Trudeau: US-Canada Trade War Will Continue for ‘Foreseeable Future’/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Canadian Prime Minister Justin Trudeau expects ongoing trade tensions with the U.S. after President Donald Trump imposed sweeping tariffs on Mexican and Canadian imports. While the U.S. has hinted at delaying some tariffs for a month, Trudeau insists that Canada’s retaliatory measures will stay in place until all tariffs are lifted. The dispute threatens key industries, including automobiles, energy, and agriculture, as Canada moves to reduce dependence on the U.S. market.
Trudeau: US-Canada Trade War to Continue as Tariff Battle Heats Up
Key Points at a Glance
- Trudeau welcomes possible delay of some U.S. tariffs but says Canada’s retaliation remains.
- Trump’s tariffs hit Canada and Mexico with 25% duties on imports, excluding energy at 10%.
- Commerce Secretary Lutnick suggests a 30-day tariff delay on goods covered under USMCA.
- Canada’s retaliatory tariffs target $30B in U.S. goods, with $125B more planned in 3 weeks.
- Trade war threatens key sectors, including autos, energy, and agriculture.
- Canada reduces U.S. reliance by removing inter-provincial trade barriers.
Trudeau: ‘We Will Not Back Down’ in U.S. Trade War
Trade War Deepens Despite Possible Tariff Delay
Canadian Prime Minister Justin Trudeau reaffirmed his commitment to retaliatory tariffs against the U.S., even as Washington signals a possible delay in import taxes on Canadian goods.
In a heated response to Trump’s new trade policies, Trudeau acknowledged that ongoing negotiations have led to talks of a one-month suspension of tariffs, but Canada will not back down unless the U.S. removes its restrictions completely.
“We will not be backing down from our response tariffs until such a time as the unjustified American tariffs on Canadian goods are lifted,” Trudeau said Thursday.
Trump’s Tariffs Shake Markets, Trudeau Responds
On Tuesday, Trump ignited a new trade war by slapping 25% tariffs on all imports from Mexico and Canada, except for a 10% tax on Canadian energy. The move sparked immediate retaliation from both countries, rattling global markets.
However, U.S. Commerce Secretary Howard Lutnick hinted in a CNBC interview Thursday that Trump may suspend most tariffs for 30 days on products covered under the United States-Mexico-Canada Agreement (USMCA).
Lutnick estimated that over half of U.S. imports from Canada and Mexico could qualify for exemption. “For companies whose products comply with USMCA, you will get a reprieve now,” he said.
Trudeau acknowledged the discussions, calling them “a promising sign” but refusing to ease Canada’s countermeasures without an official agreement.
Canada Hits Back with Billions in Tariffs
In response to Trump’s tariffs, Canada has imposed $30 billion (US$21 billion) in counter-tariffs on U.S. products including orange juice, peanut butter, coffee, footwear, and appliances. An additional $125 billion (US$87 billion) in retaliatory tariffs is set to hit American exports in three weeks, targeting:
- Electric vehicles
- Fruits and vegetables
- Dairy, beef, and pork
- Electronics and trucks
- Steel and aluminum
Trudeau made clear that these retaliatory tariffs will not be lifted unless Trump removes all duties on Canadian goods.
Economic Fallout and Industry Impact
The trade war threatens key industries, particularly automobiles, energy, and agriculture.
- Autos: U.S. automakers lobbied for an exemption, fearing price hikes and supply chain disruptions. Trump granted a 30-day exemption for car manufacturers on Wednesday after meeting with executives from Ford, General Motors, and Stellantis.
- Energy: Despite Trump’s claims that the U.S. does not need Canada, nearly a quarter of America’s daily oil consumption comes from Canada. 60% of U.S. crude oil imports and 85% of electricity imports originate from Canada.
- Steel & Minerals: Canada remains America’s top foreign supplier of steel, aluminum, and uranium—essential for U.S. defense and infrastructure projects. The Pentagon relies on Canada’s 34 critical minerals and metals, further complicating the economic standoff.
Canada Moves to Reduce U.S. Dependence
“Canada must be prepared for the long haul,” said Trudeau. “While we continue to negotiate, we are also working to strengthen our internal economy and expand trade relationships beyond the United States.”
Looking Ahead: Will the Trade War End?
While U.S. officials suggest a temporary reprieve, Trudeau remains skeptical of Trump’s unpredictability. The next 30 days will be critical in determining whether the tariff war escalates or de-escalates.
For now, Canada’s retaliatory measures stand firm, and businesses on both sides of the border brace for further economic turbulence.
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