Canada can dodge tariffs with swift border action, says Trump’s nominee for commerce secretary

 

Howard Lutnick, U.S. President Donald Trump’s nominee for commerce secretary, speaks during his Senate confirmation hearing in Washington on Jan. 29, 2025.

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U.S. tariffs against Canada could come in two steps, with the first blow coming as early as Saturday if Ottawa can’t show it has shut its borders to illegal immigration and fentanyl smuggling, says Donald Trump’s nominee to oversee the contentious move.

OTTAWA — U.S. tariffs against Canada could be imposed in two steps, with the first blow coming as early as Saturday if Ottawa can’t show it has “shut” its border to illegal immigration and fentanyl smuggling, says Donald Trump’s nominee to oversee the contentious move.

The second blow would come later, after April 1, the deadline for U.S. trade officials to report back to Trump on what the U.S. president views as unfair trade practices by America’s competitors and allies alike, said Howard Lutnick, Trump’s nominee for commerce secretary.

Lutnick, who met with Prime Minister Justin Trudeau in Poland on Monday, suggested during his confirmation hearing in Washington on Wednesday that there may an off-ramp in the short term if the president’s border concerns are addressed.

“The (drug) labs in Canada are run by Mexican cartels so this (immediate) tariff model is simply to shut their borders,” said Lutnick. “So it is not a tariff per se. It is an action of domestic policy. Shut your border and stop allowing fentanyl into our country, killing our people.

“As far as I know, they are acting swiftly, and if they execute it, there will be no tariff. And if they don’t, then there will be,” Lutnick said.

With the immediate prospect of U.S. tariffs looming, and under pressure by provinces, Ottawa is prepared to impose countermeasures against a broader list of American products than it had first planned. Countermeasures against more than $37 billion worth of imports would be the next step, which could ramp up to surcharges on $150 billion worth of American imports, according to officials. 

Sources also said several premiers pressed Trudeau to accelerate defence spending to meet, if not exceed, NATO’s target of two per cent of GDP, and bolster Arctic security.

A federal official said Alberta Premier Danielle Smith went so far as to suggest Canada should offer to allow the U.S. military to operate bases in Canada’s north.

In the long run, Lutnick said, Trump wants to increase America’s penetration into markets around the world. He cited barriers to U.S. dairy products in Canada as a particular irritant, and said Trump aims to bring more investment and manufacturing to America, especially in sectors like semiconductors, auto and artificial intelligence.

Under questioning, Lutnick said his preference is not for “targeted tariffs” against specific sectors or countries, but for broad, across-the-board tariffs against America’s biggest competitors, even if they are some of its closest allies.

“We are treated horribly by the global trading environment,” he said. “They all have higher tariffs, non-tariff trade barriers and subsidies. They treat us poorly. We need to be treated better. We need to be treated with respect, and we can use tariffs to create reciprocity. So fairness and respect.”

https://www.thestar.com/politics/federal/canada-can-dodge-tariffs-with-swift-border-action-says-trumps-nominee-for-commerce-secretary/article_1b2211f2-de6c-11ef-acab-d783c8e482c2.html