The White House said a Friday report that U.S. President Donald Trump was delaying new tariffs on Canada and Mexico by a month is “false,” and said the tariffs are still set to go ahead starting Saturday.
Reuters reported earlier Friday, citing three people “familiar with the planning,” that Trump would announce the long-promised 25 per cent tariffs would begin on March 1 and include a process for Canada and Mexico to seek specific exemptions for certain imports.
“I saw that report and it is false,” White House Press Secretary Karoline Leavitt told reporters when asked about it.
“I was just with the president in the Oval Office, and I can confirm that tomorrow, the Feb. 1 deadline that President Trump put into place in a statement several weeks ago, continues. The president will be implementing tomorrow a 25 per cent tariff on Mexico and 25 per cent tariffs on Canada, and a 10 per cent tariff on China.”
Trump said as much in the Oval Office Thursday evening, adding he would decide by the end of the day if Canadian oil imports to the U.S. would be exempted.
Leavitt wouldn’t say if Trump had made a decision on that front Friday.
“I don’t have an update or readout for you on exemptions, but those tariffs will be for public consumption in about 24 hours, tomorrow, so you can read them then,” she said.
It remains to be seen how Trump will impose the tariffs. The president has several executive authority powers at his disposal, including the declaration of a national emergency to justify managing imports, which is typically a congressional authority.
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An administration official told Reuters in its earlier report that Trump on Friday was reviewing tariff plans, which may allow for some exemptions. Still, any exemptions would be “few and far between,” the official said.
The United States imported almost 4.6 million barrels of oil daily from Canada in October, according to the U.S. Energy Information Administration. U.S. daily production during that month averaged nearly 13.5 million barrels a day.
The import of cheap crude oil from Canada, which many American refineries rely on, helps keep gas prices low and is the main reason for the U.S. trade deficit with Canada that Trump frequently complains about, economists say.
A rise in oil import prices due to tariffs would push American oil companies to source their crude from communist Venezuela, the Canadian government frequently says.
Canadian officials and business groups have been preparing for the prospect of steep tariffs that economists say could trigger a recession, while also pushing the Trump administration and U.S. lawmakers on a diplomatic solution to prevent them altogether.
Multiple ministers were in Washington on Friday to try and reach a deal, pointing to investments they’ve made in border security to combat fentanyl, which Leavitt said was the main reason for the tariffs.
Asked if there were any concessions Canada, Mexico or China could make to avoid the tariffs or get them lifted, Leavitt wouldn’t say.
“At this point, the president has made it very clear those tariffs are going to be implemented and in effect” on Saturday, she said.
“If the president at any time decides to roll back those tariffs, I’ll leave it to him to make that decision, but starting tomorrow those tariffs will be in place.”
Howard Lutnick, Trump’s nominee for U.S. commerce secretary who would oversee trade policy, told U.S. senators this week that Canada and Mexico could avoid the 25 per cent tariffs if they “shut their borders” to fentanyl.
“It’s not a tariff per se, it’s an action of domestic policy,” he said at his confirmation hearing.
Ottawa is looking to strike a joint task force with the U.S. to combat fentanyl, Public Safety Minister David McGuinty said shortly after Lutnick’s comments, which McGuinty and other cabinet officials suggested a way forward in negotiations.
Earlier Friday, Prime Minister Justin Trudeau warned the United States of a “purposeful, forceful but reasonable immediate response” if tariffs are imposed on Canada. That could include retaliatory tariffs or other measures.
“It’s not what we want but if he moves forward, we will also act,” he told reporters before meeting with the newly formed Canada-U.S. relations council in Toronto. “We’re ready for whatever scenario comes forward.”
Leavitt said Trump would respond to Trudeau’s comments “in due time.”
“I think Justin Trudeau would be wise to talk to President Trump directly before pushing outlandish comments like that to the media,” she said.
Economists and business executives have warned that the tariffs would spark major increases in the prices of imports such as aluminum and lumber from Canada, fruits, vegetables, beer and electronics from Mexico and motor vehicles from both countries.
The Bank of Canada said this week that the tariffs on Canada would lead to an inflation hike in the U.S. and an economic downturn in Canada, including lost business investment and jobs.
Leavitt said the minimal economic impacts of tariffs during Trump’s first term should reassure Americans that prices won’t rise this time. But those earlier tariffs were far more selective — targeting Canadian steel and aluminum, for instance — whereas his current policy targets all goods from entire countries.
“The president is intent on ensuring that he effectively implements tariffs while cutting inflation and costs for the American people,” Leavitt said.
—With files from Global’s Saba Aziz, Reuters and the Associated Press
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