The Dental Industry Association of Canada (DIAC) said Tuesday it is “closely monitoring developments” after U.S. President Donald Trump imposed tariffs on imports from Canada and Mexico — a 25 per cent across-the-board levy.
Trump, however, imposed a lower 10 per cent charge on Canadian energy and 10 to 20 per cent tariffs on Chinese-origin goods, in addition to existing duties, triggering a continental trade war.
“DIAC recognizes the critical role our members – manufacturers, suppliers, laboratories, service providers and distributors – play in supporting Canadian dental practices,” the association said, adding that it is “actively assessing how we can support our members during this evolving situation.”
DIAC also said it is “gathering information” from other industry partners such as Medtech Canada, the Canadian Dental Association, provincial dental associations and the federal government to evaluate the tariff’s impact.
“[DIAC] is actively assessing how we can support our members during this evolving situation.”
Exploring potential steps
So far, it is exploring potential steps such as advocating for tariff exemptions on dental goods through collaboration with trade organizations, working to streamline cross-border supply chains to minimize disruptions and identifying alternative markets to reduce dependency on U.S.-routed imports.
As DIAC gains more “clarity” on the situation, it will provide updates on potential government measures and its advocacy efforts.
Following Trump’s tariffs, Canada launched retaliatory 25 per cent tariffs effective March 4 on $30 billion in goods imported from the United States.
Like on Feb. 4, when Trump initially announced the tariff but paused it for a month, Canada’s retaliatory tariffs target U.S. dental floss and toothpaste. However, given the nature of tariffs, the measures are expected to have wider implications, impacting supply chains across markets.
Canadian response
Addressing the nation Tuesday, Prime Minister Justin Trudeau told reporters at a news conference on Parliament Hill that Trump is trying to prompt “a total collapse of the Canadian economy” because he thinks that will “make it easier to annex us.” He described Trump’s actions as “very dumb.” “Donald, you are a very smart guy, this is a very dumb thing to do,” said Trudeau.
“Donald, you are a very smart guy, this is a very dumb thing to do.” Prime Minister Justin Trudeau.
Meanwhile, clips of Ontario Premier Doug Ford threatening to cut off electricity to the United States played repeatedly on U.S. television stations. Images of American liquor being pulled from shelves in Canadian stores suggested what could come next if Trump continues his trade war.
Ontario supplies about 1.5 million U.S. customers in border states with electricity.
Any expected compromise from the U.S.?
A key member of Trump’s team has floated the idea of a compromise that could materialize Wednesday, The Canadian Press reported.
U.S. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV on Wednesday morning that he expects Trump to make an announcement regarding the tariffs on Canada and Mexico that afternoon. So far, the Trump administration said on Wednesday that it would pause tariffs on automakers from Canada and Mexico for one month.
“The president is listening to the offers from Mexico and Canada. He’s thinking about trying to do something in the middle.” U.S. Commerce Secretary Howard Lutnick.
Lutnick suggested the tariffs will remain at 25 per cent but said some categories of goods might be exempted, including the auto sector.
He said exemptions could be made for products compliant with the rules under the United States-Mexico-Canada Agreement, which was negotiated during Trump’s first term.
“The president is listening to the offers from Mexico and Canada. He’s thinking about trying to do something in the middle,” Lutnick said.
“It will be 25 per cent, but there will be some categories left out. It could well be autos, could be others as well.”
Trump addressed a joint session of Congress on Tuesday night for the first time since returning to office in January. He defended his sweeping tariff agenda.
“We have been ripped off for decades by nearly every country on Earth and we will not let that happen any longer,” Trump told lawmakers in Washington.
(With files from CP)