'None of this makes any sense,' says business academic
The tariffs war between Canada and the United States has intensified with Prime Minister Justine Trudeau indicating that his country is ready to retaliate against new tariffs imposed by U.S. President Donald Trump.
On Monday, Trump signed orders imposing 25 per cent tariffs on all steel and aluminum imports – including from Canada.
These will take effect March 12 and be imposed "without exceptions or exemptions," Trump said, according to a CBC report.
Trump said the tariffs are meant to encourage production in the U.S., but he once again expressed his desire to make Canada a part of the U.S.
"All you have to do is make it in the United States. We don't need it from another country," he said, according to the CBC.
Trudeau, however, vowed that Canada will give a "firm and clear" response to the new tariffs imposed by Trump, according to a BBC report. He described the new tariffs as "entirely unjustified".
The US imports six million tons of Canadian steel products and more than three million tons of aluminum products per year - more than from any other country, said the report.
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Source: U.S. Department of Commerce
And more than half of US aluminum imports come from Canada, according to the report.
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Source: BBC, U.S. Department of Commerce
Trump had previously decided to put a temporary halt on imposing tariffs on Canadian goods entering the US. Trump’s decision to put a halt on the tariffs came after Trudeau agreed to reinforce his country's border with the US to clamp down on migration and the flow of the deadly drug fentanyl, according to a BBC report.
‘None of this makes any sense’
McMaster University's Marvin Ryder, an associate business professor, has expressed disbelief with Trump’s latest move, saying he doesn’t know where Trump will get aluminum and steel in quick order if it's not from Canada.
"Why are you doing this to your best and closest ally?" Ryder said, according to another CBC report. "None of this makes any sense."
The latest tariffs will cause more difficulties for Canadian firms, says another expert.
"Absolutely yes, there will be some impact [in Hamilton]," said Tony McLaughlin, who worked at Stelco's plant in the city for 34 years before moving into a union position, in the report.
"It's going to hurt business. We're already on short orders."
As far back as November 2024, various groups called on the Canadian government to take decisive action following Trump’s threat of imposing 25 per cent tariffs on Canada.
Washington meeting with Canadian premiers
Meanwhile, Canadian premiers are heading to Washington, D.C. for a Council of the Federation mission from Feb. 11 to 13, aimed at strengthening Canada-U.S. relations.
“I was, like all Canadians, deeply disappointed by President Donald Trump’s decision to announce damaging tariffs, but I am encouraged by the decision to pause tariffs for 30 days and the progress the pause represents. This is further evidence that diplomacy and action on border security matters,” says Alberta Premier Danielle Smith.
The ministers will meet with U.S. decision makers and influencers to continue efforts to deescalate tensions between the two countries.
“Our economies are deeply connected, supporting workers and businesses on both sides of the border in sectors such as energy, seafood, forestry, agriculture and aquaculture, among others,” says New Brunswick Premier Susan Holt. “We are heading to Washington to stress how this partnership benefits both of our economies and our communities.”
Amid the ongoing tariffs issue, one expert is calling on Canadian employers to make changes to their approach to the supply chain. Every Canadian organization affected needs to be building resiliency and agility right now, Alain Sawaya, national leader of KPMG in Canada's Supply Chain practice, says. And that includes “looking holistically at their supply chain strategy and assessing their operating risks and contractual obligations – and alternatives – in this new trade environment."
Premiers convene for joint action amid tariffs war
On Friday, Lawrence MacAulay, federal minister of agriculture and agri-food, convened provincial and territorial ministers of agriculture to discuss several key areas of interest for Canada’s agriculture sector in the current context of the Canada-United States trading relationship.
The tariffs halt that Trump ordered just last week will only be in effect for 30 days.
“As ministers responsible for agriculture and agri-food, it’s our job to stand up for Canadian producers,” said MacAulay. “This important discussion, and our continued partnership, will help to keep our supply chains running smoothly, the sector strong, and build lasting resilience.”
Ministers spoke of the “well-established and valuable integration of international supply chains to both Canadian and American producers and businesses, and renewed their commitment to take ongoing collaborative action across orders of government in response to potential market disruptions,” according to the federal government.
Roundtable discussions focused on region-specific concerns, planned engagement activities, and ongoing trade negotiations with key partners. Ministers underscored the importance of international market expansion and diversification to support Canada’s agriculture and agri-food sector and its contribution to our long-term prosperity.
