Canada and the U.S. are stuck in a heated trade war, and it’s not cooling down anytime soon. Canadian Prime Minister Justin Trudeau made it clear that this fight — started by the U.S. — is far from over.
Meanwhile, President Trump is making things worse, piling on tariffs and making bold claims about Canada’s economy. Both sides are holding their ground, turning this into a serious economic and political standoff.
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Trudeau says the trade war is not ending anytime soon
“Canada will be in a trade war with the United States for the foreseeable future,” Prime Minister Justin Trudeau said on Thursday.
“I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future,” he told reporters in Ottawa.
Canada imposes tariffs in response to U.S. actions
Right away, Canada hit back with 25% tariffs on C$30 billion worth of U.S. imports. Trudeau made it clear that these tariffs would stay until the Trump administration backed down.
U.S. government reacts with insults and threats
The U.S. wasn’t happy about Canada’s move. Bessent didn’t hold back, saying at an event in New York, “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.”
Trudeau and Trump have a tense phone call
The tension was obvious when Trudeau and Trump had a 50-minute phone call on Wednesday. Trump accused Canada of not doing enough to stop fentanyl and illegal migrants from crossing the border.
Trudeau called it “a colorful call” but said it was also “very substantive.” He added that while discussions were happening, there was nothing new to announce.
Canada considers delaying additional tariffs but stands firm
One thing being discussed is whether Canada will delay the next round of 25% tariffs on another C$125 billion worth of U.S. imports. These are supposed to take effect in less than three weeks, but no final decision has been made.
Trump temporarily exempts Canadian automakers from tariffs
The White House announced on Wednesday that “Trump will exempt automakers from tariffs on Canada and Mexico for one month as long as they comply with existing free trade rules.”
Trudeau saw this as a small win, saying, “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 criticizes Trump’s real estate mindset
With Trudeau set to step down once the ruling Liberal Party picks a new leader this Sunday, he took a final jab at Trump, who built his reputation in real estate.
“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,” he said.
“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.”
Trump mocks Trudeau with a new nickname
Trump loves giving people nicknames, and Trudeau isn’t an exception. He’s been calling him “Governor” instead of Prime Minister, and he’s not stopping anytime soon.
Taking to his Truth Social platform, Trump wrote: “Please explain to Governor Trudeau, of Canada, that when he puts on a retaliatory tariff on the U.S., our reciprocal tariff will immediately increase by a like amount!”
Trudeau responds to Trump’s accusations
“Today, the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said, as per AP.
He then addressed Trump directly: “I want to speak directly to one specific American, Donald. It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.”
The fentanyl debate and economic sabotage accusations
Trump defended his tariff hikes by blaming Canada for what he called a “growing production of fentanyl” that’s sneaking into the U.S. and supposedly killed “9.8 million Americans” last year.
Trudeau pushed back hard, saying “less than one percent of the fentanyl intercepted at the US border comes from Canada” and that the country has “worked relentlessly to address this scourge that affects Canadians and Americans alike.”
He also accused Trump’s administration of trying to “provoke a total collapse of the Canadian economy because that will make it easier to annex us.”
As for the idea that Canada could become another U.S. state, Trudeau shut that down fast: “That is never going to happen. We will never be the 51st state. This is a time to hit back hard and to demonstrate that a fight with Canada will have no winners.”
Hard to say where this all ends, but one thing’s for sure: neither side looks ready to back down.
