U.S. President Donald Trump rolled out his plan to increase reciprocal tariffs to match tax rates that other countries charge on imports.
The proclamation, unveiled on Thursday, could have wide-reaching implications on global trade with the United States' economic allies and rivals.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said in the Oval Office at the proclamation signing. “It’s fair to all. No other country can complain.”
Here’s what happened:
5:20 p.m. EST: Manitoba Premier stresses long-term goal
Manitoba Premier Wab Kinew says a trip by Canada’s premiers to Washington, D.C., has been a success even though there’s no sign of a change in American plans to impose steep tariffs on Canadian goods.
Kinew met with many people during the two-day trip, including U.S. Secretary of the Interior Doug Burgum, a former North Dakota governor.
Kinew says Burgum is very familiar with Manitoba and Canadian issues, and his new position means that Manitoba has an “in” in the administration of U.S. President Donald Trump.
Kinew says he and some colleagues also bumped into and talked briefly with Elon Musk, the billionaire Tesla CEO who is a top Trump adviser.
The Canadian Press
3:20 p.m. EST: Canada needs to spend more on defence, or become a state, Trump says
“Canada is … just about the lowest payer in NATO in addition to everything else,” said Trump.
Canada has, for years, fallen short of NATO target spending, which is two per cent of a member country’s GDP. Ottawa has previously vowed to reach that goal by 2032. The Parliamentary Budget Officer estimated Canada would spend just 1.37 per cent in 2024.
“If they had to pay just something modestly fair they would be able to succeed as a country,” said Trump. “And that’s why I feel that they have to become a state.”
3:05 p.m. EST Canada going to be an ‘interesting situation’: Trump
Trump in a press conference told reporters that “Canada’s been very bad to us on trade.”
“Canada is going to be a very interesting situation because we just don’t need their products, and yet they survive off the fact that we do 95 per cent of what they do,” he added.
Trump reiterated that Canada’s taxes would be greatly reduced and security would be improved if it became a U.S. state.
“Why would we pay US$200 billion a year in subsidies to Canada if they’re not a state? You do that for a state but you don’t do that for somebody else’s country,” he said.
The president has repeated the US$200 billion figure several times, but it’s unclear what it refers to. Last year’s trade deficit is estimated at around US$45 billion.
He added that Canada is a “serious contender to be our 51st state.”A reporter asked about the delay in implementing the tariffs, and Trump said he spoke to “governor Trudeau on numerous occasions and we’ll see what happens.”
2:30 p.m. EST: Trump calls out Canada’s defence spending
Trump repeated his criticism of Canada’s defence spending, saying Ottawa was not paying enough, and that Canada did not have enough military protection.
Reuters
2:20 p.m. EST: Tariffs to be specific to each country
The tariff increases would be customized for each country with the partial goal of starting trade new negotiations. But other nations might also feel the need to respond with their own tariff increases on American goods. As a result, Trump may need to find ways of assuring consumers and businesses that growth to counteract any uncertainty from the possible fallouts from his tariffs.
Trump’s proclamation identifies value added taxes — which are similar to sales taxes and common in the European Union — as a trade barrier to be included in any reciprocal tariff calculations, according to a senior White House official who insisted on anonymity to preview the details on a call with reporters.
Other nation’s tariff rates, subsidies to industries, regulations and possible undervaluing of currencies would be among the factors the Trump administration would use to assess tariffs.
The Associated Press
2 p.m. EST: Trump’s roadmap
U.S. President Donald Trump unveiled a roadmap on Thursday for charging reciprocal tariffs on every country that charges duties on U.S. imports, his latest trade salvo directed at American friends and foes that the White House says will strengthen economic and national security.
The tariffs were not going into effect on Thursday but could begin to be imposed within weeks as Trump’s trade and economic team study bilateral tariff and trade relationships, a White House official told reporters on a conference call.
The administration would examine what it called the most “egregious” issues first, including countries with the biggest trade surpluses and highest tariff rates.
Trump’s reciprocal tariffs would match the higher duty rates charged by other countries, the White House official said. They also would aim to counteract non-tariff trade barriers such as burdensome regulations, value-added taxes, government subsidies and exchange rate policies that can erect barriers to the flow of U.S. products to foreign markets.
The effort also aims to launch negotiations with some countries to reduce these barriers.
The announcement appeared designed at least in part to trigger talks with other countries. The official said Trump would be more than happy to lower tariffs if other nations lowered theirs.
Reuters
1 p.m. EST: Carney says leave ‘real-time negotiations’ to the ministers
The trade war has been top of mind for Canadian politicians for months, including those running to lead the Liberal party, many of whom have repeatedly weighed in on the issue during the campaign. One such person is Mark Carney, the former Bank of Canada head.
During a platform announcement in Vancouver, he faced a question on whether candidates should be “armchair quarterbacking” negotiations with Trump.
“I’m careful in what I say … my focus has majored on what we can do here in Canada to strengthen our economy irrespective of what the Americans take,” he responded. As for the “real-time negotiations,” he added, “leave that to the current prime minister and ministers of the Crown.”
12:25 p.m. EST: U.S. gets new agriculture secretary
Conservative lawyer Brooke Rollins has been confirmed as U.S. secretary of agriculture, making her a key player in any trade dispute with Canada.
Canada is a world leader in the production of potash – a key ingredient in fertilizers. Statistics Canada data shows the U.S. imported $4.9 billion in potash in 2023.
Earlier this month, the American Fertilizer Institute urged Trump to exempt Canadian potash and other fertilizers from his tariffs.
“We approach the critical time of spring planting where nutrient delivery and application are essential for the harvests that fill American’s dinner tables with abundant and affordable food,” read a statement from the institute.
“The U.S. relies on imports for over 95% of its potash fertilizer needs, with nearly 90% of that coming from Canada.”
11:30 a.m. EST: Canadians willing to cut U.S. purchases, but not big streamers
A new poll suggests many Canadians are willing to use their spending power to protest U.S. President Donald Trump’s tariff threats and attacks on Canadian sovereignty — but not if it means they have to kick their Netflix and Disney+ addictions.
A Leger survey that polled 1,590 Canadians between Feb. 7 and Feb. 10, 2025 suggests an overwhelming majority of Canadians — 81 per cent — have significantly increased how many Canadian-made products they buy, or will do so soon.
But only 28 per cent of Canadians told the pollster they have or will be cancelling their subscriptions to U.S. streaming services, compared with 34 per cent who say they will not be cancelling them.
About one in three people polled also said they are unwilling to stop making online purchases from U.S.-based companies.
The Canadian Press
11 a.m. EST: Freeland pens warning in NYT
Former finance minster and Liberal leadership hopeful Chrystia Freeland has a warning against tariffs on Canadian imports in the New York Times today.
She called 25 per cent tariffs – as Trump has promised if Canada doesn’t live up to his hopes on the border and trade – an act of “economic self-mutilation.”
“America First need not mean America Alone. Indeed, the great rebalancing of the global economy that President Trump seeks can be accomplished best in cooperation with America’s traditional allies,” wrote Freeland.
“But if America, which controls approximately 25 percent of the global economy, pursues a punishing trade war with Canada and its other allies, all of us will have no choice but to seek other friends, wherever we can find them.”
10 a.m. EST: Small nations likely to bear the brunt
Tariffs are a key part of Trump’s plan to raise revenue to pay for the extension of his 2017 tax cut on top of other promised tax cuts. But the burden of tariffs could ultimately fall on American consumers, economists say. Taxed importers pass the costs on to retailers, which then raise prices for consumers.
The tariffs are likely to hit developing countries hardest, especially India, Brazil, Vietnam and other Southeast Asian and African nations, given they have some of the widest differences in tariff rates charged on U.S. goods brought into their countries compared to what the U.S. charges them.
For instance, in 2022, the U.S. average tariff rate on imports from India was three per cent, whereas India’s average tariff rate on imports from the U.S. was 9.5 per cent, according to World Bank data.
CNN
