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Canada refuses to lift tariffs despite Trump’s postponement

By isabelle // 2025-03-11

• Canada maintains $30 billion retaliatory tariffs on U.S. goods despite Trump delaying 25% duties on Canadian and Mexican imports to protect the U.S. auto industry.
• Incoming Canadian PM Mark Carney vows to uphold tariffs until the U.S. shows "respect" and commits to fair trade practices.
• Trump postponed tariffs after U.S. automakers warned of economic fallout, citing national security concerns under the USMCA trade agreement.
• Outgoing PM Justin Trudeau emotionally defended Canada’s stance, calling the U.S. trade actions "unjustified," while Trump criticized Trudeau on social media.

In a high-stakes trade standoff, Canada is refusing to lift its retaliatory tariffs on $30 billion worth of American imports, even after President Donald Trump postponed his planned 25% duties on Canadian and Mexican goods. The delay, initially set to take effect on March 4, was granted to protect the U.S. auto industry and allow time for negotiations. However, Canada’s incoming Prime Minister Mark Carney has vowed to maintain the tariffs until the U.S. demonstrates “respect” and commits to fair trade practices. The escalating dispute underscores the fragile state of U.S.-Canada relations and raises questions about the future of North American trade.

Trump’s tariff delay and Canada’s response

President Trump announced the 25% tariffs in February, citing concerns over border security and the drug trade. The duties were delayed after Trump met with U.S. automakers, who warned of the economic fallout. The White House emphasized that the suspension was necessary to safeguard the U.S. auto industry, which it deemed vital to national security. The delay applied to imports compliant with the U.S.-Mexico-Canada Agreement (USMCA), which governs a significant portion of trade between the three nations. Despite the reprieve, Canada has maintained its retaliatory tariffs on $30 billion worth of U.S. goods, including steel, aluminum, and agricultural products. Canadian Finance Minister Dominic LeBlanc called the decision a “first step” toward resolving the dispute but stressed that Canada would not back down. ““We want to get to a position that we were in two weeks ago, where there are no tariffs applied to the trade between Canada and the United States. It’s a first step,” LeBlanc said. “It’s an important step, but we’re not at the end of the road.”

Trudeau’s emotional stand and Trump’s criticism

The tariff dispute has strained relations between Trump and outgoing Canadian Prime Minister Justin Trudeau. During a recent phone call, Trump reportedly used profanity when discussing Canada’s dairy industry protections, while Trudeau remained composed. In a public address, Trudeau became emotional, declaring that Canada would stand firm against what he called an “unjustified and unjustifiable trade war.” “We are in a moment right now where Canada has a very, very strong bargaining position,” Trudeau said. “Canadians are so united and unequivocal about standing up for our country, standing up for our fellow citizens, and being very, very firm.” Trump, meanwhile, took to social media to criticize Trudeau, accusing him of leveraging the tariff issue for political gain. “Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!” Trump posted.

Carney’s hardline stance on trade

As Trudeau prepares to step down, incoming Prime Minister Mark Carney has signaled a tough approach to the trade dispute. Carney, a former governor of the Bank of Canada and the Bank of England, won a landslide victory to lead Canada’s Liberal Party and will soon take office. In his acceptance speech, Carney vowed to maintain Canada’s retaliatory tariffs until the U.S. demonstrates respect and commits to fair trade. “The Americans want our resources, our water, our land, our country ... if they succeed, they will destroy our way of life,” Carney said. “My government will keep our tariffs on until the Americans show us respect.” Carney’s stance reflects a broader shift in Canadian policy as the nation seeks to protect its economic interests amid growing tensions with the U.S. The Trump administration has threatened to reimpose tariffs on April 2, setting the stage for a potential escalation in the trade war. The ongoing tariff dispute highlights the fragility of U.S.-Canada relations and the challenges of navigating North American trade dynamics. While Trump’s delay offers a temporary reprieve, Canada’s refusal to lift its tariffs signals a hardening of positions on both sides. As Mark Carney prepares to take office, his commitment to maintaining tariffs underscores Canada’s determination to defend its economic interests. With the April 2 deadline looming, the coming weeks will be critical in determining whether the two nations can resolve their differences or if the trade standoff will deepen further. Sources for this article include: YourNews.com Reuters.com Bloomberg.com

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