By Canadian Press

round two

Donald Trump won’t hit Canada with tariffs on his first day in office: reports

Jan 20, 2025 | 7:27 AM

Donald Trump has returned to the White House Monday with a massive agenda aimed at leading a deeply divided United States on a starkly different path — and the Republican leader has signalled he means to put some distance between the U.S. and its ally Canada.

Canadians will be watching inauguration day ceremonies anxiously to see what Trump lists as his early priorities after he threatened to hit Canada with a 25 per cent across-the-board tariff as early as Monday.

His team reportedly has prepared more than 100 executive orders — though it’s not clear what’s in that package and how many of those orders will be signed immediately.

“I think we want to see what the president decides to do,” Kirsten Hillman, Canada’s ambassador to the U.S., told Bloomberg News last week. “Canada will be ready for whatever comes our way.”

It appears that Trump is holding off on tariffs for now. A Trump official, who insisted on anonymity while outlining the incoming president’s plans during a call with reporters, pointed to a Wall Street Journal report saying Trump will only sign a memorandum telling federal agencies to study trade issues, including alleged unfair trade and currency practices by Canada, Mexico and China.

round two

Donald Trump won't hit Canada with tariffs on his first day in office: reports

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Thousands of people wearing Trump tuques and hats were braving the frigid weather in Washington Monday morning to head to Capitol One Arena, where the inaugural events have been relocated because of the cold snap.

Monday is a federal holiday, so many of the people who otherwise would be filling the streets heading to work have opted to stay away from the celebrations, leaving the area largely to Trump’s supporters.

People selling Trump merchandise lined the streets near the arena Monday morning and supporters in the crowd said they’re keenly awaiting Trump’s return to the White House.

Kenneth Johnson, visiting the capital from Boulder City, Nev., said he believes Trump will stop other countries from “taking advantage” of the U.S. and bring down the cost of groceries.

“We’re getting rid of the corruption. We’re getting rid of the baloney,” he said, citing President Joe Biden’s last-minute pardon of administration officials who might face retribution from Trump.

“Our president’s going to be back in office in two hours. Our nation’s going to be back under control,” Johnson said Monday morning.

Daniel Blake travelled from Connecticut to take in the moment and celebrate with others excited about the promise of smaller government.

“We basically waste our taxpayer money, so I’m excited about that,” he said, adding he hopes Trump strikes a conciliatory tone in his address. “I do want to hear unity, just common sense.”

Trump is the first former president to return to power since Grover Cleveland regained the White House in the 1892 election. He is the first person convicted of a felony ever to become president and, at 78, is the oldest person ever elected to the office.

This inauguration celebration promises to be much different from the one that took place when Trump first took office in 2017. While thousands of people showed up to a People’s March against Trump in the nation’s capital Saturday, officials said they don’t expect massive demonstrations, unrest or violence on Monday.

Trump’s first speech as president in 2017 painted a bleak picture of what he called “American carnage” but it was overshadowed in the news cycle by his claims about crowd sizes.

That won’t be an issue this year, as a predicted blast of cold temperatures forced most of the events indoors.

Country music star Carrie Underwood is set to perform “America the Beautiful” before Trump delivers his oath of office in the Capitol Rotunda.

Tech billionaires, world leaders, celebrities and athletes are among those expected to watch Trump give his inaugural address. They include three of the richest men in the world — Elon Musk, Mark Zuckerberg and Jeff Bezos.

It has been reported that the theme of Trump’s speech will be “unity.”

The celebrations offer a stark contrast to the nature of Trump’s departure from the nation’s capital four years ago. In the wake of the Jan. 6 Capitol Hill attack, Trump refused to accept the outcome of the 2020 election and skipped Biden’s inauguration.

Biden and Vice-President Kamala Harris, as well as former presidents Barack Obama, George W. Bush and Bill Clinton, have indicated they will be in attendance on Monday.

It’s not clear how the change in venue will affect the guest list.

Many Canadian politicians have travelled to Washington and are attending an event at the Canadian Embassy, which sits on Pennsylvania Avenue between the U.S. Capitol and the White House.

Among those in attendance are federal Industry Minister François-Philippe Champagne and Trade Minister Mary Ng.

Alberta Premier Danielle Smith will also be in the U.S. capital for the inauguration. Last week, Smith refused to sign a joint statement with other premiers and Prime Minister Justin Trudeau that said every countermeasure would be on the table to push back against U.S. tariffs.

Smith, who recently travelled to Trump’s Mar-a-Lago resort in Florida to meet with the president-elect, broke from the pack by refusing to consider any plan that would include possible levies on oil exports or cutting off energy supplies to the U.S.

Canada has multiple options for retaliatory tariffs ready to go depending on what Trump ultimately does. If Trump sets the tariffs at 25 per cent, Canada’s response would be to impose counter-tariffs worth roughly $37 billion, and possibly follow up with another $110 billion in tariffs.

If the duties are lower, Canada’s tariff response is expected to be more modest.

Hillman appeared on multiple American news programs last week to make the case that any type of trade war between Canada and the U.S. should be avoided.

“I’m really hopeful that we are not going to get to that place,” Hillman told Bloomberg News.

“It’s not good for the U.S., it’s not good for Canada. And there’s a lot of good things we can be doing together right now in energy and all sorts of other areas of trade.”

— With files from Dylan Robertson and The Associated Press

This report by The Canadian Press was first published Jan. 20, 2025.