Trade War Update - February 3
The threat has turned into reality. On Saturday, President Trump declared a trade war against Canada, imposing a 25 per cent tariff on virtually all goods from Canada and a 10 per cent tariff on Canadian energy products.
President Trump has just violated our free trade agreement and a deep strategic relationship. He is doing so under the guise of fentanyl and illegals entering the United States via our shared border.
Canada is responsible for less than 1 percent of fentanyl and illegals entering the United States. We’ve also implemented a robust $1.3 billion plan to strengthen our border and are already seeing results. This is not about fentanyl. This is not about our border. This is about our sovereignty and President Trump's desire for Canada to become the 51st state. This is not going to happen.
Having heard from many of you over the weekend, one thing is clear: we’re not in the mood to make any concessions. Canada won’t back down in the face of senseless and unjustified trade policy. And we’re not backing down to a bully.
We’re responding with targeted measures that will most affect Americans and least affect Canadians: 25 per cent tariffs on $155 billion worth of American goods. This will come in two phases:
First, we’ll impose immediate tariffs on $30 billion worth of U.S goods as of tomorrow (Tuesday).
For Canadian businesses with no other alternatives to their current purchase arrangements with US suppliers, please know that our government is outlining a framework and process for how it will consider remission requests for the tariffs on products from the United States that apply beginning tomorrow, February 4, 2025. Please see this website for details.
Second, to allow Canadian companies and supply chains to respond, we will impose additional tariffs on $125 billion of American goods in 19 days time.
As I said in my update on Friday, these are tough times. We need to stand strong as a community and come together as a nation. It’s a time to be united, focus on the economy, and for each of us to do our part in this fight.
Today, I’m asking you to choose Canada. Buy Canadian, support Canadian businesses, Canadian farmers and Canadian producers. Fly the maple leaf high, and wear your red and white proudly.
In the coming days and weeks you can expect to hear from me regularly with updates. In the meantime, I’d love to hear from you. If you haven't already reached out, please don’t hesitate to email me. Your input is important to me and helps me do this work on your behalf.
Proudly Canadian,
Jenna
Helpful links:
If you have not done so yet, I’d encourage you all to read or watch the Prime Minister’s remarks in response to Trump’s tariffs.
Government of Canada announces next steps in its response plan to unjustified U.S. tariffs (from the Department of Finance Canada)
Canada announces $155B tariff package in response to unjustified U.S. tariffs (from the Department of Finance Canada)
List of products from the United States subject to 25 per cent tariffs effective February 4, 2025 (from the Department of Finance Canada)
Government of Canada announces its plan to strengthen border security and our immigration system (from Public Safety Canada)
