In recent developments from Toronto, Canadian Prime Minister Justin Trudeau has taken a firm stance against lifting Canada’s retaliatory tariffs on the United States unless President Donald Trump removes U.S. tariffs targeting Canada, according to a senior government official.
The official, speaking on condition of anonymity due to the lack of authority to discuss the matter publicly, revealed that Trudeau and Trump engaged in a phone conversation around midday.
Trudeau’s robust position has received public reinforcement from other Canadian officials.
“We’re not interested in meeting in the middle and having some reduced tariff. Canada wants the tariffs removed,” Canadian Finance Minister Dominic LeBlanc articulated on the Canadian Broadcasting Corporation.
Doug Ford, the Premier of Ontario and leader of Canada’s most populous province, echoed this sentiment strongly.
“Zero tariffs or nothing. This attack was not started by our country. This was started by President Trump. He decided to declare an economic war against our country and our province, and we’re going to hold strong,” Ford stated.
President Trump’s latest move has sparked a fresh trade war by imposing tariffs on three of Washington’s largest trading partners: Mexico, Canada, and China. The financial markets reacted unfavorably, creating an economic ripple effect.
Trump implemented a 25% tariff on Mexican and Canadian imports, with the exception of a 10% levy on Canadian energy.
Following the tariff enforcement, a day later, Trump announced a temporary one-month exemption for U.S. automakers after discussions with leaders of Ford, General Motors, and Stellantis, the parent company of Chrysler and Jeep.
His press secretary indicated that Trump urged the company executives to relocate auto production to the U.S. to circumvent tariffs.
Vice President JD Vance acknowledged that multiple industries have petitioned for exemptions from the tariffs, signaling potential leniency.
Reflecting a possible shift in strategy, U.S. Commerce Secretary Howard Lutnick suggested that exceptions might be considered.
This adjustment follows the market turbulence and growing consumer apprehension due to the tariffs.
Commenting on the market upheaval, Ford remarked, “The American people woke up two days ago when the market was crashing,” recognizing the public outcry and market reactions that, according to Ford, captured Trump’s attention.
Several Canadian provinces retaliated by suspending the sale of American alcohol, with Manitoba’s leader, Wab Kinew, mockingly signing an order to remove U.S. liquor from stores.
Canadian Foreign Minister Mélanie Joly expressed Canada’s aversion to repeatedly facing unpredictability and disruption originating from the White House.
“There’s too much unpredictability and chaos coming from the White House right now,” Joly commented, highlighting concerns about stability.
During a Bloomberg Television interview, Lutnick confirmed that tariffs would remain but noted potential relief until April 2.
After which, Trump plans to announce a set of “reciprocal” tariffs, increasing global tariff rates while preserving the option of broader enforcement.
Should these tariffs remain, Ford warned that American and Canadian auto industries face significant threat, estimating operational disruptions within 10 days without immediate action.
“People are going to lose their jobs,” he cautioned.
Lutnick planned further discussions with Trump about options concerning Canada and Mexico, recognizing both countries’ efforts to address U.S. concerns over drug trafficking issues.
Nelson Wiseman, a professor emeritus at the University of Toronto, observed that Trudeau’s term ‘very dumb’ in reference to the tariffs resonated strongly within Canada.
“Canada had a choice: to go along with Lutnick’s proposal or to reject it. The government opted for the latter, but that may be a negotiating ploy. It is playing well with Canadians. They are very angry with Trump,” Wiseman explained.
Meanwhile, Peter Navarro, a senior trade adviser to Trump, remarked on CNN that a more moderated approach from Trudeau could be beneficial.
Conversely, Daniel Béland, a political science professor at McGill University, opined that Trudeau’s rhetoric likely aimed to project strength in the face of international negotiation tactics often involving intimidation.
“Trump thrives on intimidation, and any sign of weakness on the part of Canada might help pave the way for more economic bullying. So that’s probably why the prime minister is showing resolve, at least in public,” Béland suggested.
Adding to the discourse, Minnesota Governor Tim Walz expressed his discontent over the unfolding trade war, referring to it as “unnecessary and costly.”
“While the President may not value the partnerships that contribute billions of dollars to our economy, Minnesota does,” Walz posted on social media, emphasizing the importance of economic partnerships.
