President Donald Trump said tariffs on some goods from Canada and Mexico planned for April 2 “could go up,” and would not predict whether the United States will have a recession in 2025. On Fox News Sunday morning, Trump said reciprocal tariffs would go into effect on April 2 and the one-month reprieve granted to Mexico and Canada was a “little bit of a break.” …But Trump has continued to make changes to tariff plans. On Friday, he threatened new tariffs on Canadian lumber and dairy products. Those tariffs could go into effect on Monday. …Meanwhile, Commerce Secretary Howard Lutnick confirmed Sunday on NBC’s “Meet the Press” that Trump’s promised 25% tariffs on steel and aluminum imports will go into effect Wednesday and tariffs on Canadian dairy and lumber products will “start on April 2.” …Lutnick indicated the tariffs will continue until Trump is “comfortable” with how both countries are handling the flow of fentanyl.
Related coverage in:
- CBS News: Canadian ambassador Kirsten Hillman on “Face the Nation”
- Washington Examiner: Lutnick signals lumber tariffs on Canada not before April
US Commerce Secretary Howard Lutnick signaled he doesn’t expect a reprieve on 25% tariffs for steel and aluminum imports scheduled to take effect on Wednesday. The levies, ordered by U.S. President Donald Trump in February, include imports from Canada and Mexico — which are among the top foreign suppliers — and apply to finished metal products, too. U.S. steelmakers have urged Trump to resist exemptions to the tariffs, which risk hitting US companies that use aluminum and steel. Administration officials have said the policy is aimed at cracking down on efforts by countries including Russia and China to bypass existing duties. Last week, Trump imposed sweeping tariffs on imports from Canada and Mexico but later walked back some of the changes — offering a one-month reprieve to automakers and then expanding that pause to all imported goods covered by the free-trade agreement between the US, Canada and Mexico.
This year’s COFI convention will tackle the most pressing challenge facing BC’s forest sector – predictable access to fibre. Without this, BC’s global competitiveness and the family-supporting jobs forestry provides remain at risk. There is a path forward. Within the sustainable Allowable Annual Cut there are opportunities to surpass a minimum target of 45 million cubic meters of harvest while maintaining environmental stewardship. Achieving these outcomes will require changes to BC Timber Sales (BCTS), innovative approaches to forest landscape planning, stronger partnerships with First Nations, and community-led solutions. Join us for a solutions-oriented discussion, featuring distinguished experts: George Abbott, Treaty Commissioner, Former BC Cabinet Minister & Member, BC Timber Sales Review Task Force; David Elstone, Managing Director, Spar Tree Group; Makenzie Leine, Vice President, Business Development, A&A Trading; Jennifer Gunter, Executive Director, BC Community Forest Association; moderated by Michael Armstrong, VP and Chief Forester at COFI.
When President Trump threatened new tariffs on Mexico, Canada and China at the beginning of February, Steve Martinez flew into action. The Idaho-based general contractor spent hundreds of thousands of dollars on materials like lumber, windows, cabinetry and steel to stockpile them before the tariffs hit. …Since his lenders wouldn’t finance these purchases, he is paying out of pocket and using cash. Then after the president abruptly walked them back, Martinez was left with an upended business plan, less cash and feeling confused about what to do next. “I can’t keep ping ponging back and forth,” Martinez said. …Builders have been doing what they can to insulate themselves from higher import costs, from stockpiling materials and appliances to shrinking the size of the homes they will build. But if tariffs take effect long term, they will only be able to absorb so much cost. [to access the full story a WSJ subscription is required]
As we enter what are typically the most profitable months for US builders, widespread uncertainty regarding pricing is casting a pall over the industry. Northeastern Retail Lumber Association (NRLA) crystallizes these concerns, noting that: “Despite repeated delays of tariffs on imports from Mexico and Canada, prices continue to fluctuate unpredictably, leading to hoarding by customers, delayed orders for restocking, and customers abandoning purchases due to sudden cost increases.” The NRLA says the current situation recalls the tumult of pandemic-era supply chain shortages. “Now, dealers are reporting the same patterns: unpredictable cost increases, uncertainty in securing supply, and customers unable to move forward with purchases due to rapidly shifting prices.” …NRLA writes that daily price changes are making it impossible for retailers to provide accurate quotes, which constricts pricing guarantees. …NRLA dealers are reporting that even U.S.-made manufactured materials are seeing price increases.
Thousands of US companies opened for business on Friday with no idea whether they had to pay tariffs. …In imposing the tariffs, Mr. Trump misused the 1977 International Emergency Economic Powers Act. Congress passed IEEPA to give presidents tools to respond quickly to emergencies like wars or terrorist attacks. …IEEPA has never been used for tariffs, and courts should rule that it can’t be. …US trade laws require the president to identify and investigate specific trade practices that harm the U.S. and then propose remedies, such as tariffs or negotiations. A president may impose tariffs on specific goods if fact-finding determines that imports threaten US national security. Mr. Trump’s reasons for imposing tariffs on Canada don’t appear to satisfy these standards. …Faced with Mr. Trump’s tariff threats, Canadian, Mexican and European officials have indicated that they are open to collective action against China, the world’s biggest exporter and a major source of US trade deficits. [to access the full story, a WSJ subscription is required]