Update on US Tariffs and Canada's Response

I want to assure everyone that we are closely monitoring the U.S. tariffs announced on Saturday, February 1st, and their potential impact on Canadians. While these measures will have economic implications, it is important to take a measured approach as we assess the full extent of their effects. The duration of these tariffs and Canada’s ongoing negotiations with the U.S. will play a key role in determining the outcome.

At present, Canada is actively engaging with U.S. officials at both federal and state levels to seek a resolution. Given that Canada is the largest export market for 36 U.S. states, there is significant pressure from affected U.S. businesses to advocate for a rollback of these tariffs in order to avoid economic disruptions.

Additionally, the Bank of Canada (BofC) is prepared to act, including potential interest rate adjustments, to help mitigate any economic slowdown resulting from these tariffs. The Canadian government has also introduced a remission process, allowing businesses to apply for exemptions from specific tariffs.

Historically, tariffs have often been used as a negotiating tool rather than a long-term trade policy. Canada is responding strategically by:

• Building economic and political pressure within the U.S. through state-level impacts and industry lobbying.
• Leveraging trade agreements and dispute resolution mechanisms to push for a fair resolution.
• Implementing targeted retaliatory measures to encourage reconsideration of the tariffs.
• Strengthening trade relationships with alternative markets to reduce reliance on U.S. trade.

While the situation remains fluid, these combined efforts increase the likelihood of a favorable resolution. As always, our priority is to keep you informed and prepared. If you have any questions or would like to discuss how this may affect you, please don’t hesitate to reach out. I’m here to help.

Thank you for your time, and I appreciate the trust you place in us.

Best regards,

Hollie Winkelaar