After days of speculation, U.S. President Donald Trump has announced heavy tariffs on Canada over border security and alleged trade deficit issues — marking a significant escalation in U.S.-Canada trade relations that could lead to a trade war.
“I can confirm that, tomorrow, the February 1 deadline President Trump put into place with a statement several weeks ago continues,” said White House press secretary Karoline Leavitt on Friday.
A 10% oil and gas tariff will be included on February 18, and "nothing can be done" Trump reportedly said on Friday.
The rest of the goods from Canada will be hit with a 25% tariff.
Microchips, steel, aluminum and copper are included.
This comes despite a massive lobbying attempt by Alberta Premier Danielle Smith to stop the tariffs on energy. She even visited Trump in his home in Mar-a-Largo.
Trump imposed another 25% tariff on Mexican goods — 10% on China — despite Canada's recent effort to improve border security.
He said the tariffs could "substantially increase" in the future.
Trump denied the tariffs would cause inflation in the US.
"Tariffs don't cause inflation, the cause success," he said.
"Tariffs is one of the most beautiful words in the dictionary."
Too many drugs and migrants — an "invasion" — are entering the U.S. from Canada, he said.
Pundits argue Canada's border security problems are far less than Mexico.
Canada now has two Black Hawk helicopters patrolling its border with the U.S. Ottawa will spend $1.3 billion on new border security measures over the next six years. Alberta has deployed a sheriff force to the Montana border.
"I met with our Canada-U.S. council today," said Prime Minster Justin Trudeau on Friday.
"We're working hard to prevent these tariffs, but if the United States moves ahead, Canada is ready with a forceful and immediate response."
Trudeau has a poor relationship with Trump — who has threatened to annex Canada.
Trump criticizes Canada for contributing to a U.S. trade deficit, suggesting the U.S. does not need Canadian products like cars, lumber, or energy, which he claims are abundant in the U.S.
"We're going to be demanding respect from other nations," Trump said recently.
"Canada, we have a tremendous (trade) deficit with Canada. We're not gonna have that anymore. As you probably know, I say you can always become a state. If you're a state, we won't have a deficit, we won't have to tariff you."
The tariffs will force Canada into a recession, say analysts. The European Union is said to be on Trump's tariff list.
“Am I going to impose tariffs on the European Union? You want the truthful answer or shall I give you a political answer? Absolutely. The European Union has treated us so terribly,” Trump told reporters in the Oval Office.
