President Donald Trump said Friday that he is considering imposing reciprocal tariffs on Canadian lumber and dairy products, citing what he called unfair trade practices.
Speaking from the Oval Office, Trump accused Canada of taking advantage of American farmers through high tariffs on dairy imports.
“Canada has been ripping us off for years on tariffs for lumber and for dairy products. 250% — nobody ever talks about that — 250% tariff — which is taking advantage of our farmers. So that’s not going to happen anymore,” Trump said.
He added that the US could introduce tariffs as soon as Friday or early next week. “They’ll be met with the exact same tariff unless they drop it, and that’s what reciprocal means,” he said.
Escalating trade tensions
Trump’s remarks come at the end of a volatile week in trade policy.
Earlier, he imposed 25% tariffs on Mexico and Canada while also doubling levies on Chinese imports to 20%.
On Thursday, he signed executive actions delaying tariffs for nearly one month on all products from Mexico and Canada covered under the USMCA free trade treaty.
The decision followed discussions between Trump and Mexican President Claudia Sheinbaum, as well as negotiations between Canadian officials and the Trump administration.
Although tariffs on Mexican and Canadian goods covered under the USMCA trade agreement have been delayed until April 2, uncertainty remains over the administration’s broader trade strategy.
The US is preparing a set percentage for each country based on existing trade barriers and tariffs on American imports.
Trump’s comments Friday indicated a particular focus on Canadian dairy and lumber, and sector-specific tariffs on metals are expected next week.
Trump defends tariffs
Trump defended his trade policies, claiming they have bolstered US manufacturing, particularly in the auto sector.
“We’ve not only stopped that manufacturing collapse, but we’ve begun to rapidly reverse it and get major gains,” he said, citing the creation of nearly 9,000 auto production jobs.
However, auto industry leaders have expressed concerns about supply chain disruptions from tariffs, especially given the deep integration of North American manufacturing under the USMCA. Some auto-related tariffs were among those delayed until April.
The policy uncertainty weighed on markets, with the Nasdaq 100 Index falling into correction territory on Friday, down more than 10% from its recent high.
Trump, who has previously pointed to the stock market as a sign of his administration’s success, downplayed the decline after markets slumped in response to his tariff plans.
Earlier in the day, Federal Reserve Chairman Jerome Powell said Friday that the central bank is in no rush to adjust interest rates, emphasizing that policymakers will wait to assess the impact of President Donald Trump’s economic policies before making any moves.
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