reporters, “The U.S. has been absolutely ripped off by almost every country in the world” when it comes to trade.
Broader Tariff Policy and Global Implications
The president also criticized India’s trade practices, claiming the country imposes “massive tariffs” on U.S. goods. However, Mr. Trump suggested that India is now considering reducing its tariffs in response to his new trade measures.
He argued that reciprocal tariffs would help restore American manufacturing jobs lost after the 1994 North American Free Trade Agreement (NAFTA). According to Mr. Trump, 90,000 U.S. factories have shut down since NAFTA’s implementation.
“We’re not going to have that,” Mr. Trump said, highlighting the creation of 10,000 U.S. manufacturing jobs in February and taking credit for the increase. “That hasn’t happened in a long time,” he added.
Mr. Trump’s tariff strategy has evolved over the past week.
While he initially imposed 25% tariffs on Canada and Mexico, he later granted exemptions for auto manufacturers and other goods covered under the United States-Mexico-Canada Agreement (USMCA) from his first term.
In addition to targeting Canada and India, Mr. Trump also warned of potential tariffs on Russia. He made the threat in response to Russia’s ongoing missile strikes against Ukraine, despite his administration’s attempts to broker a peace agreement.
