Trade relations between the U.S. and Canada have been under strain since President Donald Trump imposed tariffs on Canadian imports.
However, following a 50-minute phone conversation with Prime Minister Justin Trudeau, Trump has decided to suspend these tariffs for one month.
Tariffs on Hold Amid Industry Pressure
As reported by Wiadomości WP, the decision to pause tariffs on Canadian and Mexican auto exports came after major car manufacturers—including Stellantis, Ford, and General Motors—urged the administration to reconsider.
The White House confirmed the suspension, though Commerce Secretary Howard Lutnick denied that it was a policy reversal, insisting that Canada and Mexico had failed to prevent fentanyl trafficking into the U.S.
Trudeau responded firmly, stating that there is “no justification for the tariffs” based on drug smuggling concerns.
He highlighted Canada’s $1.3 billion CAD investment in border security and new cooperation measures among law enforcement agencies.
Canada Retaliates with Trade Measures
Despite the temporary tariff suspension, Canada has already escalated the dispute by filing a complaint with the World Trade Organization (WTO) and imposing a 25% tariff on $155 billion CAD worth of U.S. exports.
Finance Minister Dominic LeBlanc made it clear that Canada has no intention of reducing these countermeasures.
Additionally, Innovation Minister François-Philippe Champagne announced stricter reviews of foreign investments, citing concerns that economic instability could make Canadian firms vulnerable to hostile takeovers.
Political Tensions and Uncertain Future
Trump also took a jab at Trudeau, questioning why the prime minister was uncertain about the timing of Canada’s next election.
Trudeau, who has announced plans to step down as leader of the Liberal Party, has left the decision on potential early elections to his successor. The party is expected to announce a new leader this Sunday.
While the tariff pause offers a temporary relief to the auto industry, the broader trade conflict between the U.S. and Canada remains unresolved, with both nations standing firm on their positions.
