Canada’s Prime Minister has unexpectedly reversed his stance following Donald Trump’s announcement to temporarily halt tariffs on certain countries.
Since President Trump’s return to the White House in January, Canada and the US have been caught in a strained trade conflict. Trump imposed 25 percent tariffs on Canadian goods, citing illegal immigration and drug issues as reasons for the sanctions. However, he later agreed to a 30-day suspension after Canada threatened retaliatory tariffs.
Ontario Premier Doug Ford suggested retaliating by increasing electricity prices for Americans or cutting off power to 1.5 million people in states like New York, Michigan, and Minnesota. Canada also planned to impose taxes amounting to $20.7 billion USD.
Despite this, as of March 4, Trump proceeded with his plan, but with a reduced 10 percent levy on Canadian energy. He also announced that “reciprocal” tariffs would apply to 60 other countries starting April 2.
During a speech in the White House’s Rose Garden on ‘Liberation Day’, Trump mentioned that many countries would face a minimum 10 percent tariff. This included higher tariffs of 34 percent on China, 20 percent on EU goods, and 46 percent on Vietnam, among others he labeled as “worst offenders.”
However, Canada and Mexico were notably exempt from this list, as the White House clarified that USMCA-compliant imports would remain duty-free, except for certain Canadian products like vehicles, car parts, steel, and aluminum, which would still face the 25 percent tariff.
The Trump administration has indicated that Canadian tariffs could drop from 25 percent to 12 percent if Canada adheres to Trump’s demands on immigration and drug trafficking.
Recently, Trump has introduced a 90-day delay on some of the higher tariffs for certain countries, but the situation for Canada remains unchanged.
New Canadian Prime Minister Mark Carney initially responded defiantly to the tariffs, declaring, “In this trade war, like in hockey and soccer, we will win. We didn’t ask for this fight, but Canadians are always ready when someone drops the gloves.”
Previously, Carney asserted, “I reject any attempts to weaken Canada, to wear us down, to break us so that America can own us, that will never happen. Our response to these latest tariffs is to fight, is to protect and to build.”
However, following Trump’s pause, the Liberal Party leader softened his tone, expressing on Twitter that the news is a ‘welcome reprieve for the global economy.’
He then promised to work towards a ‘new economic and security relationship’ with the US.
“As President Trump and I have agreed, the U.S. president and the Canadian prime minister will commence negotiations on a new economic and security relationship immediately following the Federal election,” he wrote. This election is set for April 28.
Carney also highlighted that the US’ bilateral negotiations with various countries will fundamentally alter the global trading system. He emphasized that Canada ‘must also continue to deepen its relationships with trading partners that share our values.’
He concluded by stating, “This election is importantly about who can best fight for Canadian families, workers, and businesses at the negotiating tables with the United States and other potential partner countries. The stakes have never been higher.”