No Exemptions in Upcoming U.S. Tariffs, Says White House

White House Press Secretary Karoline Leavitt announced on Monday that there will be "no exemptions" to President Donald Trump’s latest actions aimed at changing global trade. It is still uncertain what specific duties will apply to Canada.

The global markets are experiencing turmoil as uncertainty looms over how Trump plans to execute his global trading strategy.

President Trump has declared Wednesday as "Liberation Day"; this is when he aims to impose "reciprocal" tariffs that would see U.S. import duties increased to correspond with the tax rates charged by other countries on their imports.

A White House official stated that a decision has yet to be made regarding the reinstatement of economy-wide tariffs on Canada and Mexico, which Trump has associated with the flow of fentanyl into the U.S.

Earlier this month, Trump had already imposed a 25% duty on goods from Canada and Mexico, along with a 10% duty specifically on Canadian energy products. However, these tariffs were later suspended for a few days, with Trump indicating that the pause would last until April 2.

Democratic Senator Tim Kaine expressed intentions to compel a vote regarding Trump’s use of the International Economic Emergency Powers Act (IEEPA) to declare an emergency at the northern border, which could allow for tariffs against Canada.

In an opinion piece in the Washington Post, Kaine argued that "the president is using a fabricated emergency as a ruse to collect tariff revenue, which he can utilize for substantial tax reductions for the very wealthy."

The IEEPA has a provision that enables any senator to force a vote to counter emergency powers. Although this vote might not prevent Trump's declaration of an emergency at the northern border, it would require Republican senators to make their opinions known publicly.

According to U.S. government data, the amount of fentanyl seized at the northern border is exceedingly low. Last week, an Annual Threat Assessment report failed to mention Canada in the section about illegal drugs and fentanyl.

Additionally, the reciprocal tariffs are not the only ones expected to take effect this week; on Thursday, Trump is set to implement a 25% tariff on automotive imports.

The White House official clarified that any exemption for cars manufactured with American parts under the Canada-U.S.-Mexico Agreement will not come into play until a system is established to verify the proportion of foreign components in each finished vehicle.

Earlier this month, Trump imposed a 25% tariff on all steel and aluminum imports, including those from Canada.

The official also stated that many of these tariffs would accumulate if economy-wide tariffs are activated again. Therefore, any car or auto parts not compliant with the continental trade pact would incur double duties, and previously stated steel and aluminum tariffs could rise to 50%.

The implications of the reciprocal tariffs on countries trading with the United States remain vague. On Sunday, Trump indicated that lower tariffs might follow just days after the Wednesday deadline.

"The tariffs will be much more favorable than what other countries have given us. They will be kinder than those countries were to the United States over the decades," Trump commented aboard Air Force One.

The uncertainty around tariffs has led to fluctuations in global market performance. On Monday, the S&P 500 dropped by 0.4%, while the Nasdaq composite saw a decline of 1.2%.

Canadian officials are in talks with members of Trump’s administration to clarify how these tariffs will be implemented. Ontario Premier Doug Ford communicated with U.S. Commerce Secretary Howard Lutnick last week but reported no acquired details.

"I believe he has some comprehension regarding the situation, or perhaps he does not, which would be even more concerning," Ford expressed last Thursday.

This speculation surrounding tariffs follows the first phone call between Trump and Prime Minister Mark Carney, which appeared to suggest a potential easing of the previously tense bilateral relationship.

Trump had previously remarked for months that Canada should consider becoming a U.S. state, often referring to former Prime Minister Justin Trudeau as a "governor."

After the Friday call, Trump described it as "very good" and remarked that he believes in the potential for positive developments between Canada and the United States. Carney mentioned that both leaders agreed to start negotiations on a new economic and security partnership immediately following the upcoming federal election on April 28.

However, when questioned about the impact his tariffs are having on the American economy, Trump reiterated his dismissive stance toward Canadian exports.

"We don’t need energy from Canada. We don’t need lumber from Canada. We don’t need anything from Canada. We don’t need cars from Canada, for example," Trump asserted. "I believe we are about to have what I call the golden age of America."

tariffs, trade, economy