The trade war between the U.S. and Canada escalated this week, but automakers caught a temporary lifeline Wednesday. President Donald Trump, who unleashed 25 per cent tariffs on Canadian goods and 10 per cent on energy at 12:01 AM Tuesday, granted a 30-day reprieve for the auto sector after talks with industry giants. Canada hit back fast with its own tariffs, prompting Trump to pledge a counter-strike.
Prime Minister Justin Trudeau and Trump spoke by phone Wednesday, grappling with the spiraling tensions. Details of their call remain sparse, but the stakes are clear.
Nova Scotia Premier Tim Houston didn’t hold back, slamming Trump at a Halifax news conference. “He’s a shortsighted bully swinging power without a thought for the chaos he’s dumping on Canadians and Americans,” Houston said. “Trump and his yes-men started this war—we didn’t.”
Ontario Premier Doug Ford, meanwhile, scoffed at the auto delay as too little. “I told the PM we’re on the same page: zero tariffs or nothing,” he said after a Queen’s Park cabinet meeting. “No buckling. Let’s get back to USMCA, CUSMA, NAFTA—whatever you call it—and move forward. Zero tariffs, period.”
The auto exemption buys breathing room, but with Canada’s broader retaliation in play and Trump’s tit-for-tat threats looming, the trade battle’s far from over.