By Canadian Press

Canada waiting to see if Trump starts North American trade war with steep tariffs

Mar 3, 2025 | 2:02 AM

WASHINGTON — Canada is bracing to see whether U.S. President Donald Trump follows through on his threats of economy-wide tariffs — or whether another last-minute pause materializes, averting a North American trade war.

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

It remains unclear what Canada could do to persuade the U.S. president to drop the tariff threats for good.

Prime Minister Justin Trudeau has said if the levies go into force, Ottawa will revive its previously announced plan for retaliatory tariffs.

Those were to begin with an initial 25 per cent levy on $30 billion in U.S. products, with duties on another $125 billion worth of goods three weeks later.

In an interview broadcast Sunday on Fox News, 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.

This report by The Canadian Press was first published March 3, 2025.

Kelly Geraldine Malone, The Canadian Press