Late yesterday, US President Trump announced a new round of tariffs, dubbed “Liberation Day” tariffs, during a ceremony in the Rose Garden at the White House. These tariffs are part of his ongoing “America First Trade Policy” that aims to address perceived trade imbalances and protect U.S. industries.
The key points from the announcement include:
- 25% tariffs on imported automobiles and auto parts: This includes Canadian-made passenger vehicles, but the tariff will only apply to the value of non-U.S. content in those vehicles; and
- 10% baseline tariff on all goods entering the US: While this applies to many countries, Canada is exempt from this additional baseline tariff due to previously announced tariffs.
Those other tariffs on Canada implemented by the US over the past few weeks are:
- March 4: 25% tariff on $30 billion worth of U.S.-origin goods
- March 6: 10% tariff on energy or energy resources and 25% tariff on potash not entered duty-free under the USMCA
- March 7: 10% tariff on dairy products and lumber
- March 13: 25% ad valorem tariffs on $29.8 billion CDN worth of U.S.-origin goods
These tariffs have already taken effect and are part of broader trade policy changes and subject to ongoing negotiations between the two countries. Canada has responded with its own set of retaliatory tariffs on U.S. goods.
Implications for Canada
Prime Minister Mark Carney expressed concern over the new tariffs, particularly those on the auto sector, and has warned that more tariffs could still be imposed on other strategic sectors such as pharmaceuticals, lumber, and semiconductors. The Canadian government is preparing to respond to these measures and is considering various options to mitigate their impact on the Canadian economy.
All of President Donald Trump’s tariffs, including a 25% tariff on imported automobiles and auto parts, has significant implications for the ongoing Canadian election campaign.
The tariffs have heightened economic concerns among Canadian voters, making trade policy a central issue in the election. Voters are looking for leaders who can effectively navigate the trade tensions with the U.S. and protect Canadian jobs.
The tariffs have also fueled a sense of nationalism, with many Canadians boycotting American products and canceling travel to the U.S. This sentiment could influence voter behavior, favoring candidates and party leaders who are perceived as strong defenders of Canadian interests.
Liberal leader, Mark Carney’s strong stance against the tariffs and his efforts to present himself as a unifying leader may boost his support among voters who prioritize economic stability and national sovereignty.
The tariff issue could pose significant challenges for Pierre Poilievre and the Conservatives, especially if voters perceive their response to the tariffs as insufficiently robust and their ongoing strategy to attack the Liberal record on affordability and other issues as failing to address the ballot box question of Trump’s tariffs and how Canada responds.
For NDP leader Jagmeet Singh, his party’s focus on social services and worker protection could resonate with voters who feel left behind by the economic impacts of the tariffs. His campaign may gain traction among those seeking more proactive government support and equitable economic policies, although there is no sign of any momentum as the NDP’s popular support continues to bleed to Carney and the Liberals.
We’re Here to Help
For more information and insights about what these developments mean for Canada’s political landscape, please contact:
Tom Lukiwski – Senior Strategy Advisor
tom@prairieskystrategy.ca
306.501.7933
Paul Merriman – Senior Counsel
paul@prairieskystrategy.ca
306.281.2987
Jeff Sterzuk – President
jeff@prairieskystrategy.ca
403.612.1724
Richard Truscott – Vice-President
richard@prairieskystrategy.ca
403.998.0494
To learn more about Prairie Sky Strategy, please visit our website.
