Canada Stands Its Ground: Tariffs Stay In Place Despite Trump’s One-Month Delay on Imports

In a significant escalation of trade tensions, at least one Canadian province is set to increase electricity prices for U.S. customers. This move, attributed to ongoing trade hostilities, raises concerns about rising costs for consumers.

According to two senior officials in the Canadian government, retaliatory tariffs against the U.S. will remain effective despite President Trump’s recent decision to postpone 25% tariffs on several imports from Canada for a month. The officials, who requested anonymity, stated that Canada’s initial response is firm.

Canada has enacted approximately CAD $30 billion (USD $21 billion) in tariffs on various American products, including orange juice, peanut butter, and motorcycles. Additional tariffs initially planned were set to target electric vehicles, produce, and more.

Ontario Premier Doug Ford announced that starting Monday, the province will impose a 25% surcharge on electricity exported to 1.5 million Americans in states such as Minnesota, New York, and Michigan. He emphasized that this tariff would persist as long as there are threats from the U.S. administration.

“The only thing that’s certain today is more uncertainty. A pause on some tariffs means nothing. Until President Trump removes the threat of tariffs for good, we will be relentless,” Ford stated on social media platform X.

Meanwhile, British Columbia Premier David Eby indicated that his province intends to introduce new legislation allowing it to charge fees on U.S. commercial trucks passing through Canada en route to Alaska. Eby asserted that Canadians will persist in their demands for removal of tariffs.

Prime Minister Justin Trudeau expressed concern that a trade war with the U.S. is likely to continue into the foreseeable future. He described a recent call with Trump as “colorful but constructive,” despite reports of raised voices and profanity during the exchange, particularly regarding Canada’s dairy protections.

In Trump’s recent tariff orders, imports from Mexico and Canada complying with the USMCA trade pact are exempt for one month. However, about 62% of Canadian imports could still face tariffs since they are not compliant with this agreement.

This escalation comes after Trump imposed tariffs on major trading partners, leading to immediate repercussions from Canada, Mexico, and China. Financial markets responded negatively in anticipation of a broader trade conflict.

Despite rhetoric asserting that the U.S. does not need Canada, a significant portion of American energy relies on Canadian resources. Approximately 25% of U.S. oil consumption originates from Canada, which also supplies 60% of crude oil imports necessary for U.S. needs.

Trade relations remain complex, with Canada ranking as the largest foreign supplier of key materials to the U.S., including steel and aluminum. Each day, CAD $3.6 billion (USD $2.7 billion) worth of goods and services move across the border.