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Trump promises tariff revenue, fair trade and more jobs

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President Donald Trump told Congress on Tuesday that tariffs would make America rich again, but predicted minor “disturbances” on the path ahead.

Trump said he would put reciprocal tariffs on foreign countries starting April 2.

“Whatever they tariff us, we tariff them. Whatever they tax us, we tax them,” Trump said. “If they do non-monetary tariffs to keep us out of their market, then we do non-monetary barriers to keep them out of our market. We will take in trillions of dollars and create jobs like we have never seen before.”

Trump didn’t detail the potential disturbance in his speech, but economists and business groups have raised concerns about higher prices for U.S. consumers.

Trump also promised Congress would balance the federal budget and reduce taxes. Making good on those promises could come with challenges.

Trump previously said he wants a balanced budget, but his promise to extend the tax cuts in the 2017 Tax Cuts and Jobs Act could make that difficult for both the House and Senate. Extending the tax rates could cost about $4 trillion in federal revenue, independent groups say.

In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001. Congress has run a deficit every year since then.

During his inauguration, Trump touted the benefits of tariffs. He said tariff revenue would make the U.S. “rich as hell ” and lower the tax burden on American taxpayers.

Trump’s comments Tuesday before a joint session of Congress came after he put 25% tariffs on Mexico and Canada and added an additional 10% duty on imports from China. He has said he plans to keep those tariffs in place until Mexico and Canada stop illegal immigration and drug trafficking at the U.S. borders.

The tariffs spooked investors on Wall Street, causing a second day of market losses Tuesday. Consumers and economists have raised concerns about higher prices on a wide range of products as a result of the tariffs.

Tariffs are taxes on imported goods paid by the importer, which are often passed along to consumers through higher prices on the imported products.

Canada responded with plans to put 25% tariffs on nearly $100 billion of U.S. imports. Mexico said it would retaliate with moves to be announced Sunday. China filed a complaint with the World Trade Organization.

The U.S. Chamber of Commerce and the American Farm Bureau Federation called on Trump to change course on tariffs.

Later Tuesday, Commerce Secretary Howard Lutnick said Trump could announce trade compromises with Canada and Mexico as soon as Wednesday.

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Alberta

Alberta pushes back on illegal U.S. tariffs

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Alberta’s government is implementing a proportionate, measured response to U.S. tariffs and taking decisive action on internal trade with free trade and mobility agreements.

As part of its non-tariff retaliatory measures, Alberta is altering its procurement practices to ensure Alberta’s government, as well as agencies, school boards, Crown corporations and Alberta municipalities, purchase their goods and services from Alberta companies, Canadian companies or countries with which Canada has a free trade agreement that is being honoured.  

“I will always put the best interests of Alberta and Albertans first. These non-tariff actions are measured, proportionate and put an emphasis on defending Alberta and Canada against these economically destructive tariffs imposed by U.S. President Donald Trump, while breaking down restrictive provincial trade barriers so we can fast-track nation building resource projects and allow for the unrestricted movement of goods, services and labour across the country. I understand this is an uncertain time for many Albertans, and our government will continue to do all it can to prioritize Alberta’s and Canada’s world-class products and businesses as we face this challenge together. I also look forward to working with my provincial counterparts to help unite Canada and ensure free and fair trade throughout our country.”

Danielle Smith, Premier

Alberta’s government has also directed Alberta Gaming, Liquor and Cannabis to suspend the purchase of U.S. alcohol and video lottery terminals (VLTs) from American companies until further notice. This will ensure Alberta and Canadian brands take priority in restaurants, bars and on retail shelves.

“We are committed to putting Canadian businesses first. By suspending the purchase of U.S. produced alcohol, slot machines and VLTs, we are ensuring that Alberta and Canadian brands take priority in our restaurants, bars and retail stores. We will continue to take bold steps to support local industries and strengthen our economy.”

Dale Nally, Minister of Service Alberta and Red Tape Reduction

To encourage the purchase of stock from vendors in Alberta, Canada and other countries with which Canada has a free trade agreement, the government will help all Alberta grocers and other retailers with labelling Canadian products in their stores. In the coming weeks, Alberta’s government will augment these efforts by launching a “Buy Alberta” marketing campaign. Spearheaded by Minister of Agriculture and Irrigation RJ Sigurdson, this campaign will remind Albertans of their options for local food and the importance of supporting Alberta’s agriculture producers and processers.

“Alberta’s agriculture producers and processers are the best in the world. Although these U.S. tariffs are incredibly concerning, this “Buy Alberta” campaign will put a spotlight on Alberta’s farmers, ranchers and agri-food businesses and support Albertans in choosing goods from right here at home.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Building on Alberta’s reputation as a leader in removing barriers to trade within Canada, Alberta’s government will continue to push other provinces to match our ambition in providing full labour mobility and eliminating trade barriers through work like mutual recognition of regulations. This will allow for goods, services and labour from other provinces to flow into and out of Alberta without having to undergo additional regulatory assessments.

“While no one wins in a tariff war, this situation underscores the need to develop Canada’s trade infrastructure and the diversification of our trading partners and could be the catalyst to unlocking Canada’s true potential. As we look at how best to support Albertans and our businesses, we must also work to reduce internal trade and labour mobility barriers while expanding markets for Alberta energy, agricultural and manufactured products into Europe, Asia, the Americas and beyond. Albertans and Canadians are counting on us.”

Matt Jones, Minister of Jobs, Economy and Trade

Alberta’s government is also focused on doubling oil production. With U.S. tariffs in place on Canadian energy products, Alberta is looking elsewhere for additional pipeline infrastructure, including east and west, in order to get our products to new markets.

Alberta’s government will continue to engage with elected officials and industry leaders in the U.S. to reverse these tariffs on Canadian goods and energy and rebuild Canada’s relationship with its largest trading partner and ally.

Quick facts

  • On March 4, U.S. President Trump implemented a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on Canadian energy.
  • The U.S. is Alberta’s – and Canada’s – largest trading partner.
  • Alberta is the second largest provincial exporter to the U.S. after Ontario.
    • In 2024, Alberta’s exports to the U.S. totalled C$162.6 billion, accounting for 88.7 per cent of total provincial exports.
    • Energy products accounted for approximately C$132.8 billion or 82.2 per cent of Alberta’s exports to the U.S. in 2024.
  • About 10 per cent of liquor products in stock in Alberta are imported from the United States.
    • U.S. products represent a small minority of the beer and refreshment beverage categories; however, a significant number of wines originate in the U.S.
    • In 2023-24, about $292 million in U.S. liquor products were sold in Alberta.
  • Alberta has been a longstanding supporter of reducing barriers to trade within Canada. In 2019, the province removed 21 of 27 exceptions, including all procurement exceptions, and narrowed the scope of two others. Since then, the province has only added 2 exceptions, which allow for the management the legalization of cannabis.
    • Removing party-specific exemptions has helped facilitate even greater access to the Alberta market for Canadian companies in the areas of government tenders, Crown land acquisition, liquor, energy and forest products, among others.
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Business

Trump gives top three U.S. automakers one-month break from tariffs

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President Donald Trump will give the big three U.S. automakers a one-month exemption from tariffs he imposed on Mexico and Canada, White House Press Secretary Karoline Leavitt said.

Leavitt said the pause on tariffs for automakers would ensure they aren’t put at a disadvantage. The request came from the heads of Ford Motor Co., General Motors Co. and Stellantis NV, she said.

Earlier Wednesday, Trump said he spoke with Canada’s Prime Minister Justin Trudeau, but the two weren’t able to reach a deal.

“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,” Trump wrote in a post on Truth Social. “He said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!”

Tariffs are taxes on imported goods paid by the companies that import them. After paying those taxes, businesses can try to either absorb the loss or pass the added costs on to consumers. On Tuesday, Trump hit Canada and Mexico with 25% tariffs on imported goods and added an additional 10% duty on goods from China. All three countries have promised retaliatory measures.

Trump said he told Trudeau more needs to be done to stop the flow of fentanyl, a potent opioid responsible for the majority of U.S. overdose deaths. Most fentanyl that comes in to the U.S. comes through the southern border and is often made with chemicals from China, according to the Drug Enforcement Administration.

“For anyone who is interested, I also told Governor Justin Trudeau of Canada that he largely caused the problems we have with them because of his Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States,” Trump wrote on Truth Social. “These Policies are responsible for the death of many people!”

U.S. stocks increased after the White House announced a one-month tariff reprieve for auto imports from Mexico and Canada.

Last Tuesday, Commerce Secretary Howard Lutnick said Trump would likely compromise with both Canada and Mexico “somewhere in the middle.”

Trump has taken to calling Trudeau “governor” as he seeks to add Canada as the 51st U.S. state.

Trump first put tariffs on the three countries on Feb. 1, but paused the punitive trade measures on Mexico and Canada for 30 days after getting minor border concessions from Trudeau and Mexico President Claudia Sheinbaum.

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