(NewsNation) — Despite President Donald Trump placing a pause on Mexican tariffs, Canada is going to feel the brunt of tariffs unless a deal can be struck before midnight tonight.
Trump will speak with Prime Minister Justin Trudeau today ahead of 25% tariffs on Canadian goods entering the United States.
Should the tariffs go ahead as planned, several everyday items are set to be affected, including maple syrup and gas.
Trump announces pause on Mexico tariffs after striking deal
More than 60% of Canada’s production is exported to the U.S., and 60% of the oil that the US imports comes from Canada, which could mean prices go up at the pump, 30 to possibly 70 cents a gallon.
Trump has been very clear that he intends to continue to use his strategy of tariffs to try and broker the kind of deals that he’s looking for on some of these issues, particularly immigration.
The White House is very confident in that strategy because 77% of exports from Mexico go to the United States. For Canada, 75% of its exports come to the U.S. The U.S. relies on the Mexican and Canadian markets but to a much lower percentage (Mexico, 11% and Canada, 12%).
Nevertheless, the President has acknowledged that there could be some pain that some consumers would be feeling if these tariffs do come to fruition.
The Tax Foundation estimates that the tariffs, if implemented on paper as they are right now, would shrink economic output by 0.4% and increase taxes by $1.2 trillion from 2025 to 2034 which would come to about $830 in taxes per US household in 2025.
Canadian provinces ban US alcohol in retaliation for tariffs
As things stand, Canada has said that they’re prepared to institute retaliatory tariffs against the U.S., and the U.S. has not given an indication they will be lifting the tariffs they have handed down for the Canadians.
Following Trump’s criticism of the European Union and the threat of tariffs against the body, European leaders have rebuked it and called for unity.
“I think that we have to do everything to avoid this totally unnecessary and stupid tariff wars or trade wars,” Polish Prime Minister Donald Tusk told reporters on Monday.
Lithuanian President Gitanas Nauseda said: “First of all, we have to should stay united. No matter (if we are) talking about economic tariffs, we are talking about Greenland or other issues, we have to stay united.”
