U.S. President Donald Trump’s long-threatened tariffs on Canadian exports will be going into effect at midnight.
The president told reporters Monday that there was “no room left” for a deal and that the tariffs were imminent.
Canada’s energy exports to the United States will be hit with a lower 10 per cent tariff.
The tariffs are also being applied to Mexico, while China will receive an additional 10% increase on its goods taking its tariff rate to 20 per cent.
The US-Canada trade relationship accounted for $761.1 billion overall in 2024, including $412.7 billion of Canadian exports to the US.
Trump continues to cite the flow of illegal fentanyl into the United States regarding tariffs. Both countries have stepped up in attempting to deal with both drug trafficking and illegal border crossing.
Prime Minister Justin Trudeau announced Feb. 3 that Canada would be ramping up border security with a $1.3 billion package consisting of 10,000 frontline personnel, helicopters, technology, and the appointment of a fentanyl czar.
One week later, Trudeau appointed his deputy national security advisor and former senior RCMP officer Kevin Brosseau to the position.
These measures bought Canada a reprieve from the original round of tariffs, which were set to be imposed Feb. 4.
Trump denied that Canada or Mexico could do anything to escape tariffs this time around.
“”No room left for Mexico or for Canada,” he said. “No, the tariffs are all set. They go into effect tomorrow.”
Canadian Energy Minister Jonathan Wilkinson estimated that car prices in the U.S. would rise by at least $2,000 due to these tariffs.
U.S. Commerce Secretary Howard Lutnick said Sunday that the tariff rates could go below the 25% mark depending on how bilateral negotiations go with both Canada and Mexico.
Speaking to Fox News, Peter Navarro, the White House senior counselor on trade, reaffirmed that these tariffs are all linked to the fentanyl problem.
