TORONTO — Canadian Prime Minister Justin Trudeau is unwilling to lift Canada’s retaliatory tariffs on the United States if President Donald Trump leaves any U.S. tariffs on Canada, a senior government official told The Associated Press on Wednesday.
The official confirmed Trudeau’s stance on the condition of anonymity because they were not authorized to speak publicly on the matter. The official said Trump and Trudeau spoke by phone around midday.
Other Canadian officials publicly echoed Trudeau’s position.
“We’re not interested in meeting in the middle and having some reduced tariff. Canada wants the tariffs removed,” Canadian Finance Minister Dominic LeBlanc told the Canadian Broadcasting Corporation.
Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.
U.S. Commerce Secretary Howard Lutnick said exceptions might be considered — a statement that reflects a softening of the American position after Tuesday’s tax hikes hurt the stock market and worried consumers.
In an interview Wednesday with Bloomberg Television, Lutnick said Trump could exempt sectors such as automobiles from the import taxes.
“There are going to be tariffs, let’s be clear,” Lutnick said. “But what he’s thinking about is which sections of the market that can maybe — maybe — he’ll consider giving them relief until we get to, of course, April 2.”
On April 2, Trump plans to announce what he calls “reciprocal” tariffs to match the tariffs, taxes and subsidies from other countries. That could dramatically increase the tariff rates charged globally while maintaining the risk of broader tariffs.
If the tariffs are not removed, Ontario Premier Doug Ford told AP, the American and Canadian auto industries will last approximately 10 days before they start shutting down assembly lines in the U.S. and Ontario.
“People are going to lose their jobs,” Ford said.
Lutnick said he would talk Wednesday with Trump about the possible options regarding Canada and Mexico, saying that both countries are working to address the U.S. president’s concerns about drug trafficking. Lutnick said he expected Trump to announce a decision Wednesday afternoon.
Nelson Wiseman, professor emeritus at the University of Toronto, noted that Trudeau called the tariffs “very dumb” at a news conference Tuesday and said Trudeau’s tough talk resonated well with Canadians.
“Canada had a choice: to go along with Lutnick’s proposal or to reject it. The government opted for the latter, but that may be a negotiating ploy. It is playing well with Canadians. They are very angry with Trump,” Wiseman said.
Peter Navarro, a senior trade adviser to Trump who said he watched Trudeau’s news conference, told CNN on Wednesday that it would be useful if the prime minister “toned stuff down.”
“Trump thrives on intimidation and any sign of weakness on the part of Canada might help pave the way for more economic bullying so that’s probably why the prime minister is showing resolve, at least in public,” said Daniel Béland, a political science professor at McGill University in Montreal.