Released March 11, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Trade pressure on the United States will continue until the government there treats Canada with respect, Canada's newly-minted prime minister said.
Former Bank of England and Bank of Canada Governor Mark Carney emerged the winner in a bid to replace Justin Trudeau as the next prime minister of Canada. Trudeau in January opted to stand down after his deputy, Chrystia Freeland, resigned over disputes on how to handle the U.S. tariff threat.
Reconfiguring the North American Free Trade Agreement as the Agreement between the United States of America, the United Mexican States and Canada during an inaugural term in office that ended in 2021, U.S. President Donald Trump has pressed for steep tariffs on his North American trading partners in his second term.
Ostensibly to control the flow of migrants and illicit drugs, Trump balked initially on imposing a 25% tariff, a tax on imports, while Canada and Mexico mulled their response. Opting for a 10% tariff on Canadian energy because of interdependencies with the U.S., the White House delayed the tariffs again last week.
Products spared last week include construction materials such as lumber.
Carney, during his victory speech Sunday, said the federal government would nevertheless maintain a stiff posture.
"The Canadian government is rightly retaliating with our own tariffs," he said. "My government will keep our tariffs on until the Americans show us respect--and make credible, reliable commitments to free and fair trade."
Canada last week responded to Trump's tariffs by including 25% tariffs against $155 billion of American goods.
Trump during talks with Trudeau called the prime minister "governor" after suggesting Canada should become part of the U.S. Canadian leaders vowed for a tough response to Trump, with many provinces pulling U.S.-made alcohol from the shelves. Ontario Premier Doug Ford has imposed a tariff on electricity sent across the border.
On Monday, Ford doubled down on his tariff promise by imposing a 25% surcharge on electricity delivered to Michigan, Minnesota and New York. Ford said he was reluctant to inflict pain on U.S. consumers, but stressed the Canadian government was serious about its response.
"The Ontario government, through the Minister of Energy and Electrification, retains the ability to increase or decrease the surcharge at any time in response to the actions of the U.S. administration," Ford's office said Monday. "The government has also indicated its willingness to shut off electricity exports to the United States entirely in response to U.S. escalation."
Ford's announcement impacts about 1.5 million U.S. consumers, though the impact of a spot market means there will be other choices apart from Canada.
Elsewhere, Canada and Mexico also represent the top two crude oil exporters to the U.S., with Canada accounting for the bulk of that at 60%, or around 4 million barrels per day.
Midstream infrastructure and manufacturing supply chains are highly integrated as well, with automobiles crossing North American borders several times before completion. Much of the U.S. refining sector, meanwhile, is tooled to process the heavier type of oil found in Canada, not the light, sweet oil found in U.S. shale basins. The U.S. is also a net importer of natural gas from Canada, to the tune of about 5.5 billion cubic feet per day.
Trump vowed to impose a "reciprocal tariff" on Canadian goods starting in April. While tariffs are an import tax that will likely be paid by the consumer, investment bank ING said Canada would feel the brunt of the economic pain.
"Even without a flat 25% tariff, Canadian goods are being selectively targeted by the U.S., and once the 'reciprocal tariff' phase kicks off in April, Canada should be disproportionately affected due to its high export volumes to the U.S.," a Monday note from ING read.
Canada's central bank makes a decision on interest rates on Wednesday.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Former Bank of England and Bank of Canada Governor Mark Carney emerged the winner in a bid to replace Justin Trudeau as the next prime minister of Canada. Trudeau in January opted to stand down after his deputy, Chrystia Freeland, resigned over disputes on how to handle the U.S. tariff threat.
Reconfiguring the North American Free Trade Agreement as the Agreement between the United States of America, the United Mexican States and Canada during an inaugural term in office that ended in 2021, U.S. President Donald Trump has pressed for steep tariffs on his North American trading partners in his second term.
Ostensibly to control the flow of migrants and illicit drugs, Trump balked initially on imposing a 25% tariff, a tax on imports, while Canada and Mexico mulled their response. Opting for a 10% tariff on Canadian energy because of interdependencies with the U.S., the White House delayed the tariffs again last week.
Products spared last week include construction materials such as lumber.
Carney, during his victory speech Sunday, said the federal government would nevertheless maintain a stiff posture.
"The Canadian government is rightly retaliating with our own tariffs," he said. "My government will keep our tariffs on until the Americans show us respect--and make credible, reliable commitments to free and fair trade."
Canada last week responded to Trump's tariffs by including 25% tariffs against $155 billion of American goods.
Trump during talks with Trudeau called the prime minister "governor" after suggesting Canada should become part of the U.S. Canadian leaders vowed for a tough response to Trump, with many provinces pulling U.S.-made alcohol from the shelves. Ontario Premier Doug Ford has imposed a tariff on electricity sent across the border.
On Monday, Ford doubled down on his tariff promise by imposing a 25% surcharge on electricity delivered to Michigan, Minnesota and New York. Ford said he was reluctant to inflict pain on U.S. consumers, but stressed the Canadian government was serious about its response.
"The Ontario government, through the Minister of Energy and Electrification, retains the ability to increase or decrease the surcharge at any time in response to the actions of the U.S. administration," Ford's office said Monday. "The government has also indicated its willingness to shut off electricity exports to the United States entirely in response to U.S. escalation."
Ford's announcement impacts about 1.5 million U.S. consumers, though the impact of a spot market means there will be other choices apart from Canada.
Elsewhere, Canada and Mexico also represent the top two crude oil exporters to the U.S., with Canada accounting for the bulk of that at 60%, or around 4 million barrels per day.
Midstream infrastructure and manufacturing supply chains are highly integrated as well, with automobiles crossing North American borders several times before completion. Much of the U.S. refining sector, meanwhile, is tooled to process the heavier type of oil found in Canada, not the light, sweet oil found in U.S. shale basins. The U.S. is also a net importer of natural gas from Canada, to the tune of about 5.5 billion cubic feet per day.
Trump vowed to impose a "reciprocal tariff" on Canadian goods starting in April. While tariffs are an import tax that will likely be paid by the consumer, investment bank ING said Canada would feel the brunt of the economic pain.
"Even without a flat 25% tariff, Canadian goods are being selectively targeted by the U.S., and once the 'reciprocal tariff' phase kicks off in April, Canada should be disproportionately affected due to its high export volumes to the U.S.," a Monday note from ING read.
Canada's central bank makes a decision on interest rates on Wednesday.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
