Trump says he'll hit Canadian goods with 25% tariff next week after month-long pause

U.S. President Donald Trump said Monday he will go forward with a 25 per cent tariff on most imports from Canada next week, saying the country has ripped off the U.S. for too long and it's time to put a stop to it.

Speaking to reporters at a White House news conference with the French president, Trump said work to implement those tariffs is "moving along very rapidly."

"The tariffs are going forward on time, on schedule. This is an abuse that took place for many, many years. The tariffs will go forward, yes, and we're going to make up a lot of territory," Trump said.

Earlier this month, Trump threatened to levy a devastating 25 per cent tariff on Canadian goods — except energy, which would be levied at 10 per cent — going so far as to draw up an executive order to implement the regime.

Trump ultimately pulled back after Prime Minister Justin Trudeau agreed to deploy more resources at the border to tamp down on drugs and migrants crossing into the U.S.

Now, Trump signalled that the pause will be lifted around March 4 as planned despite meaningful improvement at the border with the number of migrants apprehended and the quantity of drugs seized plummeting.

"Our country will be extremely liquid and rich again," Trump said.

Speaking to reporters from London after meeting with British officials, Foreign Affairs Minister Mélanie Joly said Canada will hit back at the U.S. if Trump moves ahead with the tariffs.

She said the federal government crafted a plan to slap retaliatory tariffs on up to $155 billion worth of American goods when Trump launched the first salvo in this trade war, and Ottawa can bring that list back if he makes good on his threat.

"We need to stand strong and send a clear message that Canadians will fight back," Joly said.

"The threat of tariffs is a real one and may continue for a while," she said. "We need to be able to deal with the unpredictability of President Trump." 

Economists and experts have said tariffs that high have the potential to plunge the Canadian economy into a recession and lead to severe economic disruption for industries across the country.

The tariff will make some Canadian goods less competitive because American importers will have to pay the 25 per cent levy to bring them into the U.S. if Trump's plan goes into effect.

Those added costs could then be passed on to American consumers, pushing up the price of everything from car parts and fertilizer to pharmaceuticals and paper products.