Trump’s team indicates he won’t hit Canada with tariffs on his first day in office

OTTAWA — U.S. President Donald Trump’s team is indicating he won’t hit Canada with damaging tariffs on his inauguration day.

Shortly before Trump was sworn into office Monday, an incoming White House official who insisted on anonymity pointed reporters to a Wall Street Journal report that said instead of tariffs Trump will instead sign an executive order launching an investigation into alleged unfair trade and currency practices by Canada, Mexico and China.

In November, Trump threatened to hit Canada with steep 25 per cent across-the-board tariffs in an executive order on his first day back in office.

Prime Minister Justin Trudeau has repeatedly said Canada is ready to respond with countermeasures if Trump makes good on that threat.

Two federal government sources who were not authorized to speak publicly about details of the federal tariff plan say the government is waiting to see what happens Monday before revealing its response.

The federal government also promised to pump $1.3 billion in new resources into border security over the next six years in the hopes of convincing Trump not to impose tariffs.

Trump initially tied the tariffs to concerns about border security but later seemed more concerned with the trade imbalance between Canada and the U.S.

As Trump begins his second term as president, federal cabinet ministers are gathering in Montebello, Que., Monday and Tuesday to discuss the tariff threat.

Prime Minister Justin Trudeau also met with the country’s 13 premiers last Wednesday to discuss possible retaliatory actions. At the end of those meetings, he and 12 premiers released a statement pledging to present a united front to their American counterparts.

Alberta Premier Danielle Smith opted out, saying she could not support any retaliation plan that included oil and gas.

Ontario Premier Doug Ford said Monday the tariff threat still needs to be taken seriously, despite the reports suggesting Trump will hold off.

“He’s just adding more uncertainty, (saying) ‘I may not do it today, I’ll do it tomorrow. Maybe I’ll do it in a month.’ That doesn’t help,” Ford said, according to a CityNews report. “So we’re going to take him serious.”

Broad tariffs were among one of Trump’s campaign tariffs but a new poll suggests there is limited support for them among Americans.

An Associated Press-NORC Center for Public Affairs Research survey found almost half of U.S. adults oppose imposing tariffs on all goods brought into the U.S. from other countries — more than were in favour or were neutral on the question.

— With files from The Associated Press

This report by The Canadian Press was first published Jan. 20, 2025.

Kyle Duggan and Anja Karadeglija, The Canadian Press