Alberta Premier Danielle Smith said she was happy to see U.S. President Donald Trump decide not to impose sweeping tariffs on Canada on his first day in office, while Ontario Premier Doug Ford said Canadians must still be prepared for tariffs.
“Alberta is pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further,” Smith said in a statement on Jan. 20.
The Alberta premier said this move implied an acknowledgement that it is a “delicate issue,” and said that avoiding tariffs would save hundreds of thousands of jobs in both countries.
Smith has travelled to Washington for Trump’s inauguration and is meeting with U.S. officials in an effort to avert the tariffs. She previously also flew to Trump’s resort in Florida earlier in January to discuss the issue before Trump was sworn in as president.
After being elected in November, Trump said he would impose 25 percent tariffs on all Canadian and Mexican exports unless the two countries take action on illegal immigration and drug smuggling at their shared borders with the United States. Though Canada has attempted to bolster border security through a $1.3 billion plan to tackle illegal migration and trafficking, Trump had recently reiterated his plans to put “substantial” tariffs on Canada.
Trump, who was sworn in as the 47th president on Jan. 20, didn’t impose tariffs on his first day in office, instead asking the federal agencies to investigate if there are unfair trade practices with any country, and to make recommendations.
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Ford said although Trump didn’t impose the tariffs on his first day, he alluded to them during his inauguration speech, and that is still of great concern.
“It’s a lot worse today than it was yesterday,” Ford said, according to the Toronto Star. “No mistake about it, he’s coming for us.”
During his speech, Trump repeated his plan to create the External Revenue Service, a new federal agency to collect tariffs and revenues from foreign countries, modelled on the Internal Revenue Agency, which collects taxes from Americans.
“He’s creating the department to go after countries on tariffs. This gives more uncertainty,” Ford said.
Prime Minister Justin Trudeau congratulated Trump on becoming president, and said Canada and the United States had the “chance to work together again—to create more jobs and prosperity for both our nations.”
While the Canadian government has not released figures on the impact these tariffs would have, the Canadian Chamber of Commerce has estimated that 25 percent tariffs could shrink Canada’s economy by 2.6 percent and impact 2.3 million Canadian jobs. Ford has also said the tariffs could cost 450,000 to 500,000 jobs in his province alone, while the government of British Columbia has said the tariffs would cost 1124,000 jobs in that province.
On Jan. 20, Ford also said at the Rural Ontario Municipal Association conference he was prepared to remove American alcohol from LCBO stores in response to U.S. tariffs. Ford said the LCBO had been given instructions to “clear off every bit of U.S. alcohol off the shelves” in order to promote alcohol made in the province if the tariffs are put on.
Trudeau has said Canada will “not hesitate to act” in response to U.S. tariffs, and that “everything is on the table” as a response. Trudeau also said on Jan. 17 that Canada needed to respond in the “most appropriate way to demonstrate there are no winners in a trade fight,” as well as support regions or industries hit particularly hard by tariffs.
Foreign Affairs Minister Mélanie Joly suggested the same day that an estimated $150 billion brought in from reciprocal tariffs on the United States would be used to support Canadians.
