In a dispute that changes minute by minute, the trade war between Canada and the U.S. had several major developments today.
Prime Minister Justin Trudeau and U.S. President Donald Trump spoke on the phone. It was later announced that the Trump administration will allow a one-month delay for tariffs against automakers.
Trump took to Truth Social to say that he’d spoken to the prime minister. He stated that Trudeau “…largely caused the problems we have with them (Canada) because of his Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States.”
Speaking at the Toronto Region Board of Trade, Foreign Affairs Minister Melanie Joly says, “things are very, very fluid.”
She also confirmed that U.S. Secretary of State Marco Rubio will be attending next week’s G7 meeting of foreign ministers in Charlevoix, Quebec. Rubio’s visit will be the first time a member of the current Trump administration comes to Canada.
In spite of the reprieve for automakers, U.S. Press Secretary Karoline Leavitt said that reciprocal tariffs against those imposed by Canada will still go into effect on April 2nd.
“The president does love tariffs,” Leavitt said. “He said it’s one of his favourite words of the English dictionary, and he believes in tariffs, because they’ll ultimately make America rich again,” she said. “They’re going to raise revenue. They’re going to help us pay down our debt. Most importantly, they’re going to bring American jobs here back home.”
Premier Doug Ford’s office says that it will not be pausing or changing any of the tariff countermeasures it has floated in response to a one-month delay for the auto industry.
“I spoke to the prime minister earlier,” said Ford. “We’re on the same page, zero tariffs, and we are not going to budge,” Ford said. “We aren’t going to buckle down. Let’s move forward to the USMCA deal, or CUSMA deal, or NAFTA, whatever you want to call it, and let’s start moving forward. But we will not budge. Zero tariffs. And that’s it.”
The retaliatory measures from Ontario include ripping up a $100-million deal with Elon Musk’s Starlink internet service, removing U.S. alcohol from LCBO shelves, blocking U.S. companies from participating in billions of dollars-worth of provincial procurement, and going through existing contracts “with a fine-tooth comb” to see what other deals with U.S. companies can be cancelled. Ford has also threatened to slap a 25 per cent export tax on the electricity that Ontario sends to three U.S. states as soon as possible.
Meanwhile, Canadians continue to take a stand against the tariffs and threats of annexation – many by choosing to go elsewhere for March Break. CTV says that Flight Centre reports a year-over-year 40 per cent decline in February bookings to U.S. destinations and says 20 per cent of Canadian travellers who did make U.S. bookings between November and February have since cancelled their trip.
