The United States is preparing to give Canada a specific tariff rate on April 2, and then give the country the opportunity to avoid the levies by lowering its own tariffs or addressing the administration’s concerns, according to U.S. Treasury Secretary Scott Bessent.
During an interview with Fox News on March 18, Bessent said each nation will be given its own tariff rate, which could be “quite low” or “quite high” depending on the country and its trade practices.
“We are going to go to them and say, ‘Look, here’s where we think the tariff levels are, non-tariff barriers, currency manipulation, unfair funding, labour suppression, and if you will stop this, we will not put up the tariff wall,’” he said.
April 2 is the date U.S. President Donald Trump has planned to implement reciprocal tariffs on all countries, meaning any tariffs they apply to the United States will be applied back. Bessent said some countries have already reached out to Trump and offered to lower their tariffs ahead of the date.
“So I’m optimistic that April 2, some of the tariffs may not have to go on because a deal is pre-negotiated, or that once countries receive the reciprocal tariff number, that right after that, they will come to us and want to negotiate it down,” Bessent said.
Trump placed 25 percent tariffs on Canada and Mexico on March 4, but soon after announced a one-month tariff pause on all products compliant with the United States-Mexico-Canada Agreement. Around 50 percent of American imports from Mexico are covered by the trade agreement, while 38 percent of Canadian goods are covered, according to the White House.
Related Stories
Trump also imposed 25 percent tariffs on all imports of steel and aluminum, including from Canada, on March 12. The Trump administration has said that reciprocal tariffs coming on April 2 will stack upon already implemented tariffs.
After Ontario Premier Doug Ford announced on March 10 that he would be applying a 25 percent surcharge on electricity exports to three American states, Trump threatened to double tariffs on Canadian steel and aluminum to 50 percent. Ford suspended the surcharge a day after following a call with U.S. Commerce Secretary Howard Lutnick, and Trump in response kept the steel and aluminum tariffs at 25 percent.
Following a meeting with U.S. trade representatives on March 13, Ford said his talk with Lutnick was “extremely productive” and that it was the “best meeting I’ve ever had coming down here.”
Ontario’s representative in Washington David Paterson said they have a better understanding of what the United States is trying to accomplish through tariffs. Paterson said the tariffs are being used as an income stream to alleviate the country’s US$1.83 trillion deficit.
Paterson said while Trump intends to impose sector-by-sector tariffs on April 2, countries that “get along with [the United States] the best, that are allies, that are able to help us grow our economy, will be first in line” for tariff adjustments.
