Ontario Premier Doug Ford expressed confidence that Canada would remove its tariffs on U.S. goods if President Donald Trump ends his trade war.
Speaking with CNBC’s Ross Sorkin on Wednesday morning, Ford responded to a question about Canada’s $60 billion in retaliatory tariffs on American imports, suggesting that the ball is in Trump’s court.
Ford is currently the chair of Canada’s Council of the Federation of premiers and has participated in bilateral discussions with U.S. officials in the past. However, it should be noted that the tariffs placed on some U.S. goods are ultimately the responsibility of the federal government.
“We’d be willing to take those off tomorrow, if he took all the tariffs off. We are not the problem,” Ford said.
Last month, the U.S. introduced a global 25 per cent tax on all steel and aluminum imports. Before that, Trump imposed a blanket 25 per cent tariff on all goods from Canada and Mexico, but later exempted items that are compliant under the North American free trade pact, although that exemption is set to expire on Wednesday.
Prime Minister Mark Carney has not yet revealed how exactly Canada will respond to Trump’s incoming “reciprocal” tariffs that are set to be announced at 4 p.m. The federal government has previously said it is prepared to move forward with tariffs on a total $155 billion worth of U.S. goods.
For Ontario’s part, the province has unleashed a number of retaliatory measures, including removing all American-made alcohol from LCBO shelves, banning U.S. companies from government procurement, and imposing, and then rescinding, a 25 tax on electricity sent south of the border.
In addition to the reciprocal tariffs expected to be announced later today, Trump has also placed a 25 per cent tax on all imported automobiles, which will start being collected Thursday. However, Ford has indicated that, following a conversation with U.S. Commerce Secretary Howard Lutnick last week, any car manufactured in Ontario that is made up of at least 50 per cent U.S. parts would not be subject to the duty.
Meanwhile, it looks like Mexico is backing down, too. According to Reuters, Mexican President Claudia Sheinbaum stated on Wednesday that Mexico has no plans to impose retaliatory tariffs on the United States just ahead of President Donald Trump’s expected tariff announcement.
Sheinbaum said at her daily morning press conference that Mexico will on Thursday "announce a comprehensive program, not a tit-for-tat on tariffs."
"Let's see what announcement they make, but we have a plan to strengthen the economy under any circumstance," Sheinbaum added.
Trump's tariff announcement is scheduled for 4 p.m. ET (2000 GMT).
Sheinbaum has so far spoken carefully about the possibility of retaliatory tariffs against the U.S., not ruling them out entirely but calling for calm and saying the focus must be on protecting the Mexican economy.
The leader, who enjoys approval ratings over 80%, has won plaudits for her handling of Trump and has steered clear of the war-of-words approach taken by Canadian leaders.
But economists have no doubt that substantial U.S. tariffs could hurt the Mexican economy, broadly predicting a recession if they are kept in place for an extended period.
I'm telling ya, Trump knows what he's doing.
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