Trump vows to match Canada’s retaliatory tariffs ‘immediately.’ Live trade war updates here.

U.S. President Donald Trump has unleashed tariffs against Canada today, setting in motion a trade war between two countries with deeply linked economies, jeopardizing jobs and likely raising consumer prices on both sides of the border.

Latest developments:

• The president’s executive order hit Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy
• The tariffs took effect at 12:01 a.m. EST.
• Prime Minister Justin Trudeau issued a warning to the global community, saying “if the American government is willing to do this to their own closest neighbour, ally and friend, everyone is vulnerable to a trade war.”
• Trump vowed to match any retaliatory tariffs Trudeau puts in place

3:49 p.m. EST: Saskatchewan premier: Canada’s response can’t cause undue harm to Canadians

Saskatchewan Premier Scott Moe vowed to cut down barriers on interprovincial trade and improve connections with markets outside the U.S. in a statement published Tuesday afternoon.

“Canada’s response needs to be economically sound and reasoned. It should not result in the same kind of self-inflicted harm that Trump is imposing on his citizens,” he wrote in the statement published on X, adding the tariffs will drive up the cost of oil, potash and uranium.

In 2024, Saskatchewan exported $5.8 billion in agri-food goods to the United States. Moe said his cabinet will meet tomorrow to “consider all options.”

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

3:40 p.m. Group wants new tax holiday for food

A restaurant industry group wants to see a new GST/PST tax holiday for food.

“That holiday created 34,000 extra jobs in our industry,” Restaurants Canada spokesperson Richard Alexander told CTV News Channel. “Now that we’re facing tariffs, we think it’s not the best policy for governments to be taxing food, no matter where it comes from.”

Tariffs and retaliation will lead to costs rising for restaurants, as well as customers, who may have less money to spend eating out. Approximately 1.2 million people work in Canadian restaurants, making them the fourth largest private-sector employer.

“We’re often the sector that is first impacted by any economic slowdown and are worried about our employees,” Alexander said.

Alexander spoke to CTV News from Washington D.C., where he attended a Congressional reception hosted by an American restaurant association.

“The trade negotiators that our organization works with, they tell us that the way to get this over fast is to force inflation in the States to go as high as possible and as quickly as possible,” Alexander said. “That will get elected representatives in the states hearing from their constituents and getting this ridiculous trade war to an end.”

Daniel Otis, CTVNews.ca journalist

3:30 p.m. EST: Trump ignites trade war based on ‘false information’

Trump posted this morning on social media: “Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?”

But U.S. banks have been operating in Canada for more than a century. The Canadian Bankers Association, an industry group, stated, “there are 16 U.S.-based bank subsidiaries and branches with around C$113 billion in assets currently operating in Canada,” and that “U.S. banks now make up approximately half of all foreign bank assets in Canada.”

Once again, the world is witnessing the wreckage hoisted on the global economy as the American president ignites a massive trade war based on false information.

Eric Ham, CTV News political analyst in Washington, former congressional staffer

2:55 p.m. EST: Relationship with ally has changed: Canadian Association of Petroleum Producers CEO

The president and CEO of the Canadian Association of Petroleum Producers says Canada’s relationship with a longtime ally and trading partner has fundamentally changed.

Lisa Baiton says without greater global reach for oil and gas exports, Canada has little trade leverage with the United States.

She says Canada urgently needs a policy overhaul that would allow infrastructure projects held back by environmental opposition to move ahead.

The Canadian Press

2:50 p.m. EST: Tariffs could halt auto manufacturing: association representative

Canadian Automobile Dealers Association representative Huw Williams says American automakers and dealers need to be speaking to the White House to emphasize how tariffs will interrupt the supply chain and bring North American vehicle production to a halt.

“There’s no doubt that these tariffs are bad for automotive consumers, they’re bad for the auto industry, bad for car dealers, and they’re bad for the economies on both sides of the border,” Williams told CTV News Channel.

“We’re hoping that reasonable heads prevail on this, particularly in the United States.”

Daniel Otis, CTVNews.ca journalist

2:35 p.m. EST: Canada could lose 1.5 million jobs in first 12 months of trade war

Canadian Labour Congress President Bea Bruske says Canada could lose 1.5 million jobs in the first 12 months of a trade war.“First and foremost, we need to make sure that workers are protected,” Bruske told CTV News Channel.

She also said that Canada needs to reduce its reliance on trade with the U.S. and invest in rails, ports and roads to get products and services to other markets.

“This is an economic war. We are being attacked,” Bruske said. “We have tried rational conversation for the last 30 days and yet we are still here. So this is a time for us as Canadians to sharpen our elbows.”

Daniel Otis, CTVNews.ca journalist

2:00 p.m. EST: Banks say interest rates could fall harder, faster with tariffs

Two of Canada’s largest banks say interest rates could fall faster and ultimately end up lower than previously predicted, as the consequences of a trade war with the U.S. are set to ripple through the Canadian economy.

“We now look for the quarter-point pace to continue in each of the next four meetings until July, taking the rate to two per cent,” wrote Douglas Porter, Bank of Montreal’s chief economist and managing director of economics, in a BMO Economics note published Tuesday.

“The net risk is that we eventually go even lower, if the (Bank of Canada) is comfortable with the prevailing inflation backdrop later this year.”

In a similar note from Royal Bank of Canada on Tuesday, the lender’s chief economist, Frances Donald, and its assistant chief economist, Cynthia Leach, said that the Bank of Canada has until now been “noncommittal” in how it would react if tariffs were implemented. “Without tariffs, we expected the BoC to gradually cut rates to 2.25 per cent.

“Now, we expect that the longer tariffs remain in play, the greater the likelihood that rates fall faster and by a larger magnitude,” they wrote.

The Bank of Canada is set to make its next policy decision on Wednesday, March 12.

Jordan Fleguel, BNN Bloomberg journalist

1:40 p.m. ET: Strategist says tariffs unlikely to last, but present risk to TSX

Tariffs present a significant downside risk to the S&P/TSX Composite Index if they remain in place, according to one strategist who thinks they are being used by U.S. President Trump as a negotiation tactic to get an updated version of the United States-Mexico-Canada Agreement (USMCA).

Ohsung Kwon, a U.S. and Canada equity strategist at BofA Securities, said in an interview with BNN Bloomberg Friday that absent tariff concerns, the overall macro cycle remains “pretty favourable for equities in general.”

“For the TSX, obviously the biggest risk is if the tariffs that got imposed today are permanent, and we estimate that if this is actually permanent, then it could essentially wipe out the entire EPS (earnings per share) growth that is expected for the TSX for this year, which is about 10 per cent,” he said.

“So that’s going to be very detrimental for the TSX. Not only the TSX, but if this becomes more of a global trade war, then it’s going to be very bad for the macro cycle and the equity markets in general. Our house view is that these are not permanent, especially on Canada and Mexico, and if that’s the case, I think we could potentially see (a) relief rally.”

Daniel Johnson, BNNBloomberg.ca journalist

1:28 p.m. EST: Trump’s tariffs ‘make no sense’: Joly

Foreign Affairs Minister Melanie Joly says the tariffs Trump imposed today “make no sense.”

“Jobs will be lost, and prices will go up – on both sides of the border,” Joly posted on X.

She reiterated Prime Minister Justin Trudeau’s response to the tariffs, adding that Canada remains “prepared to take additional measures.”

Lynn Chaya, CTVNews.ca digital breaking news assignment editor

1:25 p.m. EST: Singh on CNN: ‘It’s going to hurt’

NDP Leader Jagmeet Singh appeared on CNN this hour to plead Canada’s case in front of an American audience.

“Sadly, what Donald is doing is attacking you,” Singh said, appealing directly to American people. “This is not something we ever wanted, but we have to fight back.”

Asked about whether he supports Ontario Premier Doug Ford’s threat of cutting energy exports to the U.S., Singh said he does.

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

1:22 p.m. EST: British Columbia responds

The British Columbia government responded to the U.S. tariffs by joining other provinces in removing some booze from store shelves.

The province will immediately remove alcoholic products that are made in Republican-controlled jurisdictions.

“This is a deliberate decision to target red state liquor products,” Premier David Eby announced at press conference.

“We understand who’s attacking us. We understand where this is coming from, and we want to send a message, particularly to those governors, to those congresspeople, when they hear from their constituents about this, they have a chance to stand up to the president and to point out that jobs in their communities are dependent on a good relationship with Canada.”

The provincial government will also prioritize domestic producers in all areas of government procurement.

Adam Frisk, CTVNews.ca local producer

1:15 p.m. EST: Get rid of interprovincial trade barriers: Legault

Quebec Premier Francois Legault says he spoke with Ontario Premier Doug Ford about getting rid of interprovincial trade barriers in order to increase trade with the rest of Canada, he said in French during a press conference.

“Over the last six years, we’ve increased our trade within Canada by 34 per cent. But we need to do even more in both directions,” Legault said, adding that he and Ford “promised to work together in a concrete manner, sector by sector.

”In response to Trump’s tariffs, Legault said the U.S. president thinks Canada is “just going to throw up our arms,” but Trudeau earlier reiterated the province’s united stance in its counter-tariff response.

Lynn Chaya, CTVNews.ca digital breaking news assignment editor

1:10 p.m. EST: New Brunswick premier says Canada will not be bullied

New Brunswick Premier Susan Holt says her province has been preparing for Trump’s tariffs for months. “The president might not realize that we supply American defence with jet fuel,” Holt told CTV News on Tuesday.

“If you go to the base in Maine… those planes don’t get in the air without Canadian jet fuel.” New Brunswick is the most U.S. trade dependant province in Canada, with more than 90 per cent of its exports going to its southern neighbour.

Other exports include home heating oil, gasoline, wood, seafood and agricultural products – all of which will go up in price for American consumers. “We are not going to be bullied here in New Brunswick, nor in Canada,” Holt said.

“We are going to fight for our economy and our businesses and our workers.”

Sarah Plowman, CTV News journalist

1:07 p.m. EST: Markets in U.S., Canada down following tariffs

Markets in both Canada and the U.S. were trending downward Tuesday after Trump imposed tariffs on Canada and Mexico.

The S&P/TSX composite index was down more than 400 points Tuesday afternoon while the Dow Jones Industrial Average was down by more than 600 points.

The New York Stock Exchange index was also down nearly 300 points.

Daniel Otis, CTVNews.ca journalist

1:05 p.m. EST: Ford on Gretzky

Ford says his friend, hockey legend Wayne Gretzky, got “so choked up” talking to him the other day. “Give the guy a break, just give him a break. He loves Canada.”

He asked people not to boo the national anthem of either country during sports events, noting that it pays tribute to veterans.

Ford also said he’s spoken with Opposition Leader Marit Stiles, as well as Green Leader Mike Schreiner today about the tariffs.

He says he has 4,038 messages to return on his phone. He’s asking people not to text him in the middle of the night because he has to keep his phone on in case of emergencies.

Joshua Freeman, journalist, CP24.com

12:59 p.m. EST: Protest held at U.S. embassy in Ottawa

A number of demonstrators have lined the street in front of the U.S. Embassy in Ottawa on Tuesday to protest Trump’s tariffs and the U.S. president’s repeated talk about turning Canada into the 51st state.

Daniel Otis, CTVNews.ca journalist

12:56 p.m. EST: Trudeau speech showed ‘resolve and unity’: analyst

Sharan Kaur, political strategist at communications firm Sovereign Advisory and a former deputy chief of staff for former finance minister Bill Morneau, says Prime Minister Justin Trudeau delivered one of his best speeches earlier this morning.

Trudeau showed “resolve and unity,” Kaur said on CTV News Channel, adding that one of the things that stood out for her was Trudeau addressing the U.S. president as “Donald.”

Christl Dabu, CTVNews.ca national affairs writer

12:52 p.m. EST: Giant flag installed in front of Manitoba legislative building

Workers installed a giant Canadian flag on the front of the Manitoba legislative building Tuesday morning.

The flag towered over the historic building’s main entrance and is expected to serve as a backdrop for a statement by Premier Wab Kinew later in the day.

The Manitoba government says it is pulling U.S. alcohol from government liquor stores. The NDP government recently launched a “buy local” ad campaign.

The Canadian Press

12:50 p.m. EST: Trump promises to match Canada’s tariffs

Trump has vowed to match any retaliatory tariffs Canada puts in place “immediately.”

“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” wrote the president on his own social media platform, Truth Social.

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

12:48 p.m. EST: Poilievre on Trump’s remarks calling him ‘not MAGA’

Speaking in French, Poilievre reiterated that he is not pro-MAGA but Canada-first. “I don’t care about being liked by Mr. Trump or anyone else.”

Switching to English, Poilievre said, “I have one job to do and that is to fight for this country…. We will never be the 51st state. We will be self reliant, sovereign and stand on our own feet.”

Mary Nersessian, digital news director

12:44 p.m. EST: Ford won’t stop travelling to U.S.

Ford says U.S. jobs will be lost because of Trump’s “reckless” decision.

He says he’s very concerned about Ontario manufacturing jobs.

Ford says he won’t stop travelling to the U.S. and isn’t asking others to restrict their travel either. He says the biggest impact people can have is with their spending in Ontario, by choosing Canadian products.

Speaking about comments from Florida’s governor that Canadians will probably keep coming to Florida, despite the tensions, Ford says “what an attitude.”

Joshua Freeman, journalist, CP24.com

12:42 p.m. EST: Poilievre on Trump’s justification

“No, the Liberals have not done enough on fentanyl, but not because they should have been doing it for Trump but because they should have been doing it for Canadians,” Poilievre said.

Poilievre said he would add border guards, more surveillance and punish fentanyl dealers with life sentences

Mary Nersessian, digital news director

12:40 p.m. EST: Ford wants to ‘inflict as much pain’ as possible

Ford said he’s asked the Ontario Public Service to go through all contracts “with a fine tooth comb” to find other contracts the province can cancel.

“I want to inflict as much pain as I possibly can until we get to a deal of the USMCA,” said the Ontario premier. “He (Trump) says that we can’t withstand this. Well, he’s going to find out what we can and can’t withstand.

“Sure, it’s going to be tough. It’s going to be very tough, but I’ve never seen patriotism like I’ve seen running wild across the country.”

Joshua Freeman, journalist, CP24.com

12:39 p.m.: ‘You can’t unscramble the egg’ says Ford

“You can’t unscramble the egg, you have to make the omelette larger,” Ford says on the auto industry and the high level of integration across Canada, the U.S and Mexico.

“If they (the tariffs) go further into April, then we’ll cut off their electricity,” Ford said.

He says he doesn’t want to hurt Americans but needs to send a message to President Trump.

“When the market drops, that’s the people speaking,” Ford added, referring to tanked stock prices since this morning.

He called it “a shame” that one man has decided to plunge economies “into chaos” and reiterated that Trump needs to pay a price for his actions.

“He needs to pay the price in the midterms” Ford said. “If I’ve got to go down there and knock on doors myself, I will.”

Joshua Freeman, journalist, CP24.com

12:35 a.m. EST: Alta. Premier Smith calls Trump’s tariffs ‘disappointing’

Alberta Premier Danielle Smith, who has been the most reluctant of Canada’s premiers to directly criticize U.S. President Donald Trump, is calling his move to impose a 25 per cent tariff on Canadian goods and 10 per cent on Canadian energy “disappointing.”

“To see this escalation is so disappointing, so damaging, initially to American consumers and American businesses who buy Canadian goods and raw materials, but then now, with the counter-tariffs, it’s going to be also going to be harmful to Canadian consumers. No one wins a tariff war,” Smith said in an interview with CNBC on Tuesday.

Smith also echoed similar comments to Prime Minister Justin Trudeau, saying Canada will challenge the tariffs at the World Trade Organization and through the Canada-U.S.-Mexico Agreement.

“I don’t know why the president is behaving this way because it’s illegal,” Smith said. “We’re going to challenge it, and we would like to get back to negotiating some of the pressure points on that.”

Stephanie Ha, CTV News journalist

12:30 p.m. EST: Poilievre addresses Canadians

“You are afraid right now, and I understand. I want you to know, that I will fight for you. I will fight for your job, I will fight for your family,” Poilievre said.

Canadians were suffering even before the tariffs came in, he said, pointing to lineups at food banks, record inflation and Canada’s GDP.

“And now this. But I’m here with a message of hope. We will overcome this attack on our economy,” Poilievre said, saying we must retaliate on American goods, ones we can make ourselves, ones we don’t need, and ones we can get from elsewhere.

Mary Nersessian, digital news director

12:29 p.m. EST: Poilievre addresses Trump

“Canada will fight back…. We will put Canada first. There is no doubt that our economy will suffer, but so will yours, president Trump,” the Conservative Party leader said in a Tuesday afternoon statement.

Mary Nersessian, digital news director

12:27 p.m. EST: Ford wants to halt nickel exports

Ford says Ontario will be working with the federal government and speaking with Trudeau about halting nickel exports.

“If we have to stockpile it, if we have to ship it around the world, that’s what we’ll do,” Ford said.

Ford says he’ll encourage Saskatchewan Premier Scott Moe to sell the province’s uranium elsewhere in the world instead of to the U.S.

Joshua Freeman, journalist, CP24.com

12:25 p.m. EST: Products must be labelled Canadian or U.S.-made: Ford

Ford says products need to be clearly marked as Canadian-made or U.S.-made on store shelves. He says if stores don’t do it, he’ll legislate it.

“This is going to be a long battle and we have to keep our ammunition dry for the next round,” Ford says when asked about energy as a bargaining chip, noting that a second round of tariffs is set for April 2.

Ford also said he’s not sure how much it will cost to cancel the deal with U.S. billionaire and Trump confidant Elon Musk’s Starlink.

He says Musk “should be embarrassed” as someone who spent formative years in Canada and attended Queen’s University.

Ford thanked Sen. Mitch McConnell as being “one of the few senators who stood up to Donald Trump,” and urged others to follow suit because, he predicts, U.S. factories will start shutting down amid the trade war.

Joshua Freeman, journalist, CP24.com

12:22 p.m. EST: Mayor of most ‘tariff-exposed’ city reacts

The mayor of Canada’s most “tariff-exposed” city says it’s time for Canada to break up with the U.S.

Donna Reardon, mayor of Saint John, N.B., said in a way she’s glad the tariffs are now definitive so decisions can be made to move forward.

“It’s been this rollercoaster,” said Reardon. “Now we’re sort of to the point where we say we understand what’s going on. We know what we have to do. The country seems to be united with all of this. We have one common enemy, at the end of the day, that we’re trying to deal with.”

The Canadian Chamber of Commerce has ranked Saint John, N.B., as the country’s most “tariff-exposed” city.

The port city is home to the Irving Oil Refinery — Canada’s largest — which can process more than 320,000 barrels of crude each day and exports 80 per cent of its crude to the U.S.

Industries like seafood and forestry are also huge in Saint John, with much its product going to Maine.

Reardon calls Saint John an industrial workhorse for Canada and New Brunswick. She recognizes tariffs will bring pain but also sees them as an opportunity.

“What do they say? Necessity is the motherhood of invention. And so, for us, I think that Canada is there right now. We know we need to change. We know we need to move forward,” she said.

Sarah Plowman, CTV News journalist

12:20 p.m. EST: Ford elaborates

“We are watching the real-world impact of these tariffs and we will be there for you,” Ford says.

He says that will include training impacted workers for new jobs, retooling, and doubling down on infrastructure spending to bolster the economy.

Ford says the province will also diversify its trade partners, take down intra-provincial trade barriers and move forward on Ring of Fire mining development.

“The coming days and weeks will be hard. Businesses and families will feel the pain of this needless fight,” Ford says.

However, he says the province will protect businesses and people.

Ford says he’ll be sitting down with Prime Minister Trudeau and the other premiers later today to co-ordinate their efforts.

Joshua Freeman, journalist, CP24.com

12:15 p.m. EST: Ford on Ontario’s response

Ontario will slap a 25 per cent export tax on the electricity it supplies to three U.S. states if sweeping tariffs on Canadian goods “persist,” Premier Doug Ford says.

Ford made the comment during a news conference on Tuesday afternoon, noting that the export tax would apply to electricity that Ontario sends to 1.5 million homes and businesses in New York, Michigan and Minnesota.

It is not immediately clear when the tax would be put into effect.

“Today I am writing to every senator, every congressman and congresswoman and the governors from New York, Michigan and Minnesota telling them that if these tariffs persist and if the Trump administration follows through on any more tariffs we will immediately implement a 25 per cent surcharge on the electricity we export,” Ford said. “We will not hesitate to shut off their power as well.”

Chris Fox, CP24 managing digital producer

12:10 p.m. EST: Canada urged to be ‘very careful’ and ‘united’ in counter-response

Kory Teneycke, CEO of Rubicon Strategy, a public affairs and government relations firm, says the federal government has to be “very careful” about how it pursues counter-measures in response to the U.S. tariffs.

With any counter-measures, the burden should be shared, with the consent of provinces and territories, “otherwise we could see the country ripped in half,” he told CTV chief political correspondent Vassy Kapelos on CTV News Channel.

The only chance of “winning” the trade war is having a united Canada fighting together, he added.

Christl Dabu, CTVNews.ca national affairs writer

12:08 p.m. EST: ‘We have to respond’

Premier Doug Ford says “this is not the outcome anyone wanted.”

“Unfortunately one man, President Trump, has chosen chaos instead. Now, we have no choice. We have to respond,” Ford says.

Ford says the federal government has his “full support” for strong retaliatory tariffs.

Ontario will also start it’s first round of retaliation.

Starting today, the LCBO will start removing American products from its shelves. American businesses will also be banned from taking part in Ontario procurements.

Ford says Ontario is following through on a threat to rip up a contract with Elon Musk’s Starlink.

Joshua Freeman, journalist, CP24.com

12 p.m.: Trucking fleets reporting imminent layoffs

The Canadian Trucking Alliance says customers have been cancelling orders over the past few weeks, and many fleets surveyed in Ontario by the industry group reported recent or imminent layoffs.

Alliance president Stephen Laskowski says tariffs will have “shocking effects” on trucking companies and the broader supply chain.

The group says about 70 per cent of trade in goods between Canada and the U.S. moves by truck.

The Canadian Press

11:59 a.m. EST: How will Trump respond to Trudeau’s show of strength?

Prime Minister Trudeau, to use a sports analogy, is leaving it all on the field.

He spoke very truculently and taking a posture of confrontation rather than acquiescence as Ottawa stares down a punishing trade war from Washington. Trump certainly responds to “strength” over “weakness” – so will he back down, or continue as markets continue to slide?

Trudeau just said the quiet part out loud. Trump is applying maximum pressure on Canada in hopes that it forces America’s northern neighbour into U.S. statehood.

This is a narrative the American media has been loathe to explore with the White House, but now the PM is making it the focal point in the ongoing trade war.

It is now incumbent on the Trump administration to make clear its plans for what the endgame is now that the global economy is in a tailspin.

Eric Ham, CTV News political analyst in Washington, former congressional staffer

11:55 a.m. EST: ‘There will be a time of reckoning’ for Trump

CTV political analyst Tom Mulcair questioned Trump’s ability to gain the trust of many Americans.

The U.S. president is “great at fighting these imaginary battles,” Mulcair told CTV chief political correspondent Vassy Kapelos.

But he says his supporters will eventually find out that they’ll have to pay $1,500 more for a Ford-150.

“This is Donald Trump’s tax on everything,” Mulcair said about the tariffs. “There will be time of reckoning – it’s just going to take a while.”

Christl Dabu, CTVNews.ca national affairs writer

11:51 a.m. EST: U.S. Vice-President JD Vance: Canadians ‘not serious’ about fentanyl

Speaking to reporters in Washington, D.C., U.S. Vice-President JD Vance said fentanyl is the “underlying element” of the sweeping U.S. tariffs beings imposed, saying “Canadians have not been serious about stopping the drug trade.”

Despite the fact only one per cent of fentanyl intercepted at the U.S. border comes from Canada, Vance said that argument is “not a defence.”

“The Canadians have allowed a lot of fentanyl to come into the country. It’s not a defence to say more has come from Mexico because way too much has come from Mexico too,” he said.

Stephanie Ha, CTV News journalist

11:46 a.m. EST: Trudeau in his final remarks

“This is going to be tough. The American trade war is going to hurt the Canadian economy,” Trudeau said, adding that Ottawa will need to focus on making sure no one goes hungry.

Mary Nersessian, digital news director

11:41 a.m. EST: Greens say tariffs a ‘declaration of economic war.’

The federal Green Party said Trump’s imposition of tariffs on Canadian goods “is nothing short of a declaration of economic war.”

“No U.S. President has ever shown such contempt for our treaties and international law, not to mention the century-plus years of friendship and strong mutual support,” said Elizabeth May, Green Party co-leader said.

“Coupled with Trump’s oft-repeated nonsense that he wants to annex Canada and use economic damage to coerce us, it is clear that this is no ordinary trade dispute.”“Donald Trump’s tariffs are a direct attack on Canada,” Jonathan Pedneault, co-leader of the Green Party of Canada added in the statement on Tuesday.

“They are intended to undermine our economy, create insecurity, and are a direct challenge to our independence. Canada will remain firm and united in the face of economic bullying.”

Mary Nersessian, digital news director

11:39 a.m. EST: Trump is ‘isolating’ his own country

Wesley Clark, a former NATO supreme allied commander, says he’s concerned with Trump’s tariffs and their effect on the global stage.

He told CNN that when he served as commander at the turn of the century, “I couldn’t have gotten any stronger support” from Canada.

“Here we are isolating Canada,” he said, and in turn, “isolating the United States.”

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

11:34 a.m. EST: Trudeau on non-tariff measures

Asked what he is contemplating in terms of non-tariff measures, the prime minister said he will be sitting down with the premiers this afternoon to talk about their individual and collective responses.

“There are many different things that we’ve been looking at and that conversation with the premiers this afternoon will be very, very important.”

Mary Nersessian, digital news director

11:35 a.m. EST: Trudeau on allies

“Every country is very, very aware that if the American government is willing to do this to their own closest neighbour, ally and friend, everyone is vulnerable to a trade war.”

11:30 a.m. EST: Trudeau on annexation

Trudeau said he heard that Trump spoke about banking again “which doesn’t make any sense,” because there are more than a dozen American banks “alive and well and prospering in Canada.”

“Even the excuse he is giving for these tariffs today,” Trudeau said, which is fentanyl, “is completely bogus.”What Trump wants to see, Trudeau said, is the complete collapse of the Canadian economy, which will make it easier to annex Canada.

“But he is going to rapidly find out … that it’s going to hurt people on both sides of the border.”

Mary Nersessian, digital news director

11:27 a.m. EST: Trudeau on adjusting EI

“There will be similar impacts on Americans losing their jobs, American families paying more for basic goods they rely on,” Trudeau said, adding that Canada’s focus needs to be on getting these tariffs lifted as soon as possible. Trudeau added that he is looking at adjusting EI to help Canadians through this time.

Mary Nersessian, digital news director

11:24 a.m. EST: Trudeau on Putin

There is no question that Putin is an opponent of Canada, Trudeau said in response to a question on Russia.

“What do the American people think? How do Americans feel about jettisoning one’s friends and allies in favour of a country that has never wished Americans well and continues to act in ways that harm the global economy and specifically the American economy and American values and principles.”

Mary Nersessian, digital news director

11:22 a.m. EST: Is the conflict about fentanyl?

Asked whether he really thinks the conflict is about fentanyl, the prime minister responded saying that in terms of taking action on fentanyl, Ottawa is doing everything necessary not just for the U.S. but for Canada, too.

Even though it is the legal justification Trump must use to move forward on the tariffs, Trudeau said he did not believe it to be the main reason for the action.

Mary Nersessian, digital news director

11:21 a.m. EST: ‘Defending our great nation’

“We’ve been in tough spots before ... but we have not only survived, we have emerged stronger than ever, because when it come to defending our great nation, there is no price we all aren’t willing to pay, and today is no different,” Trudeau said, before opening the floor to reporters' questions.

Mary Nersessian, digital news director

11:19 a.m. EST: Trudeau applauds Canadians' U.S. boycott

Speaking in French, Trudeau said Canada has made more efforts over the past week to increase collaboration with Mexico, which has also been hard-hit by the tariffs.

The prime minister added that he has seen Canadians unite, cancelling travel plans, and supporting local businesses.

Mary Nersessian, digital news director

11:17 a.m. EST: This is a very ‘dumb’ thing to do: Trudeau to Trump

“Donald, in the over eight years you and I have worked together, we’ve done big things. We signed a historic deal that has created record jobs and growth in both of our countries. We’ve done big things together on the world stage,” Trudeau said, speaking directly to the U.S. president. “And now, we should be working together to ensure even greater prosperity.”

Even though you’re a very “smart” guy, Trudeau said, to his American counterpart. This is a very “dumb” thing to do, he said.

Mary Nersessian, digital news director

11:08 a.m. EST: Prime Minister Justin Trudeau speaks

Prime Minister Justin Trudeau says Canada will “not back down” from its trade war with the United States, as President Donald Trump follows through on Tuesday on his threat to impose punishing tariffs on Canadian imports, after his 30-day reprieve on the measure expired.

“Today, the United States launched a trade war against Canada, their closest partner and ally, their closest friend,” Trudeau told reporters on Parliament Hill on Tuesday. “At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”

“Canadians are reasonable and we are polite, but we will not back down from a fight,” he said. “Our tariffs will remain in place until the U.S. tariffs are withdrawn and not a moment sooner.”

“I want to speak first directly to the American people, we don’t want this. We want to work with you, as a friend and ally. And we don’t want to see you hurt, either. But your government has chosen to do this to you.”

Mary Nersessian, digital news director

11:04 a.m. EST: Ford to tariff electricity, WSJ reports

Ontario Premier Doug Ford tells The Wall Street Journal that the province will slap a 25 per cent export tax on the electricity it provides to 1.5 million homes and businesses in New York, Michigan and Minnesota.

Ford also told the newspaper that he will direct energy producers in Ontario to stop exports to the U.S. entirely if President Donald Trump follows through on a threat of implementing more tariffs as of April 2.

Chris Fox, CP24 managing digital producer

11:01 EST: Tariffs rattle markets, spark ‘economic warfare’

Lisa Raitt, former deputy Conservative leader, says the markets have priced in the tariffs but not the “economic warfare” that will result from them.

While the sharp drop in the markets hasn’t yet changed U.S. President Donald Trump’s mind about ending the levies, Raitt pointed to the apparent effect of his tariff policy on the world’s largest semiconductor manufacturer.

Taiwan Semiconductor Manufacturing Company announced Monday that it is investing at least US$100 billion to build plants in the U.S., CNN reported.

Christl Dabu, CTVNews.ca national affairs writer

10:46 a.m. EST: Ex-Canadian ambassador tries to reassure Canadians

Frank McKenna, former Canadian ambassador to the U.S., says America has made itself “a rogue nation” by starting the tariff war.

“It’s a day they’ve walked away from their contractual obligations,” McKenna told Vassy Kapelos on CTV News Channel.

McKenna tried to reassure Canadians, saying they should feel some optimism that the U.S. picked the “wrong person” and the “wrong fight.”

Christl Dabu, CTVNews.ca national affairs writer

10:40 a.m. EST: Newfoundland and Labrador pulling U.S. alcohol

Newfoundland and Labrador’s government is also pulling U.S. alcohol from provincial liquor stores in response to the tariffs.

“Now, more than ever, we should be supporting local and Canadian-made products where possible,” Premier Andrew Furey said in a press release.

“We will be removing U.S. products from Newfoundland and Labrador Liquor Corporation shelves, and reviewing and stopping immediately, where possible, procurement from the U.S.”

Newfoundland and Labrador join other provinces, including Ontario and Nova Scotia, in pulling U.S. booze from provincially run liquor stores.

Adam Frisk, CTVNews.ca local producer

10:35 a.m. EST: Singh makes ‘urgent’ call for emergency session

NDP Leader Jagmeet Singh has issued an “urgent” letter asking for an emergency session in Parliament to address tariffs.

Canada’s Parliament has been prorogued since Prime Minister Justin Trudeau announced he was stepping down as leader in early January, halting work in the House.

He demanded the government put a “comprehensive package” together to support affected workers, which would include “emergency support,” investment in “good, union jobs,” and “unanimous support for retaliatory tariffs.”

“I understand that we are all preparing for an election to be called soon. But these steps need to be taken immediately, prior to an election,” Singh wrote in the letter, referring to the snap election expected to be called after the House resumes on March 24.

“We are leaving Canadians vulnerable to the impacts of tariffs to suffer for months as an election is held and a new government is chosen.”

When Finance Minister Dominic LeBlanc appeared for an interview on CTV Question Period last month, host Vassy Kapelos asked whether Parliament needs to be in session to move ahead with tariff related supports.

LeBlanc insisted that “the government has the instruments necessary to support workers and Canadian businesses in the current context.”

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

10:25 EST: Want to ditch tariffs? ‘MOVE TO THE UNITED STATES’: Trump

U.S. President Donald Trump has offered a solution to end the tariff war.“IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NO TARIFFS!!!” Trump posted on Truth Social at 10:13 a.m. EST.

Christl Dabu, CTVNews.ca national affairs writer

10:17 EST: Canada needs to be ‘resilient, resolved but tough’

CTV News political analyst Scott Reid tells Vassy Kapelos on CTV News Channel that even as Donald Trump’s actions, including sparking the tariff war, anger many people, Canada’s leaders need to have a “temperate tone” when dealing with the U.S. president.

Canadian leaders need to be “resilient, resolved but tough” in order to have a constructive relationship with the U.S., he added.

Christl Dabu, CTVNews.ca national affairs writer

10:15 EST: Lutnick pushes for return of car manufacturing to U.S.

U.S. Commerce Secretary Howard Lutnick justified the U.S. tariffs in an interview with CNBC. He said vehicles manufactured under the United States-Mexico-Canada Agreement, which replaced NAFTA, means less than 10 per cent of parts are being produced in the United States.

“We’ve got to bring the stuff to America,” he said. “It’s got to be produced in America.”

Christl Dabu, CTVNews.ca national affairs writer

10:12 a.m. EST: Quebec to announce tariff response

Quebec Premier Francois Legault is holding a special meeting of his cabinet this morning before he announces his province’s response to the start to the trade war with the United States.

Legault has said his government will launch a fund to give short-term financing to Quebec companies vulnerable to the tariffs that U.S. President Donald Trump imposed on Canadian goods today.

The premier has also called on companies looking to expand to apply for funding with the province’s investment arm -- Investissement Quebec.

A recent study by the Canadian Chamber of Commerce says the Quebec cities most at risk from tariffs are Saguenay, Trois-Rivieres and Drummondville.

Legault is scheduled to announce his government’s response to U.S. tariffs at 1 p.m. in Montreal.

The Canadian Press

10:09 a.m. EST: Canadian recession possible, economists say

Economists say the Canadian economy is poised to plunge into a recession this year if U.S. tariffs that took effect Tuesday morning remain in place.

RSM Canada economist Tu Nguyen says Canada’s economic landscape “is set to change dramatically,” as the trade war will mean prices increase, unemployment rises, and consumers begin pulling back. She says that while the manufacturing, energy, and food sectors would be immediately hit, no sector will be spared and businesses will need to cut jobs.

Capital Economics' Stephen Brown says financial markets are likely still pricing in a “quick U-turn” from the Trump administration based on the loonie’s limited decline, but the “best-case scenario” now is a sustained period of weaker GDP growth than previously expected.

The Canadian Press

10:04 a.m. EST: Ont. premier: I apologize to the American people

Ontario Premier Doug Ford says Trump’s tariffs will have devastating impacts on the U.S. auto manufacturing sector, suggesting that assembly lines could “shut down” in the United States within a week.

Ford made the comments during an interview with CNN on Tuesday morning.

“We are going to continue seeing, in the U.S., plants close, assembly lines shut down. In the auto sector, they may last five maybe eights days,” the premier said.

“This is unnecessary and we do have to retaliate and I apologize to the American people. It is not you. It is your president that is causing this problem.”

Codi Wilson, CP24.com journalist

10:01 a.m. EST: LCBO pulling U.S. alcohol products from stores

The LCBO’s website is temporarily down as the alcohol distributer removes all American alcohol products in response to U.S. President Donald Trump’s sweeping tariffs on Canadian goods.

“At the direction of Premier (Doug Ford), U.S. products are being removed from LCBO shelves,” Ivana Yelich, spokesperson for the premier, said in a post on X on Tuesday morning.

Alex Arsenych, CTVNewsToronto.ca journalist

9:56 a.m. EST: Trump claims U.S. banks barred from Canada

Trump has again aired one of his grievances against Canada on his social media platform, Truth Social.

“Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?” he wrote.

It’s a claim the president has made before, and one that the banking community in Canada has refuted.

In February, the association representing bankers in Canada said U.S. subsidiaries and branches represent half of all foreign bank assets in the country, despite Trump’s claims.

“There are 16 U.S. based bank subsidiaries and branches with around C$113 billion in assets currently operating in Canada,” the Canadian Bankers Association said in a statement at the time.

“These banks specialize in a range of financial services, including corporate and commercial lending, treasury services, credit card products, investment banking and mortgage financing. They serve not only customers with cross-border business activities, but also Canada’s domestic retail market.”

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

9:51 a.m. EST: How will Trump sell this?

There’s a massive sell-off occurring on Wall Street in reaction to the tariffs. Companies, pensions, 401Ks are losing billions. It will be really interesting to see how Trump sells this tonight before a national audience during his first major address to Congress and the nation.

Eric Ham, CTV News political analyst in Washington, former congressional staffer

9:41 a.m. EST: Unifor says counter-tariffs not enough

Unifor National President Lana Payne tells Vassy Kapelos that counter-tariffs aren’t enough -- Canada needs to respond with non-tariff retaliatory measures as well.

For the auto industry, she says the tariffs are a setback as the industry needs investment. If production is shifted to the U.S., corporations “are going to have a massive fight” in their hands, she said on CTV News Channel.

Christl Dabu, CTVNews.ca national affairs writer

9:35 a.m. EST: Stock markets fall as Trump tariffs take effect

North American markets dropped at Tuesday’s open after sweeping tariffs on Canada, Mexico and China were imposed by U.S. President Donald Trump’s administration at 12:01 a.m. EST.

The S&P 500 Index was down nearly one per cent in New York as of 9:30 a.m. EST, while in Toronto, the S&P/TSX Composite Index fell by more than 1.5 per cent.

Jordan Fleguel, BNN Bloomberg journalist

9:20 a.m. EST: Tariffs to trigger ‘moderate recession,’ BMO predicts

Bank of Montreal said in a note Tuesday that U.S. tariffs will likely lead to several quarters of economic contraction, amounting to a “mild recession.”

The bank said inflation is also likely to spike in Canada in the short term due to tariffs, before fading gradually as the economy weakens.

BNN Bloomberg anchor Amanda Lang also said there are concerns about a possible U.S. recession, which will also dampen the global outlook, as part of the fallout from the tariffs.

Jordan Fleguel, BNN Bloomberg journalist and Christl Dabu, CTVNews.ca national affairs writer

9:10 a.m. EST: ‘It’s a war. Nobody will win’

Urban Machinery produces machines that make windows and exports 60 per cent of its machines to the United States.

Harald Kopp, the production manager at its Fredericton factory, said the company has more than 700 customers in the U.S. but in recent weeks, business has slowed. Orders have been down due to tariff uncertainty.

Kopp said workers are nervous, despite being told by the company that they are secure and that everybody will have work. Like a giant puzzle, the machines are made up of thousands of parts from all over the world—including the U.S.

U.S. Tariffs and a Canadian counterpunch will hit the company with a double dose of tariffs.

“It’s a war. Nobody will win,” said Kopp. “A war is not a solution at all. A bullet from the left side, a bullet from the right side. Who is losing? The people on the ground. They are losing. And the same as with the businesses.”

Sarah Plowman, CTV News journalist

8:58 a.m.: Trudeau to speak later this morning

Prime Minister Justin Trudeau will hold a press conference at 10:30 a.m. EST today, where he will be joined by Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly, and Public Safety Minister David J. McGuinty.

Yesterday, Joly described the tariffs as an “existential threat,” telling reporters that Canada was ready.

Mary Nersessian, digital news director

8:50 a.m. EST: Mexico reaction to tariffs

Mexican President Claudia Sheinbaum condemned the U.S. tariffs and said there was no justification for them. She said her government would respond with both tariff and non-tariff measures.

Reuters

8:45 a.m. EST: Labour union laments ‘all-out attack’

The United Steelworkers union called the tariffs an “all-out attack on Canadian workers, their families and the industries that keep our economy running,” said Marty Warren, the national director for Canada, in a press release.

Desjardins estimated industries involving primary metals and machinery are among the most vulnerable to Trump’s tariffs.

“This reckless decision threatens jobs, risks devastating the Canadian communities that rely on them and will disrupt the supply chains on which North America depends,” Warren wrote.

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

8:35 a.m. EST: Ford to respond

Ontario Premier Doug Ford is expected to respond to U.S. President Donald Trump’s tariffs at a news conference in Toronto at 11:30 a.m. EST.

Ford said Monday that the province will consider halting the supply of nickel and electricity to the United States in response to the tariffs.

“We will respond strongly and we don’t want to,” Ford said. “On the critical minerals I will stop shipments going into the U.S. for nickel. I will shut down manufacturing because 50 per cent of the nickel you use is coming from Ontario.”

The Ontario premier also said he would move forward on a number of previously announced actions, including removing U.S. alcohol from LCBO shelves and ripping up a $100-million deal with Elon Musk’s Starlink for satellite internet service in northern Ontario.

Codi Wilson, CP24.com journalist

8:18 a.m.: EST: Poilievre to speak

Conservative Party Leader Pierre Poilievre is expected to hold a press conference today at 11:30 a.m. EST in the foyer of the West Block in Ottawa, the party said in a statement on Monday morning, without specifying any other details.

Mary Nersessian, digital news director

8:15 a.m. EST: Toronto ‘united’ against Trump’s tariffs

Toronto Mayor Olivia Chow said Trump’s tariffs have worried “hardworking Torontonians,” vowing in a post on X that her city will stand “united in a Team Canada approach to respond to this senseless trade action.”

“We will get through this together,” she wrote.

Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

7:45 a.m. EST: ‘A short-sighted man’

Nova Scotia Premier Tim Houston responded to the tariffs on social media, calling Trump “a short-sighted man who wields his power just for the sake of it, not having any consideration for the destructive impact of his decisions on both Canadians and Americans.”

“It is impossible to properly describe the uncertainty and chaos that President Trump’s threat of tariffs and now actually imposing tariffs has caused for Canadians,” Houston said in a lengthy post to X.

Along with removing alcohol from Nova Scotia Liquor Corp. store shelves, Houston said the province will immediately limit access to provincial procurement for U.S. businesses, look at cancelling existing contracts and “reject outright bids” until the tariffs are removed.

Michael Lee, CTVNews.ca lead morning producer

7:38 a.m. EST: World market decline

European and Asian shares were mostly lower Tuesday after a new round of tariffs imposed by U.S. President Donald Trump took effect.

Get the latest market developments and real-time data on BNNBloomberg.ca

6:31 a.m. EST: Unifor responds

Unifor national president Lana Payne says U.S. President Donald Trump has seriously misjudged the resolve and unity of Canadians, and he has misjudged how damaging this trade war will be for American workers.

The head of the union, which represents 320,000 workers, says the tariffs will hurt working people with higher prices for everyday goods, destroy jobs on both sides of the border.

Unifor is calling on all levels of government and industry to step up and co-ordinate a response to the continued tariff threats on targeted Canadian industries.

Payne says Canada’s trade relationship has forever changed with the U.S.

The Canadian Press

6 a.m. EST: Business leaders surveyed

A survey by KPMG finds two-thirds of Canadian business leaders polled say they can weather a trade war that lasts more than a year.

The report also says that 86 per cent support retaliatory tariffs against the United States.

Timothy Prince, the Canadian managing partner for clients and markets at KPMG in Canada, says the business community remains unwavering in its commitment to stand up for Canada.

The report is based on a survey completed last week of 602 business leaders from primarily mid-sized and large companies across Canada and industry sectors.

The Canadian Press

6 a.m. EST: Canada to retaliate

Prime Minister Justin Trudeau says Canada is prepared for a trade war with its southern neighbour as U.S. President Donald Trump’s 25 per cent tariffs on Canadian goods took effect Tuesday at midnight. Justin Trudeau is set to speak today at 10:30 a.m. EST. You can watch it live here on CTVNews.ca and the CTV News App.

Spencer Van Dyk and Stephanie Ha, CTV News

6 a.m. EST: Why are titans of industry holding their tongues amid punishing Trump tariffs?

Despite conservatives' long-held affinity for so-called “job creators,” Trump 2.0 is changing the narrative with market-altering tariffs crashing down on America’s biggest allies. Meanwhile, the monied class and oligarchy remain eerily silent as their businesses, consumers, and precious stock prices brace for certain impact. More from CTVNews.ca opinion writer Eric Ham here.

Eric Ham, CTVNews.ca

Monday: Doug Ford threatens to stop nickel shipments to U.S. on eve of trade war

Premier Doug Ford is threatening to stop the supply of nickel and electricity to the United States in response to 25 per cent tariffs on Canadian goods.

“We keep the lights on for 1.5 million homes and manufacturing (businesses) in New York, in Michigan and in Minnesota. If he (Trump) wants to destroy our economy and our families, I will shut down the electricity going down to the U.S. I am telling you we will do it,” Ford said.

Chris Fox, CP24.com

Monday: Trump says economywide tariffs to hit Canada Tuesday

U.S. President Donald Trump says 25 per cent across-the-board tariffs on imports from Canada and Mexico, with a lower 10 per cent levy on Canadian energy, will start Tuesday

Trump says there’s no room left for America’s closest neighbours to negotiate a way out of the devastating duties.

The president says both countries would have to build car plants and “other things” in the United States to get the levies removed.

Trump’s executive order to implement economywide tariffs was delayed until Tuesday after Canada and Mexico agreed to introduce new security measures at the border.The order initially tied the tariffs to the illegal flow of people and drugs across the borders — but Trump previously said the delay would allow time for an “economic” deal.It remains unclear what the president wants to see from Canada in exchange for dropping the tariff threat for good.

The Canadian Press

Sunday: Canada has done a ‘reasonable’ job on the border

U.S. Commerce Secretary Howard Lutnick said tariffs would be levied Tuesday against Canada and Mexico, but the levels remained to be seen.

“Exactly what they are, we’re going to leave that for the president and his team to negotiate,” Lutnick said in an interview broadcast Sunday on Fox News.

Trump’s executive order to implement 25 per cent tariffs on all Canadian products, with a lower 10 per cent levy on energy, was delayed until Tuesday after Canada agreed to introduce new security measures at the border.

Despite the boost in border security and a weeks-long diplomatic push by Canadian officials in Washington, Trump said last Thursday the steep duties would move forward.

Lutnick said Mexico and Canada had done a “reasonable” job on the border but the billionaire financier said fentanyl continues to enter the United States. He said Trump is still considering “how exactly he wants to play it” with America’s closest neighbours, describing it as a fluid situation.

U.S. Customs and Border Patrol data shows the number of people and drugs crossing illegally into the United States from Canada is minuscule compared to the volume coming across the southern border. It reports just 13.6 grams of fentanyl seized by northern Border Patrol staff in January.

Kelly Geraldine Malone, The Canadian Press

Saturday: Report reveals which Canadian companies are most at risk

A new report outlines the top 10 Canadian companies facing downside risks if U.S. tariffs are enacted, with nearly half of the firms on the list operating in the energy sector.

The report, authored by Syntax Data, comes amid fresh tariff threats from the U.S. On Monday, U.S. President Donald Trump said that tariffs on Canada are “going forward on time,” with an executive order that was delayed until March 4 to implement a 25 per cent tariff on all Canadian imports with a lower 10 per cent levy on energy. On Wednesday, a White House official confirmed the tariff plans could change as a result of negotiations.

The report said tariffs could impact Canadian industries that rely on the U.S. for trade, along with raising costs for Canadian exporters and potentially disrupting supply chains. As a result, Syntax Data said in the report that it screened for Canadian firms with the largest U.S. revenues and “therefore highest exposure to U.S.-imposed tariffs.”

“The energy sector is at risk given how much business Canadian energy producers do with the U.S. Forty percent of the top 10 companies identified are in energy production, including Enbridge Inc. and TC Energy, which each generate approximately 50 per cent of their revenue in the U.S.,” the report reads.

“With 60 per cent of U.S. crude oil being imported from Canada, a 10 per cent tariff on energy could have major implications for the energy industry. While lower tariffs are likely designed to avoid extreme energy price hikes for U.S. consumers, Canadian energy companies with significant U.S. exposure would face major ramifications.”

Daniel Johnson, BNNBloomberg.ca

Background

• What is an import tariff? An import tariff is a tax placed on a good as it’s brought into the country, paid for by the importer. Trump has said he plans to hit Canada and Mexico with a 25 per cent tariff on most imports — energy would be taxed at 10 per cent. However, those tariffs may be delayed, as they were earlier this month, or dropped. 

READ MORE: What exactly is a tariff?

• Why is this happening? Trump has cited several reasons for his tariff threats. He said Canada needs to do more to prevent fentanyl smuggling. He claims his country carries a trade deficit of between $100 to $200 billion, but that number appears to be inflated. U.S. data lists the 2023 deficit at $40.6 billion. He also said he’s open to using economic force to make Canada the 51st state.
• How will Canada respond?  In early February, Canada said it would slap retaliatory 25 per cent tariffs on $155 billion worth of American goods. Thirty-billion dollars of those tariffs would be immediate, while fees on an additional $125 billion would come later, providing time for Canadian companies and supply chains to find alternatives.

Understanding tariffs

A tariff is a tax on imported or exported goods. For companies importing products into the U.S., they will be required to pay a tax on those products.

Conversely, if Canada were to apply tariffs on goods imported into Canada, Canadian businesses that import from the U.S. would pay a tax on those imports, likely making products from the U.S. more expensive for Canadian consumers.

Why do governments use tariffs?

There are several reasons governments may put tariffs in place according to EDC, but generally tariffs accomplish three things.

1) Governments use them to generate revenue similar to an income or sales tax where the money can be used in a nation’s treasury and rolled into its budget;

2) Tariffs can be used to protect domestic industries, if a country decides free trade from an outside nation is hurting domestic producers;

3) Tariffs could be used as a diplomatic tool, to limit or ban imports or exports on goods and services from another country in an attempt to influence behaviour.