Canadians worried about being slapped with U.S. tariffs Monday can breathe a brief sigh of relief as President-elect Donald Trump is reportedly not going to impose tariffs on day one of his presidency, as previously threatened.
According to U.S. media reports, including by the Wall Street Journal, Trump is planning to issue a presidential memorandum for trade policies to be scrutinized on day one of his presidency but won’t impose the tariffs.
The memo will direct U.S. federal agencies to evaluate America’s trade policies with Canada and others but won’t implement his threatened 25% tariffs on all Canadian imports.
Canadian leaders braced themselves for the imposition of Trump’s potential tariffs following his inauguration Monday.
The memo is set to direct the U.S. federal agencies to “investigate and remedy” persistent trade deficits and currency policies by other nations. The agencies will have to examine the trade policies and offer Trump recommendations for action.
According to the WSJ, the memo will direct agencies to scrutinize China, Canada and Mexico in particular.
Instead of a day on tariffs, the U.S. agencies will be directed to evaluate the status of the U.S.-Mexico-Canada Agreement (USMCA), which is set for review in 2026.
The article cites a Trump policy adviser who said the memo is an effort by the incoming administration to “lay out a vision” for Trump’s trade plan in “a measured way.”
According to the advisor, the memo provides a blueprint for potential executive action that Trump can take in terms of trade.
Originally, Trump threatened 25% tariffs against all Canadian imports if Canada did not secure its border against drug smuggling and illegal immigration.
After provincial leaders began to mobilize to secure the border in the various provinces while awaiting a federal plan to do so, President Trump changed his rhetoric and said he would use “economic force” in a bid to annex Canada.
Trump will be sworn in at noon in Washington, D.C.
