Trump and Trudeau discussed lifting some tariffs in ‘heated’ call: source

Canada and the U.S. are now in a trade war. Yesterday, one minute after midnight, U.S. President Donald Trump’s sweeping 25 per cent tariffs against Canada went into force. Energy products are tariffed at 10 per cent. Canada, in response, announced retaliation, which Trump then promised to match.

Here is everything that happened on Wednesday, March 5, 2025.

8:20 p.m. EST: Ontario family cancels U.S. travel plans

Some Canadians are rethinking their U.S. travel plans after controversy surrounding U.S. tariffs and President Donald Trump.

Amy Gleiser had planned to go on a family vacation to Myrtle Beach, S.C., for March Break next week. But the Gleiser family decided to cancel the trip last month after hearing about tariff threats.

“It’s just not right when there is a trade agreement in place for Donald Trump to cause so much chaos,” said Amy.

Instead, the family will go to Mayan Riviera, Mexico.

Heather Senoran, CTV News Kitchener reporter

8 p.m. EST: Government addresses interprovincial trade barrier

Canada’s first ministers have agreed to reduce interprovincial trade barriers in hopes of strengthening the country’s domestic economy.

“All First Ministers agreed that now is the time to take meaningful action to further liberalize and support the Canadian market so that goods, services, and workers can move freely,” a statement from the Prime Minister’s Office (PMO) reads.

“First Ministers agreed that certified professionals with credentials in one jurisdiction should be able to work anywhere in Canada,” the statement continues.

The federal and provincial governments have directed the Committee on Internal Trade to work with the Forum of Labour Market Ministers to provide a Canada-wide credential recognition plan by June 1.

Lynn Chaya, CTVNews.ca digital breaking news assignment editor

7:20 p.m. EST: B.C. premier predicts more tariff exemptions

B.C.’s premier says he anticipates more tariff exemptions in the coming days as Donald Trump begins to realize “the real-life impacts for American families” of the trade war.

“Trump has realized in fewer than 24 hours how integrated our two economies are, and I expect more and more announcements about exemptions and reducing tariffs, because it is inevitable that the damage is going to accumulate in the United States, to American businesses, to American families, with higher prices,” Eby said Wednesday.

A mere 24 hours after imposing punishing, across-the-board tariffs of 25 per cent on Canadian goods, Trump brought in a 30-day exemption for the “big three” automotive manufacturers.

“These tariffs are a profound economic mistake for the United States,” Eby said.

Lisa Steacy, CTV News Vancouver reporter

7 p.m. EST: New details on ‘heated’ phone call between Trudeau and Trump

CTV News is getting more details about Wednesday’s phone call between Prime Minister Justin Trudeau and U.S. President Donald Trump.

According to a senior government source, the Americans proposed dropping some tariffs, but only if Canada dropped its retaliatory measures.

In response, Trudeau pushed back, saying Canada would only repeal its counter-measures if the U.S. lifted all of their tariffs.

The discussion between the leaders, according to the source, also got “heated” at times, with Trump raising other irritants like the Digital Services Tax and protection for farmers.

Finance Minister Dominic LeBlanc and U.S. Commerce Secretary Howard Lutnick also spoke several times on Wednesday, but no other calls are scheduled for the day.

Stephanie Ha, CTV News Ottawa News Bureau and Mike Le Couteur, CTV News senior political correspondent

6:40 p.m. EST: Joly told Liberals she briefed Carney on Trump tariffs

Foreign Affairs Minister Melanie Joly’s office confirms she has briefed Liberal leadership candidate Mark Carney on President Donald Trump’s tariffs days ahead of Sunday’s leadership vote this week.

Carney is the presumed front-runner for the party’s leadership and could become prime minister as early as next week — which would make Trump’s growing trade war with Canada his problem to sort out.

Joly told Liberal MPs at a national caucus meeting on Wednesday she has been briefing Carney ahead of the Sunday vote.

The Canadian Press

6:22 p.m. EST: Jack Daniel’s maker says Canada ban ‘worse than tariff’

Jack Daniel’s maker says Canadian provinces taking American liquor off store shelves is “worse than a tariff,” and a “disproportionate response” to the levies imposed by Trump.

“I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves,” Brown-Forman’s CEO Lawson Whiting said on a post-earnings call.

Canada on Tuesday imposed 25 per cent retaliatory tariffs on goods imported from the U.S., including wine, spirits, and beer. Several Canadian provinces have also taken U.S. liquor off store shelves.

With files from Reuters

Tammy Ibrahimpour, CTVNews.ca National Digital Producer

6:16 p.m. EST: Yukon premier considers limiting ties with Musk

Yukon Premier Ranj Pillai says his government is considering limiting support for companies tied to Elon Musk as part of a potential second phase of action in response to U.S. tariffs.

Pillai says in a statement in response to U.S. tariffs that Yukon’s new measures could come into effect in the days and weeks ahead if the U.S. doesn’t see “the error in their ways”.

Pillai’s statement delivered in the cabinet office in Whitehorse comes a day after his government announced it was halting new orders for U.S. liquor and developing an assistance program to help Yukoners adapt to the uncertain economic environment.

Pillai says his government has received numerous suggestions from Yukoners about how to handle the trade conflict, including the idea of limiting support for businesses linked to Musk, a prominent supporter of U.S. President Donald Trump.

The Canadian Press

5:25 p.m. EST: Joly says Canada will not ‘go through this psychodrama every 30 days’

Foreign Affairs Minister Melanie Joly says Canada acknowledges it’s “been a challenge” to work with U.S. President Donald Trump’s changing tariff policy, saying “there’s too much unpredictability and chaos coming out of the White House right now.”

“We will be there to stand strong and it’s not true that we will go through this psychodrama every 30 days,” Joly said while speaking to reporters in Toronto. “So our goal is to make sure that we’re having conversations to bring back much more certainty.”

Joly was also asked about calls from the Trump administration to bring back auto manufacturing jobs to the U.S.

“I won’t talk for President Trump, but clearly we need to make sure that we fight for jobs, including, of course, in the fantastic auto sector,” Joly said.

Earlier today, Joly spoke with her U.S. counterpart, Secretary of State Marco Rubio, saying “conversations are continuing.

Stephanie Ha, CTV News Ottawa News Bureau

5:20 p.m. EST: Trump ‘knows nothing about Canadian politics’: former ambassador

Former Michigan governor and ambassador to Canada James J. Blanchard says Trump’s insults towards Canada over the past three months has caused a historic downgrading in Canada-U.S. relationship.

“Donald trump clearly knows nothing about Canadian politics or the structure of Canadian government, and Howard Lutnick has displayed the fact that he doesn’t know anything about automobile manufacturing,” Blanchard said in an interview with CTV News’ Power Play.

“We got these two guys in important positions who know less than an average congressman or governor about how the world works,” Blanchard said. “They shouldn’t be in any public office with that lack of knowledge.”

Tammy Ibrahimpour, CTVNews.ca National Digital Producer

5:15 p.m. EST: ‘China’s the problem’: Premier Ford on Trump’s tariffs

Ontario Premier Doug Ford says Donald Trump’s tariffs are the “craziest thing” he’s ever seen in his life.

Speaking Wednesday on CNN’s “The Lead,” Ford apologized to the American people for Canada’s retaliatory tariffs, but placed the blame on one person.

“There’s one person that’s causing this problem and that’s President Trump,” Ford said.

When asked about the one-month pause on auto tariffs, Ford says all it does is give them “uncertainty again.”

“As far as I’m concerned, the tariffs are still on, and we will not relent.”

Ford also said Trump’s claim that Canada is stealing from the U.S. is “not accurate.”

“Obviously, President Trump would rather attack his closest ally, his best friend in the world, as China is laughing, watching us. They’re ramping up ready to take American and Canadian jobs. We’re not the problem. China’s the problem right now.”

Laura Sebben, CTV News Toronto reporter

5:10 p.m. EST: U.S. tariff frustration could boost Quebec tourism by $1.5B

The weak Canadian dollar and frustrations from the U.S. placing 25 per cent tariffs on Canadian products could bring a major boost to Quebec’s economy in 2025, one tourism group says.

Alliance de l’industrie touristique du Québec, which is composed of regional tourism associations across the province, says it calculated that Quebecers who cancel trips to the U.S and instead travel in the province will spend about $1.5 billion this year.

The group also suggests the total cost of cancelled vacations by Quebecers to the U.S. is expected to reach $3 billion in losses for the American economy

With files from The Canadian Press

Hunter Crowther, CTVNews.ca digital producer

4:19 p.m. EST: ‘Things are very, very fluid’: Foreign Minister Joly

Talking about Canada-U.S. relations and the cross-border imposition of tariffs, Foreign Affairs Minister Melanie Joly says, “things are very, very fluid.” Amid some U.S. officials floating potential reprieves, Joly said “conversations are happening.”

“I completely understand what is at stake,” Joly said, speaking at the Toronto Region Board of Trade.

She also confirmed – after saying yesterday she had a call planned with him at noon today – that U.S. Secretary of State Marco Rubio will be attending next week’s G7 meeting of foreign ministers in Charlevoix, Que.

Rubio’s visit will be the first time a member of the current Trump administration comes to Canada.

Rachel Aiello, CTV News national correspondent

4:13 p.m. EST: TSX finishes over 1% higher

Canada’s benchmark stock index closed higher Wednesday.The S&P/TSX Composite Index finished trading up 298.82 points, or 1.22 per cent, to 24,870.82.Wednesday’s rebound came after a broad selloff in equity markets on Tuesday.

Daniel Johnson, journalist, BNNBloomberg.ca

4:10 p.m. EST: Canadian travel bookings to U.S. plunge

Many Canadian families appear to be protesting Donald Trump’s tariffs and threats of annexation by spending their March break somewhere else.

“This is such a fluid situation, we’ve never seen anything like this,” Flight Centre head of communications Amra Durakovic told CTV News.

Flight Centre reports a year-over-year 40 per cent decline in February bookings to U.S. destinations and says 20 per cent of Canadian travellers who did make U.S. bookings between November and February have since cancelled their trip.

“It’s definitely emotional, there’s a lot of sentiment towards feeling that trust has been broken now, and they just really want to travel anywhere but the U.S.,” Durakovic said.

Durakovic also points to the weak dollar as another factor luring Canadians away from our closest neighbour. “It just really makes the U.S. an undesirable destination to travel to.” She says Canadians who’d planned trips to sunny and warm American spots are instead spending their travel dollars in alternative destinations including Mexico, the Dominican Republic, and Jamaica.

Andrew Johnson, CTV News B.C. bureau chief

4 p.m. EST: Sask., Alta. premiers cut off liquor imports

The premiers of Saskatchewan and Alberta said Wednesday their governments will stop the import of U.S. liquor amid the ongoing tariff conflict.

The Saskatchewan Liquor and Gaming Authority will stop purchasing U.S. alcohol effective immediately, Premier Scott Moe said. Additionally, it will stop selling alcohol to private retailers in the province, and will work to stop buying other U.S. goods.

Alberta Premier Danielle Smith said her government will not allow future imports of U.S. liquor, and is taking further measures to ensure Canadian products sold in grocery stores and other retail locations are clearly labelled.

At a news release advocating for free trade across provinces, Smith stopped short of imposing any changes to oil and gas exports.

Kendra Mangione, CTVNews.ca journalist

With files from The Canadian Press

3:20 p.m. EST: Ontario measures won’t be lifted: Ford

Premier Doug Ford’s office says that it will not be pausing or changing any of the tariff countermeasures it has floated in response to a one-month delay for the auto industry.

Those measures include ripping up a $100-million deal with Elon Musk’s Starlink internet service, removing U.S. alcohol from LCBO shelves, blocking U.S. companies from participating in billions of dollars-worth of provincial procurement, and going through existing contracts “with a fine tooth comb” to see what other deals with U.S. companies can be cancelled.

Ford has also threatened to slap a 25 per cent export tax on the electricity that Ontario sends to three U.S. states as soon as possible. That electricity powers 1.5 million homes and businesses in New York, Michigan and Minnesota.

Joshua Freeman, journalist, CP24.com

3:15 p.m. EST: Trade war between Canada, U.S. could cause ‘pain’ for NHL: Bettman

NHL commissioner Gary Bettman says any negative effects on the Canadian dollar caused by the Trump administration’s tariffs could be “painful” for the league.

Speaking Wednesday on CNBC’s “Squawk Box,” Bettman said the NHL’s seven Canadian clubs perform well and account for 25 per cent of the league’s revenue.

But he said a drop in the Canadian dollar relative to its American counterpart could cause difficulties, as the Canadian teams pay their players in U.S. dollars.

Bettman, who said he has yet to speak to the Trump administration on the issue, said he has spent a lot of time in Canada over the past 30 years and that Canadians “love Americans.”

He said the current animosity relates to a “policy issue” with people in the two countries caught in the middle and hopes it can be resolved soon.

The Canadian Press

2:40 p.m. EST: LeBlanc speaks to French economy minister

Finance Minister Dominic says he spoke to his French counterpart Economy Minister Eric Lombard on Wednesday.

LeBlanc added that Canada is determined to “strengthen our economic ties with our French friends even further” in light of the tariffs imposed by the U.S. administration.

Lynn Chaya, CTVNews.ca digital breaking news assignment editor

2:28 p.m. EST: N.S. premier slams Trump over ‘illegal tariffs’

Nova Scotia Premier Tim Houston didn’t mince words Wednesday when he blasted U.S. President Donald Trump over his administration imposing 25 per cent tariffs on Canadian goods.

“Donald Trump is a shortsighted man who wields his power just for the sake of having it, not having any consideration for destructive impact of his decision on Canadians and also Americans,” said Houston during a news conference Wednesday.

“Canada did not ask for or initiate this. There is only one person that is driving this and that is President Trump. He and his inner circle of ‘yes’ people have declared war on our country and our province.”

Jesse Thomas, CTV News Atlantic reporter

2:20 p.m. EST: Ford says ‘we will not budge’

Ontario Premier Doug Ford says a one-month exemption on tariffs for the auto industry is not good enough and the province is unwilling to accept any tariffs on Canadian-made goods.

“I spoke to the prime minister earlier. We’re on the same page, zero tariffs, and we are not going to budge,” Ford said. “We aren’t going to buckle down. Let’s move forward to the USMCA deal, or CUSMA deal, or NAFTA, whatever you want to call it, and let’s start moving forward. But we will not budge. Zero tariffs. And that’s it.”

Ford made the comment following a cabinet meeting at Queen’s Park. At about the same time, the White House confirmed that the U.S. government will give a one-month exemption on any autos coming into the country under the USMCA agreement negotiated by Trump in his first term.

However, the relief is temporary and does nothing to remove the tariffs placed on the rest of the Canadian economy. The White House also confirmed that further retaliatory tariffs will go into effect on April 2.

Joshua Freeman, journalist, CP24.com

2:12 p.m. EST: Trump open to other tariff exemptions

After confirming Trump will allow for a one-month tariff delay on auto manufacturers, U.S. Press Secretary Karoline Leavitt said the president might consider exceptions on other goods.

Asked about the rising price of eggs in the U.S., Leavitt said “the president is open to hearing about additional exemptions.”

However, later in the briefing, Leavitt insisted: “The reciprocal tariffs will go into effect on April 2. And he feels strongly about that, no matter what, no exemptions.”

“The president does love tariffs. He said it’s one of his favourite words of the English dictionary, and he believes in tariffs, because they’ll ultimately make America rich again,” she said. “They’re going to raise revenue. They’re going to help us pay down our debt. Most importantly, they’re going to bring American jobs here back home.”

Rachel Aiello, CTV News national correspondent and Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor

1:54 p.m. EST: White House press secretary on Trump-Trudeau call

White House Press Secretary Karoline Leavitt continues to insist that Canada is allowing fentanyl to enter the United States, in stating this is the rationale for Trump’s tariff imposition.

In a briefing, Leavitt cited Trump’s social media post, relaying that the president feels Trudeau’s efforts to address fentanyl smuggling is “not good enough,” and “there needs to be repercussions.”

“He told Prime Minister Justin Trudeau that directly,” she said. “The call ended in a somewhat friendly manner, as the president said, but he’s not going to stop standing up for the American people.”

Leavitt’s comments came in response to a reporter that asked specifically what more Canada needs to do.

Canadian officials have repeatedly emphasized that less than one per cent of the seized fentanyl imports in the U.S. comes from Canada.

Further, data from U.S. Customs and Border Protection (CBP) shows fentanyl-related interceptions have decreased.

Rachel Aiello, CTV News national correspondent

1:42 p.m. EST: White House confirms auto tariff delay

When asked in a White House press briefing whether Trump spoke to the “big three auto dealers” about a tariff exemption, U.S. Press Secretary Karoline Leavitt confirmed what was previously reported.

“We are going to give a one-month exemption on any autos coming through USMCA,” Leavitt said, adding that reciprocal tariffs are still in place for April 2.

“But at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”

The car dealers involved include Stellantis, Ford and General Motors.

Lynn Chaya, CTVNews.ca digital breaking news assignment editor

1:35 p.m. EST: Tariff delay was a ‘foot on the chest’

U.S. Commerce Secretary Howard Lutnick appeared on Fox News early this afternoon to talk tariffs.

He was asked why Trump decided to delay the tariffs, initially slated to start at the beginning of February, only to reimpose them a month later.

Asked if the administration was taking a two steps forward, one step back approach, Lutnick said “there has never been a step back.” Instead, Trump’s efforts on tariffs have been “a pounding forward move,” calling the delay a “foot on the chest.”

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

1:14 p.m. EST: Trump to Trudeau: ‘Good luck Justin!’

Trump is now commenting on the call on his Truth Social platform.“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped. He said that it’s gotten better, but I said, ‘That’s not good enough,’” he wrote.

“The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!”

In another post three minutes later, he accused “Governor Justin Trudeau of Canada” of maintaining “Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States.”

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

1:09 p.m. EST: PMO confirms call

The Prime Minister’s Office has released a short statement confirming the call between Trudeau and Trump.

“The Prime Minister and President spoke today about trade and fentanyl. Both countries will continue to be in contact today,” reads the statement.

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

1:00 p.m. EST: PM the only one to speak on Canadian side of call

Prime Minister Justin Trudeau was the only official from the Canadian side to speak on the call with Trump, according to a senior government source.

The morning call, the source said, lasted around 50 minutes.

Mike Le Couteur, CTV News senior political correspondent

12:50 p.m. EST: Trudeau, Trump speak amid trade war

Prime Minister Justin Trudeau spoke with U.S. President Donald Trump on Wednesday, CTV News has confirmed.

The phone call happened not long ago, according to a source.

It comes a day after Trump levied massive tariffs on Canada and Trudeau responded with a first phase of retaliatory countermeasures.

According to a senior government source, discussions continue with Americans.

The official said that U.S. Vice President JD Vance and U.S. Commerce Secretary Howard Lutnick joined the call.

A “very short” readout is expected to be issued shortly.

Rachel Aiello, CTV News national correspondent

12:46 p.m. EST: ‘Tailwinds’ for stock market despite tariffs

Ross Mayfield, an investment strategy analyst at Baird, said in an interview with BNN Bloomberg Wednesday he is bullish on equity markets, despite uncertainty and tariffs becoming the “dominant narrative."

“I think we’re in a tricky spot right now because there’s as much of an underlying scare about economic growth… as there is about the potential for tariffs to weigh on profits and potentially spark a second wave of inflation,” he said, highlighting U.S. employment figures released Wednesday that came in softer than expected.

“Ultimately we remain bullish but think that there could be some more downside weakness here given the kind of cacophony of headwinds.”

12:32 p.m. EST Navarro lobs accusations at Trudeau

Peter Navarro, a White House senior trade and manufacturing advisor, accused Prime Minister Justin Trudeau of allowing “Mexican drug cartels to embed themselves” across the country on CNN this morning.

CTV News has asked the Prime Minister’s Office to respond. He also echoed U.S. Commerce Secretary Howard Lutnick, classifying the trade war as a “drug war” against fentanyl.

“Fentanyl. It’s been called a slow-moving weapon of mass destruction,” he said. Trump has repeatedly named the deadly drug as the impetus for his tariffs, though he has also said he wants change on trade dynamics, and for Canada to become a state.

Canadian leaders have responded with various border measures and highlighted that most of the fentanyl seized in the U.S. comes from Mexico.

“Far less than one per cent of fentanyl flows and less than one per cent of illegal crossings into the United States comes from Canada. But we acted because we know we can always do better,” said Trudeau during a speech yesterday.

“We responded to concerns, including from the president, by implementing an ambitious $1.3 billion border plan, a border plan that includes generational investments in new AI and imaging tools to stop the flow of fentanyl in its tracks.”

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

12:20 p.m. EST: Canada’s UN ambassador on Trump

Bob Rae, Canada’s ambassador to the United Nations, says U.S. President Donald Trump sees the world in a “totally binary way.”Rae says Trump believes that “what’s good for me is bad for you, what’s good for you is bad for me.”Rae says it’s a win-lose proposition and a terrible mistake, adding protectionist policies hurt global trade.

The Canadian Press

12:17 p.m. EST: U.S. officials weighing 1-month delay for tariffs on automakers: Bloomberg

The Trump administration is weighing a one-month delay for tariffs against automakers, Bloomberg is reporting, citing “people familiar with the matter.”

Administration officials met with the heads of Ford Motor Co., General Motors Co. and Stellantis NV to discuss the matter on Tuesday, according to the outlet, again citing sources who were not authorized to discuss the details.

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

11:47 a.m. EST: Ford had ‘good conversation’ with Lutnick

Ontario Premier Doug Ford tells reporters at Queen’s Park that he had a “good conversation” with U.S. Commerce Secretary Howard Lutnick on Tuesday night.

Ford did not address comments that Lutnik made to Bloomberg suggesting that Trump could make a further announcement on tariffs later today, though he appeared to hint at it.

“We had a good conversation. We had a good conversation. Let’s stay tuned until after the prime minister meets with Trump on the phone,” Ford said on the way to a cabinet meeting.

Chris Fox, CP24 managing digital producer

11:35 a.m. EST: Border mayor on relationship impacts

The impact of the new tariffs is seeping into both business and personal relationships, according to the mayor of one of Canada’s border towns.

Fort Erie, Ont., Mayor Wayne Redekop said there’s an element of tension in friendships and family relationships between Canadians and Americans right now that may get worse before it improves. If the tariffs result in layoffs, “that’s going to make feelings harsher towards our American neighbours,” he said in an interview on CTV News Channel Wednesday.

Redekop said some businesses in border communities like his export as much as 90 per cent of their products to the U.S., and as they try to navigate the changes, they’re not sure whether they’ll be able to stay open.

Some are exploring opening a shop south of the border so they don’t need to close, he said. While businesses are interested in maintaining operations in Canada, they’re also worried about keeping their staff employed as long as possible, he added.

Redekop said the damage to business relationships in his area may be long-lasting.“From a business perspective, how do you put all of your eggs in a basket, when you don’t know whether the basket is going to be tipped over tomorrow or the next day or whenever? So that is going to create long-term strain,” he said.

“That’s unfortunate, because it’s been a two-plus century relationship that has developed marvellously over the years. It’s just hard to fathom why someone would essentially go next door, punch their neighbour in the head and say, ‘I don’t like your fence, I’m going to take it down and I’m going to take over your backyard.’”

Kendra Mangione, CTVNews.ca journalist

11:30 a.m. EST: Tariffs could raise new, used vehicle prices

The CEO of the Ontario Motor Vehicle Industry Council tells CP24 that she believes tariffs will shift some buyer behaviour, with more consumers turning to the used vehicle market amid an expected rise in new vehicle prices.

Maureen Harquail, however, says that if the tariffs remain in place for any period of time it could “fuel used car prices as well.”

“This is not good for business and ultimately this will not be good for consumers,” she says. “We are very concerned about the impact these tariffs will have on all of the dealers we register but, of course, also on consumers who are going to end up paying the price.”

Harquail added that the tariffs have already had some impact on the industry in Ontario, with reports of “some manufacturers pausing or at least slowing down making any significant decisions” around retooling production lines and other investments.

“If these last for a long time it will have a significant impact on the manufacturing industry here in Ontario and in Canada broadly,” she said.

Chris Fox, CP24 managing digital producer

11:07 a.m. EST: Unifor president on auto industry impact

The leader of Canada’s primary union for auto workers is warning of a sweeping and almost immediate impact of Trump’s tariffs on “the biggest industry in North America.”

Lana Payne, national president of Unifor, said in an interview on CTV’s Your Morning the tariffs will impact the auto industry on both sides of the border, given how “interconnected the auto industry is across North America.”

Speaking about an estimate from Ontario Premier Doug Ford about auto plant closures within 10 days of the imposition of tariffs, Payne said past supply chain impacts have put the industry “in a lot of trouble in a very quick period of time.” And if plants can’t get parts, layoffs are likely, she said.

It’s possible the impact on the auto industry may “bring this whole tariff discussion to a head,” she said Wednesday.

“If you have the auto industry … not being able to operate, not being able to function, pretty quickly the president of the United States is going to have to make some serious decisions here about what he’s done and the impact of these tariffs on workers on both sides of the border.”

Kendra Mangione, CTVNews.ca journalist

10:55 a.m. EST: Loonie traders guessing

The Canadian dollar is rallying Wednesday morning after U.S. Commerce Secretary Howard Lutnick hinted that tariff relief could be coming for Canada.

But Lutnick was short on details, so uncertainty remains for loonie watchers like Shaun Osborne, managing director and chief FX strategist at Scotiabank.

“It’s quite confusing,” Osborne told BNN Bloomberg in a Wednesday interview, about an hour after Lutnick told Bloomberg television that some sectors could see an exemption from tariffs, and that Trump is expected to make a tariff announcement later today.

“The messaging late yesterday was that there might be some sort of concession from Trump today, so we got a little bit of a pop in the Canadian dollar late yesterday afternoon. We’ve held those ranges overnight and this morning.”

Osborne said that Lutnick’s comments, though they’ve been supportive for the loonie since they were made, have added to the confusion. “It’s not really clear what kind of concessions he’s talking about or if we’re going to get any concessions at all,” he said.

The loonie was trading for 69.61 cents US in early trading Wednesday, compared to 69.02 cents US on Tuesday.

Jordan Fleguel, BNN Bloomberg journalist

10:40 a.m. EST: ‘Too early to know’ lobster industry impacts

Geoff Irvine, executive director of the Lobster Council of Canada, says it’s “too early to know” of the impacts tariffs will have on his industry, which accounted for nearly $2 billion in Canadian exports last year, supporting hundreds of communities along the East Coast.

“We don’t really know until we start to ship product into the market,” he said in an interview with CTV News Channel Wednesday morning. “As of yesterday, the tariffs are on, so anybody shipping frozen or live lobster in has to pay the tariff.”

Irvine notes that typically, the importer of record in these kinds of deals, who is responsible for paying the 25 per cent tariff, is a Canadian company.

“Automatically, that means they have to raise their prices by 25 per cent to achieve the same return,” he said. “The question is: ‘Will the market accept it?’ And it’s too soon to know, since it just started yesterday.”

Charlie Buckley, CTVNews.ca national digital producer

10:28 a.m. EST: Lutnick understands ‘chaos’: Ford

Ontario Premier Doug Ford says he feels U.S. Commerce Secretary Howard Lutnick understands Canada’s position on the unfolding trade war between the two countries and the “chaos” it could bring after the two had a phone conversation last night.

Ford made the comment in an interview with ABC News on Wednesday morning.

“First of all, Secretary Lutnick is a super bright individual. He understands markets, he understands business,” Ford told ABC News. “And it (the tariffs) turned the U.S. and Canada into mass chaos over the last couple days. You know, the market tanked $3 trillion I know it’s coming back up a little bit, but they want certainty, and that’s all I was telling to the secretary. You know, don’t attack your closest friend and ally.”

Ford said that all Canada wants is a fair trade agreement and added that Lutnick understands. “That’s what my message to him was, and he understands. He’s actually, he’s a good man,” he said.

Ford also said that behind closed doors, Republican politicians agree that the trade war makes no sense for the economy in either country.

Joshua Freeman, journalist, CP24.com

9:44 a.m. EST: Trudeau, Trump expected to speak today: source

A government source told CTV News Canadian Prime Minister Justin Trudeau is expected to speak with the president today.

CNN and Reuters are reporting a call between the two world leaders is scheduled. Trump, for his part, is expected to make a public address later today, according to his commerce secretary, Howard Lutnick.

Neither leader’s public schedule mentions a call.

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

9:40 a.m. EST: Markets tick higher after Lutnick hints at tariff relief

North American equity markets opened higher on Wednesday following a tumultuous day of trading on Tuesday after U.S. President Donald Trump’s administration imposed 25 per cent tariffs on most goods from Canada and Mexico.

The S&P 500 Index in New York and S&P/TSX Composite Index in Toronto each rose less than one per cent at the open, following remarks from U.S. Commerce Secretary Howard Lutnick earlier Wednesday hinting that further announcements on tariffs are expected this afternoon.

Jordan Fleguel, BNN Bloomberg journalist

9:35 a.m. EST: AP fact check: Economists differ with Trump on tariffs

President Donald Trump‘s Tuesday night address to a joint session of Congress highlighted several of the initiatives he’s started in his first six weeks in office, but many of his comments included false and misleading information.

TRUMP: “Tariffs are about making America rich again and making America great again. And it’s happening. And it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that. It won’t be much.”

THE FACTS: Trump is banking on the idea that taxing imports is the road to riches for the United States. Most economists say Trump’s tariffs would hurt the country, as they’re tax increases that could raise the costs of goods in ways that could also harm economic growth. Trump suggests that the impact on inflation would be minimal.

When the Yale University Budget Lab looked at the tariffs that Trump imposed Tuesday on Canada, Mexico and China, it found that inflation would increase a full percentage point, growth would fall by half a percentage point and the average household would lose about $1,600 in disposable income.

The Associated Press

8:29 a.m. EST: U.S. commerce secretary hints at tariff carve-outs

U.S. Secretary of Commerce Howard Lutnick says meeting “somewhere in the middle” is a likely outcome for potential adjustments for U.S. tariffs on Canada and Mexico, noting that carve-outs for some industries are a possibility.

“There are going to be tariffs, let’s be clear,” Lutnick told Bloomberg Wednesday morning in a live interview.

“It will be 25 per cent but ... there will be some categories left out; it could well be autos, could be others as well,” he said, describing his team’s expectations.

According to the secretary, a decision by U.S. President Donald Trump and subsequent announcement on immediate next steps in the tariff fight is expected later today.

Charlie Buckley, CTVNews.ca national digital producer

6:32 a.m. EST: Canada requests WTO consultations with U.S. over ‘unjustified tariffs,’ says ambassador

Canada has requested consultations with the United States on “unjustified tariffs” at the World Trade Organization, Canada’s ambassador to the WTO in Geneva said on Wednesday.

“The U.S. decision leaves us with no choice but to respond to protect Canadian interests,” Ambassador Nadia Theodore said in a statement posted on LinkedIn. A WTO spokesperson confirmed the receipt of Canada’s request for consultations.

U.S. President Donald Trump’s new 25% tariffs on imports from Canada and Mexico took effect on Tuesday, along with fresh duties on Chinese goods.

The moves, which could upend nearly $2.2 trillion in annual trade, came after Trump declared that the top three U.S. trading partners had failed to do enough to stem the flow of fentanyl and its precursor chemicals into the United States.

“Everyone plays their position. I played mine today and on behalf of the Government of Canada, requested WTO consultations with the Government of the United States in regard to its unjustified tariffs on Canada,” Theodore said.

Reuters

What is a tariff?

Tariffs are a tax on imported goods. Like other taxes, they’re generally used by governments to help meet policy objectives and raise revenue.

The main goal of tariffs is usually to help boost and protect domestic producers by raising costs for importers. The trade-off is that those costs are often passed on to consumers.

Free-trade agreements generally either lower or remove tariffs between the member countries. But sometimes it doesn’t work out that way.

The president’s executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect just after midnight on Tuesday.

Trudeau on Tuesday said Canada is immediately introducing 25 per cent retaliatory tariffs on $30 billion worth of American products and will expand them to cover another $125 billion in U.S. goods in 21 days. It also plans to file claims through the existing free trade agreement between Canada, the U.S. and Mexico, as well as with the World Trade Organization.

Here’s how yesterday’s events unfolded:

10:30 p.m. EST: U.S. no longer ‘subsidizing’ Canada, Mexico: Trump

Trump repeated his claims that fentanyl being trafficked at the border is why America will no longer “subsidize” Canada and Mexico.

Hunter Crowther, CTV News National Digital Producer

10:05 p.m. EST: Trump spins tariffs, promises

Trump is now spinning the tariffs implemented today against Canada, Mexico and China, saying the duties are already having an impact as large automakers are now planning to build factories in the U.S. to avert tariffs.

Trump also said that tariffs make Americans rich.

“Tariffs are about making America rich again and making America great again,” Trump said. ”It’s happening, and it will happen rather quickly. There’ll be a little disturbance, but we’re okay with that. It won’t be much.”

Trump also announced reciprocal tariffs will go into effect April 2 on top of the ones already put into effect.

“That’s reciprocal, back and forth. Whatever they tax us, we will tax that,” he said.

Eric Ham, CTV News Political Analyst

9:57 p.m. EST: Trump on inflation; frustrated with Democrats

Trump addresses rising inflation only to say nothing about the trade war he implemented earlier today on America’s biggest trading partners.

Trump appears deeply agitated that Democrats aren’t showing support for his speech. This is his fifth such speech to a joint session of Congress — and all have been deeply polarized — so it’s surprising he’s so bothered by their lack of support.

Eric Ham, CTV News Political Analyst

9:38 p.m. EST: Trump gloats over first month in office

As expected, Trump is taking a victory lap for freezing funds for government agencies, mass deportations and rolling back all of Biden’s Executive Orders.

The president is also using this address to gloat, not just of his campaign victory, but the end of the criminal investigations that dogged him since leaving office.

But it’s important to note: the many Executive Orders signed by the president can easily be undone by his successor. To date, none of the current orders signed by Trump are making their way through congress to ensure they are enshrined into law and have lasting impact.

Eric Ham, CTV News Political Analyst

WATCH: Rep. Al Green, D-Texas, interrupts Trump’s speech

Watch the moment Rep. Al Green, D-Texas, interrupts U.S. President Trump’s speech before Congress before being escorted out.

9:24 p.m. EST: Rep. Al Green escorted from U.S. Congress

Massive disruptions occurring as 78-year-old Rep. Al Green, D-Texas, has been removed by the Sergeant at Arms.

A stunning turn of events as House Minority Leader, Hakeem Jeffries, directly instructed his caucus to refrain from any protests that might draw attention to the Democrats.

The moment clearly underscores the deep partisan divisions shaping American politics.

Eric Ham, CTV News Political Analyst

9:20 p.m. EST: ‘America is back’: Trump begins address to Congress

Trump begins his speech by proclaiming “America is back.”

Hunter Crowther, CTV News National Digital Producer

9:10 p.m. EST: What will Trump talk about?

Trump will attempt to make this speech a victory lap for his policies, even amid the chaos occurring both at home and abroad.

It’s important to note, however, there’s a pause in the divisions within the Republicans on Capitol Hill. They have less than 10 days to find a way to fund the government or face a shutdown during the honeymoon phase of the president’s tenure.

Democrats will not be there to save Speaker Johnson this time around, much like what happened during former U.S. president Joe Biden’s tenure.

Eric Ham, CTV News Political Analyst

8:55 p.m. EST: The room fills before Trump’s address

The well in the House is quickly filling up. Vice-President J.D. Vance is really enjoying his elevated role, glad-handing with lawmakers throughout the stands before taking his place atop the well.

The entire Trump family is also on hand. Veterans Affairs Secretary Doug Collins will not be in attendance, as he is serving as the “designated survivor” of the Trump cabinet.

Of course, Elon Musk is also in the room awaiting the president’s address.

Eric Ham, CTV News Political Analyst

8:40 p.m. EST: Trump to address U.S. Congress

Trump is now 30 minutes away from his joint address to the U.S. Congress. We’re only minutes away before the lights go up in the hall and the Speaker will call the session into order. The president and First Lady Melania Trump have just entered the Beast, making their way just down the street to Capitol Hill.

Eric Ham, CTV News Political Analyst

8 p.m. EST: Ottawa will soon announce support to mitigate tariff impact

Trudeau virtually met with Canada’s premiers on Tuesday to discuss the U.S. tariffs against Canada, according to a statement released by the Prime Minister’s Office (PMO).

Finance Minister Dominic LeBlanc also said during the meeting the federal government “will soon announce an initial package of supports to mitigate the impact of U.S. tariffs on Canadian workers, families, and businesses.”

The statement also said that the prime minister and premiers discussed “how to reduce barriers to internal trade and labour mobility within Canada.”

Hunter Crowther, CTV News National Digital Producer

7:30 p.m. EST: ‘It’s time for us to break up with the U.S.‘: Saint John mayor

Saint John, N.B., Mayor Donna Reardon says the arrival of the tariffs marks a “sad day for our strong partnership with our neighbours to the south.”

In a public letter released Tuesday, Reardon addressed the U.S. tariffs placed on Canadian goods, noting that a number of major Saint John-area companies like Moosehead Brewery and Irving Oil depend on cross-border trade.

“These tariffs will have real consequences – from increased costs for essential goods and energy in the U.S., to potential disruptions for local businesses and families,” Reardon said.

The mayor even went as far as to say it’s time for Canada to “break up” with the U.S. She acknowledges there will be pain coming for her city and region but also sees the moment as a chance to grow.

Avery MacRae, CTV News New Brunswick video journalist

7:20 p.m. EST: Lutnick called Ford for ‘tough’ conversation

U.S. Commerce Secretary Howard Lutnick called Premier Doug Ford on Tuesday for a “tough and aggressive” conversation after the Ontario government announced its plan to slap a 25 per cent export tax on the electricity it supplies to three U.S. states, CTV News has learned.

Sources said Lutnick asked Ford to back off his retaliatory tariffs, but the Ontario premier refused.

Codi Wilson, CP24 journalist and Siobhan Morris, CTV News Toronto Queen’s Park bureau chief

6:30 p.m. EST: N.W.T. premier says U.S. tariffs harmful

Northwest Territories Premier R.J. Simpson is calling U.S. President Donald Trump’s decision to impose tariffs on Canadian goods short-sighted and harmful.

He says the territory shouldn’t have to bear the consequences of what he calls a reckless trade decision.

Simpson promises to reinforce the N.W.T’s own economic resilience by no longer purchasing from the U.S.

He also demanded that the North be included in critical nation-building investments.

The Canadian Press

5:30 p.m. EST: Kentucky governor says Canada-U.S. relationship ‘too important’

Kentucky Gov. Andy Beshear spoke to Vassy Kapelos on CTV’s Power Play Tuesday, saying the vast majority of Kentucky residents and Americans view Canada as one of their closest allies.

“This relationship is far too important to have a trade war,” Beshear said, adding that Kentucky residents should want a “strong Canada,” as nearly 25 per cent of the state’s exports go up north.

The governor said that tariffs will hurt Americans in a number of ways, including at the pump, at the grocery store and with housing prices.

“An immediate tariff isn’t going to create a factory overnight, but it is going to drive up prices overnight,” he said.

Beshear ended the interview by saying that the issue of tariffs has found common ground between Democrats and Republicans in Kentucky.

“If Mitch McConnell, Rand Paul and myself are all saying something is a bad idea, it’s because it’s a really bad idea.”

Hunter Crowther, CTV News National Digital Producer

5:20 p.m. EST: Foreign Minister Joly on Lutnick’s ‘in the middle’ remark

Appearing on CTV News Channel’s Power Play not long after Lutnick seemed to suggest there could be room to negotiate, and meet Canada “in the middle,” Foreign Affairs Minister Melanie Joly downplayed that possibility.

“Before the U.S. launched its trade war, they didn’t have any communication with us… We’ll see what will happen in the State of Union speech of the president tonight before Congress, but let’s be frank, we’ve done the work at the border,” Joly said. “We’ve done everything to make sure that the Americans would be happy.”

Joly said she has a call scheduled with Secretary of State Marco Rubio at noon tomorrow, but being “frank,” at the end of the day, “the only person that really does a deal is the president, and the people around him are always trying to guess what he will do.”

She said while Canadian officials will still continue to engage with Trump’s team, “none of them know exactly what the president wants.”

Rachel Aiello, CTV News national correspondent

5:10 p.m. EST: Energy trader says tariffs to impact Canadian producers primarily

Producers of Canadian energy are likely to be more impacted by tariffs compared to U.S. consumers, according to one energy trader.

Rebecca Babin, senior energy trader at CIBC Private Wealth, said in an interview with BNN Bloomberg Tuesday that U.S. consumers will bear some of the higher costs for crude oil driven by tariffs, but the “primary blow is going to be dealt to the Canadian producers.”

“That’s really because there’s no real other outlet for the heavy WCS (Western Canada select) crude to go. You can send some of it through the pipelines to Asia, but there’s no other way to move your crude outside of Canada,” Babin said.

Daniel Johnson, BNNBloomberg.ca journalist

5:58 p.m. EST: Tariffs on potash will hurt American growers: experts

In anticipation of the tariffs, Canadian potash giant Nutrien moved as much of the pink gold as possible south of the border, ahead of the spring planting season.

“While we will continue to serve our U.S. customers, the cost of tariffs would ultimately be borne by U.S. farmers,” Nutrien spokesperson Shawn Churchill said in a statement.

Canada is the world’s largest potash producer and exporter by a long shot. The mineral is primarily used to produce fertilizer.

Canada supplies more than 80 per cent of the potash used on American farms. The biggest buyers are U.S. corn farmers in the Midwest.

A 25 per cent tariff on potash gives farmers two options: increase their budgets or cut back on fertilizer.

Stuart Smyth, a professor of agricultural and resource economics at the University of Saskatchewan, suspects most farmers will accept the higher costs rather than risking their crop.

Allison Bamford, CTV News correspondent

4:50 p.m. EST: Trump could meet Canada ‘in the middle’: U.S. Commerce Secretary

With tariffs now in place on both sides of the border, U.S. Commerce Secretary Howard Lutnick is signalling there could be room to negotiate and “work something out.”

In an interview with Fox Business on Tuesday afternoon, Lutnick says he’s been speaking with Canadians and Mexicans “all day” about measures they’re taking to address the flow of fentanyl, adding “the president’s listening.”

“It’s not going to be a pause. None of that pause stuff, but I think (Trump is) going to figure out, ‘You do more and I’ll meet you in the middle some way,’ and we’re going to probably be announcing that tomorrow,” Lutnick said.

Stephanie Ha, CTV News Ottawa News Bureau

4:49 p.m. EST: Doug Ford pens letter to governors, senators, congress officials

In a post on X, Doug Ford says he “won’t hesitate” to increase the charge of retaliatory measures or “shut the electricity off completely.”

His letter, penned to officials from New York, Michigan and Minnesota, also emphasizes that Ontario is “prepared to add 25 per cent surcharge” to the electricity the province exports to the U.S.

Jermaine Wilson, CTV News Toronto journalist

4:40 p.m. EST: Manitoba pulls U.S. booze, offers tax deferrals to businesses

The Manitoba government offered tax deferrals to businesses in the province Tuesday and pulled United States products from liquor stores in response to tariffs imposed by U.S. President Donald Trump.

Businesses affected by the tariffs will have the option of deferring payments of both the provincial sales tax and the health and post-secondary education tax levy — commonly called the payroll tax — for at least three months.

“This will start with the February tax period and go for three months before we reassess. This allows businesses to keep cash and protect your jobs,” Premier Wab Kinew wrote on the X social media platform, formerly known as Twitter.

The ban on U.S. liquor is expected to affect about six per cent of products sold by Crown-owned Manitoba Liquor and Lotteries, including 409 spirits, 341 wines and many beers and other products. The ban only applies to products made in the U.S., not to U.S.-based brands such as Budweiser that are brewed in Canada.

Kinew has hinted at other retaliatory measures, such as forbidding U.S. companies from bidding on Manitoba government contracts, but there was no word on that possibility Tuesday.

The Canadian Press

4:30 p.m. EST – What will cost more, and why?

With both the U.S. and Canadian governments imposing tariffs, consumers on both sides of the border will be paying more.

CTV News’ National Correspondent Rachel Aiello explains why that is, and what will cost more.

Trump’s tariffs on Canada will make Canadian products going into the U.S. more expensive, which will hurt home-grown businesses who export.

But, the U.S. president’s trade action will also end up costing everyday Americans, as U.S. companies that buy Canadian will bear the cost and will likely pass that on to their customers.

It goes both ways, though.

Canada’s retaliation targets key U.S. sectors, but consumers on this side of the border will see prices rise.

Among what could cost you more depending on your habits, are:

• your morning coffee or orange juice;

• bathroom essentials such as shampoo and deodorant;

• your undergarments and the clothing you put on top;

• cocktail essentials such as liquor and bitters;

• plus handbags, helmets, and home-building materials.

Federal officials have said these items were chosen to minimize the impact on shoppers in this country, as there are made-in-Canada alternatives.

And this is just phase one. Canada plans to impose another round of tariffs on a longer list of U.S. products in 21 days.

Rachel Aiello, CTV News national correspondent

4:15 p.m. EST: N.L. premier says tariffs are part of Trump’s ‘imperialistic agenda’

Newfoundland and Labrador Premier Andrew Furey offered a grim view of Trump’s tariffs. Echoing Trudeau, he said tariffs are part of an “imperialistic agenda” that includes turning Canada into the 51st U.S. state.

“The president is using the excuse of fentanyl and conflating issues to drive tariffs in an ultimate strategy to create economic chaos across Canada and advance his imperialistic agenda,” Furey told CTV News Channel. “Make no mistake about it, the president is not joking when he says ‘the 51st state.’”

Furey said that during a recent trip by Canadian premiers to Washington DC, U.S. officials made it clear that Trump should be taken at his word about annexing Canada.

“The message that I received down there, and the message that we need to make sure that we understand as Canadians, is that this man is serious in his agenda, one which I believe is to reset a new world order with an imperialistic approach for the United States,” Furey said. “And that is going to require incredible courage by Canadians to meet the moment, but I know they will.”

Daniel Otis, CTVNews.ca journalist

4:11 p.m. EST: Ford says U.S. will get ‘hurt tremendously

Ontario Premier Doug Ford made an appearance on MSNBC on Tuesday afternoon, warning that Americans will get “hurt tremendously” as a result of the trade war started by Trump.

“President Trump had a mandate to come in and create more jobs. That is the total opposite (of what will happen). Manufacturing plants will close, assembly lines will shut down within the auto sector in the next week, unemployment will go up and inflation will go up, the cost of gas will go up,” Ford said.

Ford told MSNBC he is committed to cutting off “everything we possibly can” to the U.S., including nickel exports.

“I don’t want to go to China, I don’t want to ship it out but if he (Trump) keeps putting out these threats and continues to attack our families and businesses we will have no choice,” he said. “I am the first to say let’s tariff China. They are the problem, not your closest friend and ally.”

Chris Fox, CP24 managing digital producer

4:09 p.m. EST: S&P 500 and Dow end lower dragged down by trade tensions

The benchmark S&P 500 and Dow finished lower on Tuesday as trade tensions escalated following U.S. President Donald Trump’s new tariffs on Canada, Mexico and China.Citigroup and JPMorgan Chase & Co fell, sending the bigger banks index lower.

The CBOE market volatility index rose 0.70% to its highest since December 20.According to preliminary data, the S&P 500 lost 71.04 points, or 1.21%, to end at 5,778.68 points, while the Nasdaq Composite lost 67.12 points, or 0.37%, to 18,283.07.

The Dow Jones Industrial Average fell 673.34 points, or 1.56%, to 42,517.90.Car makers Ford and General Motors, which have vast supply chains across North America, fell. The domestically focused Russell 2000 index dropped.

Reuters

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.”

Daniel Otis, CTVNews.ca 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

12:17 p.m. EST: ‘It’s scary as an autoworker'

Windsor is one of the most trade-dependent cities in Canada and exports billions of dollars worth of motor vehicles, auto parts and agricultural products to the United States every year. The city is “on pins and needles,” according to the CEO of the local chamber of commerce who calls the tariffs “an existential threat” to the city.

It’s a sentiment echoed by workers at the Stellantis plant, which manufactures Chrysler Pacificas, Dodge Carvans and Dodge Chargers.

“It’s scary as an autoworker,” says Jay Mercier, who has worked at the plant for 25 years. “It’s part of the emotional roller coaster of being an autoworker.”

Like many people in the Windsor community, most of Mercier’s family works in the auto industry or in a spin-off job.

“It weighs on all of us,” he says. My wife also works here so it’s all our eggs in this basket.”

Heather Wright, CTV News Journalist

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.