Trudeau Not Willing to Lift Canada's Retaliatory Tariffs if Trump Leaves Some Tariffs on Canada

By Associated Press

Published 2 months ago on

March 5, 2025

Canada takes a hard line on US tariffs, refusing to lift retaliatory measures unless all US tariffs are removed. (AP/Julia Demaree Nikhinson)

Canadian PM Trudeau stands firm on retaliatory tariffs, refusing partial concessions from Trump administration.
US Commerce Secretary hints at possible carveouts in tariff plans, with an announcement expected Wednesday afternoon.
Canada's Finance Minister emphasizes the country's desire for complete removal of tariffs, rejecting partial reductions.

TORONTO — Canadian Prime Minister Justin Trudeau is not willing to lift Canada’s retaliatory tariffs if Trump leaves any tariffs on Canada, a senior government official told The Associated Press

The official confirmed the stance on condition of anonymity as they were not authorized to speak publicly on the matter.

Trump imposed tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. President Donald Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.

Possible Carveouts in US Position

Commerce Secretary Howard Lutnick said there might be carveouts coming — a softening of the U.S. position after Tuesday’s tax hike hurt the stock market, worried consumers and started a trade war.

In a Wednesday interview with Bloomberg Television, Lutnick said that Trump would update his tariff plans with an afternoon announcement, possibly sparing sectors such as autos 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 provided by other countries. That could dramatically increase the tariff rates charged globally while maintaining the risk of a broader tariff.

Lutnick said he would talk on Wednesday morning 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 to expect Trump to announce his decision Wednesday afternoon.

The Canadian government indicated that nothing less than the removal of the tariffs was acceptable.

“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.