Uncertainty still hangs over the Canadian economy despite U.S. President Donald Trump announcing a 30-day pause in tariffs that were to take effect today.
The temporary reprieve halts 鈥� at least for now 鈥� a continental trade war that economists on both sides of the border warned would raise prices.
Trump鈥檚 decision meant Canada and the provinces also halted their moves to retaliate including with tariffs and bans on U.S. alcohol sales north of the border.
Trump on Saturday signed an order to impose 25 per cent across-the-board tariffs on Mexican and Canadian imports, with a lower 10 per cent tariff on Canadian energy.
On Monday, following two phone calls with Prime Minister Justin Trudeau, Trump said the tariffs would be off the table for 30 days to see if the two countries could reach a 鈥渇inal economic deal.鈥�
In his own social media post, Trudeau outlined his government鈥檚 $1.3 billion plan to address Trump鈥檚 stated concerns about border security that Canada unveiled in December.
He also said nearly 10,000 front-line personnel 鈥渁re and will鈥� be protecting Canada鈥檚 border, and announced $200 million in new initiatives to address fentanyl trafficking including a 鈥渇entanyl czar.鈥�
Some of the border measures will be on display today.
Public Safety Minister David McGuinty and Terry Duguid, minister responsible for Prairies Economic Development Canada, will join Manitoba Premier Wab Kinew later this morning at the Emerson port of entry, where they鈥檒l see how the Canada Border Services Agency detects fentanyl and other toxic materials. They鈥檒l also see a Black Hawk helicopter which the RCMP is now using to patrol the U.S. border in the province.
But the tariffs delay is not a long-term comfort for many in Canada鈥檚 labour and business communities.
Unifor, the country鈥檚 largest private sector union, insists that Trump鈥檚 threat of tariffs remains in effect, threatening Canadian jobs. National President Lana Payne calls for Canada to 鈥渦se every single available lever to build a strong, resilient, and diverse economy.鈥�
The Business Council of Canada also notes that 鈥渨ith a 30-day delay, much uncertainty remains.鈥�
President and CEO Goldy Hyder said it remains clear that Canada must 鈥渁ct with urgency to improve our long-term economic prospects.鈥�
Quebec Premier Fran莽ois Legault complained that 鈥渨hat鈥檚 annoying鈥� about dealing with Trump 鈥渋s that there鈥檚 always this sword hanging over our heads.鈥�
He believes the events of the last few days emphasize the importance of diversifying markets and limiting Canadian dependence on American exports.
Canada has spent the last three months on a full-court press in Washington, D.C. and Mar-a-Lago, Trump鈥檚 Florida resort, trying to push its case against tariffs. Despite the pause, that work continues.
Energy and Natural Resources Minister Jonathan Wilkinson will be in Washington today to deliver a speech on the future of energy in North America.
