Prime Minister Justin Trudeau said Thursday that Canada will remain in a trade dispute with the U.S. "for the foreseeable future" unless Washington lifts tariffs on Canadian goods. His comments followed a tense phone call with President Donald Trump, who this week imposed 25% tariffs on most Canadian and Mexican imports and 10% duties on Canadian oil.
Canada responded immediately with counter tariffs on 30 billion worth of U.S. products, a figure that could rise to 155 billion. Trudeau stressed Ottawa would not back down until all U.S. tariffs are removed, calling them "unjustified."
The leaders’ hourlong discussion Wednesday was described by Trudeau as "colorful, but substantive." Trump criticized Canada’s efforts to curb migrants and fentanyl entering the U.S., linking these issues to the tariffs. However, he granted a one month exemption for the auto sector, citing requests from U.S. manufacturers.
Hours after Trudeau’s remarks, Trump announced a pause on many tariffs against Mexico following talks with President Claudia Sheinbaum. U.S. Commerce Secretary Howard Lutnick suggested goods compliant with the USMCA trade pact might also receive a temporary exemption. Trudeau called this a "promising sign" but emphasized tariffs, and Canada’s retaliation, remain active.
The auto exemption offers limited relief for industries intertwined across North America, yet broader tensions persist. Trudeau reiterated Canada’s focus on protecting jobs and industries, while Trump frames tariffs as leverage for policy concessions. With neither side showing willingness to retreat, the standoff risks prolonged economic strain for both nations.