LDN - Business

Trudeau not willing to lift Canada's retaliatory tariffs if Trump leaves some tariffs on Canada

[March 06, 2025] By ROB GILLIES

TORONTO (AP) — Canadian Prime Minister Justin Trudeau is unwilling to lift Canada’s retaliatory tariffs on the United States if President Donald Trump leaves any U.S. tariffs on Canada, a senior government official told The Associated Press on Wednesday.

The official confirmed Trudeau's stance on the condition of anonymity because the person was not authorized to speak publicly on the matter. The official said Trump and Trudeau spoke by phone around midday.

Other Canadian officials publicly echoed Trudeau's position.

“We’re not interested in meeting in the middle and having some reduced tariff. Canada wants the tariffs removed,” Canadian Finance Minister Dominic LeBlanc told the Canadian Broadcasting Corporation.

Ontario Premier Doug Ford, the leader of Canada's most populous province, agreed.

“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 said.

Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.

A day after the new tariffs took effect, Trump said he would grant a one-month exemption for U.S. automakers. The announcement came after Trump spoke Wednesday with leaders of Ford, General Motors and Stellantis, the parent company of Chrysler and Jeep. His press secretary said Trump told the chief executives to move auto production to the U.S. to avoid tariffs.

“A number of industries have reached out to us to ask us for exemptions to the tariffs,” Vice President JD Vance said.

U.S. Commerce Secretary Howard Lutnick said exceptions might be considered — a statement that reflected a softening of the American position after the import taxes hurt the stock market and worried consumers.

Ford took note of the anxiety, saying the American people "woke up two days ago when the market was crashing." Americans "are voicing their opinion. The CEOs, the market tanked. That’s what really caught his (Trump's) attention.”

Some Canadian provinces banned the sale of American booze, including Manitoba, whose leader, Wab Kinew, mocked Trump by signing a “beautiful” order that officially removes all U.S. liquor from stores in his province.

Canadian Foreign Minister Mélanie Joly said they are not interested in going “through this psychodrama every 30 days so.”

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An employee removes American-made wine from their shelves at Bishop's Cellar in Halifax on Wednesday, March 5, 2025. (Darren Calabrese /The Canadian Press via AP)

“There’s too much unpredictability and chaos coming of the White House right now,” Joly said. “He wants to weaken us and once he has weakened us possibly try to annex Canada. He has said this in the past.”

In an interview Wednesday with Bloomberg Television, Lutnick said: “There are going to be tariffs. Let’s be clear.” But he also said the president was considering offering relief to some sections of the market until April 2.

On April 2, Trump plans to announce what he calls “reciprocal” tariffs to match the tariffs, taxes and subsidies from other countries. That could dramatically increase the tariff rates charged globally while maintaining the risk of broader tariffs.

If the tariffs are not removed, Ford told the AP, the American and Canadian auto industries will last approximately 10 days before they start shutting down assembly lines in the U.S. and Ontario.

“People are going to lose their jobs,” Ford said.

Lutnick said he would talk Wednesday with Trump about the possible options regarding Canada and Mexico, saying that both countries are working to address the U.S. president’s concerns about drug trafficking.

Nelson Wiseman, professor emeritus at the University of Toronto, noted that Trudeau called the tariffs “very dumb” at a news conference Tuesday and said Trudeau’s tough talk resonated well with Canadians.

“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 said.

Peter Navarro, a senior trade adviser to Trump who said he watched Trudeau’s news conference, told CNN on Wednesday that it would be useful if the prime minister “toned stuff down.”

But Daniel Béland, a political science professor at McGill University in Montreal, said Trudeau's comments were likely intended to project strength.

“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 said.

Minnesota Gov. Tim Walz said he spoke with the premiers of Manitoba and Ontario, calling it an "unnecessary and costly trade war."

“While the President may not value the partnerships that contribute billions of dollars to our economy, Minnesota does,” Walz posted on social media.

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