Ontario braces for potential tariffs as 2nd Trump administration looms
Details could be in executive orders Donald Trump has promised to sign immediately
- Update: U.S. president-elect Donald Trump will not impose his promised tariffs on Canada on his first day in office, according to multiple U.S. reports, giving this country something of a reprieve, at least for now. The story below will be updated to reflect these developments.
With U.S. president-elect Donald Trump's second inauguration only hours away, Ontario is bracing to learn more about promised tariffs that could potentially devastate the province's economy and launch a protracted North American trade war.
Trump has repeatedly threatened to impose a 25 per cent levy on all Canadian goods heading south of the border. Economists and lawmakers have warned the move would ravage multiple key industries across the country and have a measurable impact on Canada's GDP.
In Ontario, a province that does roughly $500 billion in two-way trade with the U.S., Premier Doug Ford has said tariffs could cost up to a half million jobs.
Trump is scheduled to take the oath of office in Washington, D.C., around noon. Shortly after, he's expected to sign more than a hundred executive orders aimed at everything from mass deportations to diversity and inclusion. It's in those executive orders that Canadians could learn specific details about his administration's plan for tariffs.
CBC News will have comprehensive coverage before, during and after the official swearing-in of Trump and vice-president-elect J.D. Vance. Here's how to watch and listen.
Reports in American media have suggested the tariffs could be rolled out in phases, so as to not spike inflation or the price of gasoline. Economists have forecast that a 25 per cent tariff on Canadian oil and gas exported to the U.S. could raise prices at the pumps there by as much as 75 cents per gallon.
For Canada's part, the federal government says it is preparing for an initial round of retaliatory tariffs on some $37 billion of goods that could be expanded depending on the Trump administration's approach.
Ford has spent the last several weeks pitching his idea for "Fortress Am-Can," a renewed economic and security alliance between Canada and the U.S. that would see expanded trade in goods like energy and critical minerals.
"The only thing standing in our way is an unnecessary trade and tariff war started by the U.S. that will only benefit China and Chinese-backed companies by creating the kind of economic uncertainty and conditions for them to continue to rip off American and Canadian workers," Ford said in a statement Sunday.
In speeches and appearances on American cable news programs, Ford has emphasized a "better together" approach, stressing the deep economic and cultural ties between the two countries.
But he's also said he supports retaliatory trade measures if the threatened tariffs are imposed, a move that has led to divisions between Alberta and the rest of the provinces and territories.
"As Premier of Ontario, if President Trump's tariffs make retaliation necessary, I will stand shoulder to shoulder with the rest of Team Canada to fight back using every tool in our toolkit," Ford said in the statement.
"The province is ready to support federal tariffs as part of the country's first line of retaliation. If necessary, we are ready with additional retaliatory measures within provincial jurisdiction that can support escalation over time."
During a speech to the Rural Ontario Municipal Association on Monday, Ford said he has directed the LCBO to clear American products from its shelves if tariffs are implemented.
Ontario also sent a delegation that includes politicians, business leaders and union executives to D.C. for the inauguration with an express mission to push back on the potential tariffs.
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With files from J.P. Tasker