Trump Sworn In as 47th U.S. President, Delays Immediate Tariffs on Canada, Mexico and China
Finance Minister Dominic LeBlanc confirmed that a retaliatory tariff plan targeting $37 billion worth of American goods is ready to be implemented if necessary.
Donald J. Trump officially assumed office as the 47th President of the United States on Monday, offering an unexpected reprieve to Canada and other key trading partners by holding off on his campaign promise to impose tariffs on imports. The decision, confirmed by U.S. officials, provides temporary relief for nations bracing for potential economic fallout.
During his campaign, Trump vowed to levy significant tariffs, including a 25% duty on Canadian goods, a 10% across-the-board tariff on imports from all countries, or a phased tariff that escalates over time. However, according to a senior administration official, the newly inaugurated president will instead direct federal agencies to investigate trade deficits and examine unfair trade practices, with specific attention on Canada, Mexico, and China.
The decision not to enact tariffs immediately was first reported by The Wall Street Journal, easing fears of swift economic disruption. While trade was a cornerstone of Trump’s campaign rhetoric, his inaugural address made only brief references to tariffs, focusing instead on broader economic reforms aimed at protecting American workers.
A 25% tariff on Canadian goods could have been economically devastating, with experts warning even a 10% levy would significantly reduce Canada’s GDP. Such a scenario might have pushed the country into a recession, necessitating billions in government stimulus to stabilize the economy.
Canada has proactively prepared for potential trade disruptions. Finance Minister Dominic LeBlanc confirmed that a retaliatory tariff plan targeting $37 billion worth of American goods is ready to be implemented if necessary. “We’re prepared to respond very quickly if he decides to impose tariffs,” LeBlanc stated during a Monday interview with CBC News, just hours before Trump’s inauguration.
Similar stories
Comments are closed.