TORONTO (AP) — A highly confidential source from within the Canadian government has revealed that Canadian Prime Minister Justin Trudeau is standing firm on his decision not to lift Canada’s retaliatory tariffs as long as President Trump maintains any tariffs on Canada. The source, who spoke to The Associated Press on the condition of anonymity due to lack of authorization to speak publicly on the issue, confirmed this unwavering stance.
President Trump’s imposition of tariffs against the United States’ three major trading partners triggered immediate retaliatory measures from Mexico, Canada, and China, causing turmoil in financial markets. Trump slapped 25% tariffs on Mexican and Canadian imports, with a reduced levy of 10% specifically targeting Canadian energy.
Commerce Secretary Howard Lutnick hinted at the possibility of exemptions being introduced, signaling a potential softening of the U.S.’s position following the negative impacts of Tuesday’s tariff hike on the stock market and consumer confidence, sparking fears of a trade war.
In an interview with Bloomberg Television on Wednesday, Lutnick disclosed that Trump was set to announce updates to his tariff plans later in the day, potentially exempting certain sectors like automobiles from the import taxes. Lutnick emphasized that while tariffs were inevitable, the focus was on identifying market segments that could be granted temporary relief until April 2.
April 2 marks the scheduled announcement by Trump of what he refers to as “reciprocal” tariffs aimed at matching the tariffs, taxes, and subsidies offered by other nations. Such a move could lead to a significant escalation in global tariff rates while heightening the risk of a broader trade conflict.
Lutnick indicated ongoing discussions with Trump regarding possible approaches concerning Canada and Mexico, highlighting efforts by both countries to address the U.S. president’s concerns regarding drug trafficking. He anticipated Trump unveiling his decision later on Wednesday.
The Canadian government has made it clear that nothing less than the complete removal of tariffs would be deemed acceptable. “We’re not open to compromising and reaching a partial reduction in tariffs. Canada’s stance is clear – the tariffs must be lifted,” stated Canadian Finance Minister Dominic LeBlanc in an interview with the Canadian Broadcasting Corporation.
