Trump’s pause on tariffs, Buy Canadian sentiment and the latest job numbers: Must-read
A customer holds a bottle as a sign that reads ‘Buy Canadian Instead’ is displayed after the top five U.S. liquor brands were removed from sale at B.C. Liquor Stores, as part of a response to U.S. President Donald Trump’s 25 per cent tariffs on Canadian goods.Chris Helgren/Reuters
Trump hits pause on trade war – for now
This week, U.S. President Donald Trump agreed to a 30-day pause on tariffs against Canada after the federal government promised to invest $200-million more in fighting organized crime and drugs. Canada also pledged to appoint a fentanyl czar, designate drug cartels as terrorists and to launch a new joint strike force to combat organized crime and illegal production and distribution of fentanyl, Steven Chase and Nathan VanderKlippe report. Last year, 19.5 kilograms of fentanyl were intercepted along the Canadian border last year – which is 0.2 per cent of the nearly 11 tonnes intercepted in total in the U.S. The data the White House is pointing to also appears to have no known connection to Canada, Kathryn Blaze Baum and Colin Freeze report. Nevertheless, the agreement delays a costly and damaging trade war – at least for now – with Canada’s biggest trading partner.
Retailers, consumers respond to the Buy Canada sentiment
While the U.S. tariffs threat is on pause, the reaction from many Canadians shows that the cross-border chaos struck a nerve. The impacts of U.S. tariffs could be devastating to Canadian businesses and the economy, and in response, a movement has surged to boycott U.S. goods and buy Canadian products instead. Grocery retailers have placed signage pointing to locally grown produce, or Canadian brands, and social-media posts have been circulating with lists of brands Canadians could choose to support in lieu of American products, Susan Krashinsky Robertson reports. Looking for tips on how to join the Buy Canadian initiative? We put together a Canadian consumer’s guide to patriotic shopping.
There are plenty of items marked product of Canada or made in Canada, but what do these terms really mean when looking to buy Canadian products? Business reporter Erica Alini outlines what to look for.
The Globe and Mail
Decoder: Wanted? More trade partners for Canada
Politicians and business leaders are renewing calls for Canada to look for more trade partners and to rely less on the United States. But Statistics Canada figures show that a large majority of Canadian businesses send their goods to just one partner country – the United States. In fact, nearly nine out of 10 exporters shipped their merchandise to the U.S. in 2023. Trade diversification is arguably getting worse despite Canada signing a number of free-trade agreements over the past decade, Matt Lundy reports. Why? The Statscan numbers suggest that tapping into new markets can be a hard-won battle. Get a closer look at the numbers in this week’s Decoder.
Canada’s unemployment rate drops again in January
Canada’s unemployment rate unexpectedly fell and the economy posted another solid month of job gains, Statistics Canada said on Friday, signalling that joblessness has started to ease. The unemployment rate was 6.6 per cent in January, down from 6.7 per cent in December. The economy also added a net of 76,000 jobs, slightly down from 91,000 job additions in December. The bad news: The total number of unemployed people stayed at a high of 1.5 million, suggesting that many people are facing continued difficulties finding work. A Bank of Canada survey showed last month that the looming threat of tariffs and a sharp drop in immigration numbers are likely to impact economic activity in coming months. In fact, Bank of Canada Governor Tiff Macklem said Thursday that threatened tariffs are already weighing on both Canada and Mexico’s economies, and prolonged uncertainty could exacerbate the effects.
Governor of the Bank of Canada Tiff Macklem participates in a news conference on the bank’s interest rate announcement and release of the Monetary Policy Report in Ottawa on Wednesday, Jan. 29, 2025.Justin Tang/The Canadian Press
Trump’s pursuit of ‘golden age’ jolts Canada to confront its growth problem
U.S. President Donald Trump has raised the stakes for Canada to get serious about competition – and ensure that capital doesn’t flood south. Canadian businesses have long lamented over regulatory hurdles, project approval delays and an uncompetitive tax structure that make Canada less attractive to set up shop compared to the United States. Meanwhile, the prospect of a trade war has revealed just how vulnerable the Canadian economy is to the whims of a hostile U.S. administration and sparked a national conversation about prioritizing domestic growth policies. Nojoud Al Mallees and Jason Kirby take a look at how policymakers can make Canada attractive for investment and how to pursue sources of economic growth beyond the United States.
Who called U.S. President Donald Trump’s move to impose 25-per-cent tariffs on Canada and Mexico this week “the dumbest trade war in history”?
a. The Economist magazine
b. Prime Minister Justin Trudeau
c. The Wall Street Journal
d. Former U.S. president Barack Obama
c. The Wall Street Journal editorial page, normally a staunch supporter of Mr. Trump, was stinging in its criticism of the president’s tariff threats.
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