The U.S. has revealed a two-stage tariff plan in which Canada and Mexico will face initial trade threats within days, then again face broader threats this spring.
In summary, it’s: maybe tariffs now, and maybe more tariffs later.
The details emerged Wednesday at the U.S. Senate confirmation hearing for the person chosen to lead President Donald Trump’s tariff policy, Howard Lutnick.
It occurred as Canadian officials engaged in frantic last-ditch efforts to dissuade U.S. officials from imposing tariffs as threatened by Feb. 1, even producing a video demonstrating Canada’s border enforcement.
The nominee for commerce secretary laid out that two-step approach in an exchange with Michigan Sen. Gary Peters, who expressed fear about what a cross-border trade war could mean for his state.
Lutnick explained that Phase 1 is essentially an emergency action to deal with the fentanyl crisis: “You know that the [drug] labs in Canada are run by …