7 hours Ago By Financial Post
United States President Donald Trump followed through on his threat to impose tariffs on imports from Canada on Saturday, signing executive orders that will enact a 25 per cent tariff on all Canadian goods and 10 per cent levy on Canadian energy, according to U.S. media reports.
Both tariffs are set to take effect at 12:01 a.m. Tuesday morning.
A similar 25-per-cent duty has been levied against Mexican goods while a 10 per-cent tariff is being applied to Chinese imports. “Today, I have implemented a 25 per cent Tariff on Imports from Mexico and Canada (10 per cent on Canadian Energy), and a 10 per cent additional Tariff on China,” said Trump, in a post on social media. “This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.
” Prime Minister Justin Trudeau met with cabinet members and premiers Saturday afternoon to discuss the tariffs and Canada’s response. According to media reports, the executive orders include a retaliation clause that gives the president the leeway to expand the scope of the tariffs if Canada responds in kind. Earlier this week, the Bank of Canada said a protracted trade war with 25-per-cent tariffs would lead to a recession, shrinking Canada’s economy by as much as three per cent.
Nearly $3.6 billion of Canada-U.S trade crosses the border every day, amounting to a $1.
3 trillion trading relationship annually. More to come..
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