The Canada-US trade war is here to stay, Prime Minister Justin Trudeau warned on Thursday, declaring that even with exemptions for certain sectors, the economic standoff between the two neighbors will last “for the foreseeable future.” His remarks came after what he described as a “colorful but constructive” conversation with US President Donald Trump earlier this week.
“Our goal remains to get these tariffs, all tariffs, removed,” Trudeau said, a day after a tense phone call with Trump. The prime minister didn’t hold back, calling the trade war “dumb” and “unjustified,” even as he acknowledged that discussions with Washington were ongoing.
Tensions spiked Tuesday when Trump launched a fresh trade offensive, imposing 25% tariffs on imports from Canada and Mexico, while Canadian energy exports were hit with a 10% levy. The move, which sent financial markets into turmoil, prompted immediate retaliation from US trading partners.
The White House attempted damage control on Wednesday, offering a one-month exemption for US automakers. Trump, in talks with the CEOs of Ford, General Motors, and Stellantis, urged them to shift production to the US to escape the tariffs—further fueling tensions with Canada.
Despite the diplomatic back-and-forth, Trudeau made it clear that Ottawa “will not be backing down” until the US removes its duties on Canadian goods. But with Trump doubling down and Trudeau refusing to blink, this trade war is far from over—and both economies are bracing for impact.