Jamie Spencer
Canada will remain in a trade war with the United States for the foreseeable future, Prime Minister Justin Trudeau said on Thursday, just hours before U.S. Treasury Secretary Scott Bessent publicly criticized him.
Escalating Tensions and Tariff Retaliation
Trudeau confirmed that Canada would continue discussions with senior Trump administration officials to seek the removal of U.S. tariffs on Canadian imports.
“I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future,” Trudeau told reporters in Ottawa.
In response to Washington’s measures, Canada has imposed 25% tariffs on C$30 billion of U.S. imports. Trudeau stated these countermeasures would remain until the Trump administration lifts its trade restrictions.
U.S. Treasury Secretary’s Sharp Criticism
At an event in New York, Bessent expressed his frustration with Canada’s retaliation, making blunt remarks about Trudeau.
“If you want to be a numbskull like Justin Trudeau and say ‘Oh we’re going to do this,’ then tariffs are going to go up,” Bessent said.
A Canadian government source later commented that Washington was reacting negatively to Ottawa’s firm stance on retaliation.
Trudeau-Trump Phone Call
Trudeau and President Donald Trump held a 50-minute phone conversation on Wednesday, discussing trade tensions and border issues.
“It was a colorful call. It was also a very substantive call,” Trudeau said, adding that while discussions were ongoing, no resolution had been reached.
One major topic was Canada’s potential delay of a second round of 25% tariffs on C$125 billion worth of U.S. goods, currently set to take effect in less than three weeks.
Temporary Tariff Exemptions for Automakers
In a partial concession, the White House announced that U.S. tariffs on Canadian and Mexican automakers would be suspended for one month as long as they comply with existing free trade agreements.
“Any carve-outs that support any workers in Canada, even if it’s just one industry or another, are going to be a good thing,” Trudeau said.
Trudeau’s Final Days in Office
Trudeau is set to step down once the ruling Liberal Party selects a new leader on Sunday. His tenure has been marked by strained relations with Trump, and he took a parting shot at the president’s business background.
“A win-lose between us would actually be worse for them than a win-win. That’s true in international trade, in relations between nation-states,” Trudeau said.
He added, “It perhaps is not true in real estate deals, where a win-lose is probably better for someone who is experienced in business deals than a win-win.”
