UPDATED: U.S. tariffs delayed, as industry urges governments to find solution

After two conversations between U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau, the U.S. has agreed to delay the 25 per cent tariffs on Canadian goods for at least 30 days.

Trudeau posted on social media after the conversation, saying, “I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border. In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.”

Several segments of the Canadian supply chain where sounding the alarm over the U.S. following through with the tariffs on Canadian goods crossing the southern border.

The Canadian Trucking Alliance (CTA) released a statement urging the Canadian government and provincial premiers to meet with U.S. officials to bring an immediate end to what it called an “unwarranted trade conflict.”

“This has gotten out of hand,” said CTA president Stephen Laskowski. “The reality is the tariffs are unreasonable and are out of proportion to the problem. The tariffs are like taking a sledgehammer to crack a nut.

“We support team Canada and our provincial and territorial governments, along with business, labour and other leaders that have been working vigorously on a robust response. But the reality is the Americans clearly believe we are not doing enough to address their concerns. We therefore need Ottawa and Washington to come together to find common solutions to this specific challenge rather than bringing economic chaos to both countries.”

U.S. President Donald Trump announced Saturday (Feb. 1) he would move forward with the 25 per cent tariff on Canadian goods, with the exception of oil and gas, which was to have a 10 per cent tariff imposed. Trump has continued to say the reason for the tariffs is to force Canada—and Mexico, which will also see a 25 per cent tariff on goods entering the U.S.—to secure its border and stop the flow of fentanyl and illegal immigration into the U.S. Trump also claims the U.S. has been the victim of unfair trade policies and has been “subsidizing” Canada for several years.

“Parliament is where the business of government functions, and so it’s imperative it is restarted as we face this crisis,” said Laskowski. “As a nation, we must support team Canada to withstand these unfair tariffs while also sending a strong message to the Americans that we are ready at the highest levels to work together.”

The Canadian Steel Producers Association (CSPA) also voiced concern over the tariffs.

“The North American steel industry is highly integrated across the Canadian and U.S. border. With $20 billion in annual steel trade between our nations, these tariffs will cause significant disruption and economic hardship in both Canada and the United States,” said Catherine Cobden, president and CEO of CSPA. “Disruptions that will have negative effects on businesses, workers and their families.

“We are also concerned that the tremendous effort Canada has taken to safeguard the North American marketplace from unfair steel trade has gone unnoticed. From the enactment of melted and poured requirements to the levelling of tariffs on a wide array of Chinese steel products, Canada has demonstrated to the United States its alignment with a tough stance against industrial overcapacity along with our country’s intention of being the best partner of the United States to defend against unfair practices.”

The Mining Association of Canada (MAC) said both sides need to come together to find a solution.

“The partnership on critical minerals between Canada and the U.S. began in earnest with the development of the Joint Action Plan on Critical Minerals Collaboration in 2020 under President Trump,” said Pierre Gratton, president and CEO of MAC. “In lieu of tariffs, Canada and the U.S. should be focusing on how to deepen this collaboration. The minerals and metals industry in Canada stands ready to strengthen our relationship with the United States, ensuring the free flow of these essential resources that drive economic growth, defence capabilities and technological advancement on both sides of the border.”

Reports from Feb. 2 indicated that Canadian Prime Minister Justin Trudeau would be speaking with Trump Monday (Feb. 3) morning about the tariffs. In response to the U.S. tariffs, Trudeau announced Canada would impose retaliatory tariffs of its own starting Feb. 4. For a complete list of the products imported from the U.S. that will see the 25 per cent tariff, visit here.