Good morning! Welcome back to Queen Street Analytics' weekly roundup of US-Canada trade relations and foreign relations, drawing on both Canadian and US government sources.

Every Monday, we break down the most important updates in this space in under five minutes.

Start Date: 2025-03-30
End Date: 2025-04-05

Top Headlines

Main Stories

Canada's Countermeasures Against U.S. Auto Tariffs

Minister François-Philippe Champagne met with provincial finance ministers to discuss Canada's response to U.S. tariffs on Canadian automobiles. The meeting focused on Canada's countermeasures, including waiving the employment insurance waiting period and deferring corporate tax payments. Champagne updated ministers on discussions with U.S. Treasury Secretary Scott Bessent and emphasized Canada's commitment to supporting affected sectors.

Sources: Announcements: www.canada.ca

Trump's National Emergency Declaration and Tariffs

President Trump issued an executive order imposing a 10% tariff on all imports starting April 5, 2025, citing U.S. trade deficits and foreign trade practices. The order aims to strengthen domestic manufacturing and includes higher tariffs for specific trading partners. Exceptions apply to goods like steel and energy products.

Sources: White House Announcements: www.whitehouse.gov

Canadian Merchandise Trade Deficit Widens in February

Canada's merchandise exports fell by 5.5% in February, while imports rose by 0.8%, shifting the trade balance from a $3.1 billion surplus in January to a $1.5 billion deficit. This change indicates challenges in Canada's international trade dynamics.

Sources: Open Government Data Set: www.statcan.gc.ca

Canada's International Trade in Services Deficit Grows

Canada's services trade deficit increased from $0.6 billion in January to $0.7 billion in February. Exports declined by 1.6%, while imports fell 0.8%.

Sources: Open Government Data Set: www.statcan.gc.ca

Returning Snowbirds Face Tariffs on U.S. Goods

The Canada Border Services Agency reminds Canadians returning from winter stays abroad of a 25% surtax on certain U.S. products. The surtax applies to goods exceeding personal exemption limits and is assessed at the border.

Sources: Announcements: www.canada.ca

Important Updates

Secondary Stories

U.S. Tariffs on Automobiles Come Into Effect

A 25% tariff on certain automobile imports to the U.S. began April 3, 2025, following President Trump's proclamation addressing national security concerns.

Sources: U.S. Federal Announcements: www.federalregister.gov

Sparta Energy Applies to Export Electricity to the U.S.

Sparta Energy, Inc. submitted an application to the Canada Energy Regulator for authorization to export 876,000 MWh of electricity annually to the U.S. over ten years. The CER is seeking public input on the impact of the export on Canadian provinces and conditions for local electricity consumption.

Sources: Gazette, Part I: www.gazette.gc.ca

U.S. Issues Final Determination on Multifunction Printers

CBP determined that Konica Minolta's multifunction digital printers are products of Mexico for U.S. procurement, following substantial transformation in Mexico.

Sources: U.S. Federal Announcements: www.federalregister.gov

Trump's Statements on Reciprocal Tariff Plan

White House lays out reciprocal trade plan, including a universal 10% tariff.

Sources: White House Announcements: www.whitehouse.gov

Ontario Responds to U.S. Softwood Lumber Duties

Ontario expressed disappointment over increased U.S. duties on softwood lumber exports, emphasizing negative impacts on construction costs and housing affordability in the U.S.

Sources: Provincial Announcement: news.ontario.ca

Provincial Announcements

Premier Smith on CUSMA and Tariffs

Premier Danielle Smith sees U.S. adherence to CUSMA as a win for Alberta, with no tariffs on energy, minerals, and other goods, though auto tariffs remain.

Sources: Provincial Announcement: www.alberta.ca

Alberta Promotes Wood Products in Texas

Minister Todd Loewen led a delegation to Texas to promote Alberta wood products and advocate for fair trade practices with key U.S. stakeholders.

Sources: Provincial Announcement: www.alberta.ca

Public Officials' Social Media

MP Leah Gazan on Windsor Automaker Layoffs

MP Leah Gazan highlighted layoffs among Windsor automakers due to Trump's tariffs, calling for major investments in Canadian jobs and EI expansion.

Sources: Social Media: x.com

MP Kody Blois on Economic Protection

MP Kody Blois emphasized measures to protect Canadian workers from Trump's tariffs, under Prime Minister Mark Carney's leadership.

Sources: Social Media: x.com

MP Lindsay Mathyssen Advocates Made-in-Canada Act

MP Lindsay Mathyssen introduced Bill C-300 to prioritize Canadian-made products in government procurement, promoting domestic incentives.

Sources: Social Media: x.com

Senator Tony Loffreda on Trade Diversification

Senator Tony Loffreda attended "Italy-Quebec: A Space for Opportunities," stressing Canada's need to diversify trade amidst the global trade war.

Sources: Social Media: x.com

Senator Pamela Wallin Questions Canada's Strategy

Senator Pamela Wallin questioned Canada's regulatory and infrastructure readiness to counteract Trump's tariffs, referencing Trevor Tombe's insights.

Sources: Social Media: x.com

What We're Reading This Week

• Trump tariffs and Canada: Premiers support plans for 25% tariffs on U.S.-made cars; recession fears grow.
• Ottawa to avoid countertariffs: Risking Canadian jobs and price hikes.
• Odd U.S. products targeted by tariffs: Flame-throwers and manatee meat among items.
• Smith weighs in on trade relationship: At Calgary chamber event.