Trump’s ‘reciprocal’ tariffs threat brings further uncertainty to Canada

Many unknowns remain on the new policy, which Trump has taken to calling 'Liberation Day' for the U.S., including what rates the tariffs will be and whether they include Canada.

U.S. President Donald Trump’s long-promised “reciprocal” tariffs are set to be unveiled Wednesday, adding further uncertainty to the Canadian economy and global trade with the U.S.

Many unknowns remain on the new policy, which Trump has taken to calling “Liberation Day” for the U.S., including what rates the tariffs will be at and whether Canada could see some relief.

Trump and his administration also appear to have different views on how broad the policy will be. He told reporters aboard Air Force One on Sunday that “all countries” will face the new tariffs — at least at first — after his top economic adviser Kevin Hassett suggested earlier this month they would focus on 10 to 15 countries with the worst trade imbalances.

A new set of tariffs would further rattle Canadian industries that rely on U.S. trade — particularly the auto sector, which is bracing for the return of blanket 25 per cent tariffs on Wednesday and a new 25 per cent levy on foreign-made vehicles and auto parts that begin a day later.

Here’s what we know so far about what Wednesday could bring.

Trump has said he wants to impose import taxes, including “reciprocal” tariffs that would match the rates charged by other countries and account for other subsidies on foreign trade.

His goal, he says, is to drive investment and manufacturing back to the U.S. and make American consumers less reliant on foreign goods.

“We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years,” Trump told reporters in the Oval Office last Wednesday.