Trump's 35% tariffs on Canadian goods disappointing but not surprising, Ontario experts say

Ontario trade experts say they're disappointed and frustrated — but not surprised — at U.S. President Donald Trump's threat to impose a 35 per cent tariff on Canadian goods.

Trump's announcement came in a letter to Prime Minister Mark Carney that the president posted to social media on Thursday evening. 

The tariffs would come into effect Aug. 1, he wrote in his letter.

It's just another time the president is crying wolf, says Daniel Tisch, CEO of the Ontario Chamber of Commerce. 

"It's unknown if this is serious or this is just a negotiating ploy," he said. "My guess is that the negotiations were not going very well … The Americans were probably looking for Canada to put more things on the table to trade with."

Both Canadians and Americans are fed up, Tisch says.

"We need predictability, we need stability, we need clear rules that we can follow. It's reasonable for American and Canadian businesses alike to expect that governments will deliver that," he said.

The situation is certainly frustrating, says Toronto Region Board of Trade CEO Giles Gherson. 

"Already, we've seen a decline in our exports, on investments," he said. "[Companies] are going to be holding back — that's harmful to our economy, harmful to jobs, harmful to our ability to grow."

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Moshe Lander is a professor of Economics at Concordia University. 

But Gherson says this is nothing more than a pressure tactic from the president's administration.

"It's the way they operate, which is to put pressure on [us] to try to secure the most advantageous deal possible," he said. 

Trump and Carney have been in talks since last week in the hopes of coming to some sort of trade resolution by July 21. 

Now is the time to negotiate, Premier Doug Ford's office told CBC Toronto in a statement. 

"Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs," the statement said.

Ford said Carney has agreed to an in-person First Ministers' Meeting in Huntsville, Ont., later this month, in a post on social media.

"In the face of President Trump's latest threat, we need to come together. We need a plan on how Canada will respond and how we'll protect our workers, businesses and communities," Ford said.

Gherson agreed that it's important to come up with a strategy in response to the threat.

"I'm hopeful that the current administration will be able to continue to negotiate, stay at the table, keep a cool head and see this through to a successful conclusion," he said. 

This has shown Canadians how "vulnerable" the country's economy is, Gherson said. The next four years will likely be difficult, he said, hence the importance of working toward a stronger, more resilient manufacturing industry. 

"We can't be complacent," he said. "We've got to work hard on our regulatory structure. We've got to work hard on our tax structure. We've got to enable investment to happen here so that we can grow jobs."

Tisch says it's all about handling it like a business deal.

"This is not about principle now. This is about figuring out how do we get this guy to move off looking at us and look at someone else. And if we don't, then we bear the consequence," he said.