Prime Minister Justin Trudeau is not open to lifting Canada’s full package of retaliatory tariffs if US President Donald Trump leaves any tariffs on Canada in place, according to a senior Canadian government official.
The official said Trudeau’s government is cool to the idea of a “middle ground” settlement in the trade war floated by US Commerce Secretary Howard Lutnick. In particular, any scenario where Canada has to fully rescind its retaliatory tariffs in return for a partial rollback of American tariffs will be rejected by Trudeau, the official said.
The official did not comment on whether Canada would scale back some of its retaliation if Trump pulls back on some US tariffs.
After Trump imposed 25% tariffs on all Canadian imports to the US, with the exception of 10% tariffs on energy products, Trudeau immediately responded with levies targeting C$30 billion ($20.8 billion) in American products including cosmetics, tires, fruit and wine.
Canada’s counter-tariffs will expand to an additional C$125 billion in items from US exporters later in March. The second phase would hit American-made vehicles as well as aluminum and steel.
Lutnick told Bloomberg TV earlier on Wednesday that Trump is considering tariff relief for particular sectors, possibly including automotive.
“There are going to be tariffs — let’s be clear — but what he’s thinking about is which sections of the market that maybe he’ll consider giving them relief until we get to, of course, April 2,” Lutnick said. “I think it is going to be in the middle somewhere.”
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