This comes after the Big Three automakers secured a one-month exemption
Stellantis, Ford, and General Motors, the Big Three automakers, secured a one-month tariff exemption on Wednesday after conversing with President Donald Trump, but Prime Minister Justin Trudeau didn't get such assurance for Canada.
Trump granted the exemption for vehicles complying with the Canada-U.S.-Mexico Agreement (CUSMA) after the Big Three requested relief.
“Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with (CUSMA), the president is giving them an exemption for one month so they are not at an economic disadvantage,” said White House Press Secretary Karoline Leavitt. She added that the goal is to give automakers time to “shift production here to the United States of America where they will pay no tariff.”
Trump followed through Tuesday on his threat to impose sweeping tariffs on Canadian and Mexican imports, prompting Trudeau to announce retaliatory tariffs on $30 billion worth of U.S. goods, with another $125 billion to follow in 21 days. Canadian imports now face a 25% tariff, except for energy taxed at 10%.
Foreign Affairs Minister Mélanie Joly told the Toronto Region Board of Trade on Wednesday that Canada could still leverage exports that the U.S. relies on, such as uranium, potash and energy. “We haven’t put that on the table yet,” she said, adding, “We need to make sure that Canadians are on board and that premiers are on board.”
Alberta Premier Danielle Smith said her province's oil and gas exports are a "trump card" in the trade dispute but opposed an export tax on energy. Meanwhile, Saskatchewan Premier Scott Moe said 85 to 90 percent of U.S. imports of potash come from his province.
Joly talked with Secretary of State Marco Rubio on Wednesday and said Finance Minister Dominic LeBlanc called Commerce Secretary Howard Lutnick as well. She said Trump is the ultimate decision-maker in Washington.
Trudeau also spoke with Trump, Vice President JD Vance, and Lutnick, but no details were shared.
“There’s too much unpredictability and chaos coming out of the White House right now,” Joly said, calling tariffs "completely unjustified" and urged Canadians to "do their part" by buying Canadian products and vacationing in Canada or elsewhere in the world.
Trump claimed Trudeau called to "ask what could be done about tariffs” but insisted Canada's fentanyl measures weren't enough.
Canadian officials believe the tariffs are meant to pressure Canada and Mexico ahead of next year’s CUSMA review.
