OTTAWA — U.S. President Donald Trump has imposed tariffs on imports from Canada and Mexico — a 25 per cent across-the-board levy, with a lower 10 per cent charge on Canadian energy — triggering a continental trade war.
Canada has responded with 25 per cent retaliatory tariffs on $30 billion worth of American products and will expand them to cover another $125 billion in U.S. goods in 21 days.
Here is the latest news (all times eastern):
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4:50 p.m.
The Canadian Vehicle Manufacturers' Association, which represents Stellantis, Ford and GM, says it "welcomes" the exemption.
"We look forward to working on a permanent solution that recognizes the integration of the North American market and reinforces the strong standards established in the USMCA/CUSMA," said the association's president and CEO Brian Kingston in a media statement.
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4:27 p.m.
Canadian officials expressed frustration about the tariffs during a panel discussion of the Canada-U.S. Interparliamentary Group at the Wilson Centre in Washington on Wednesday.
MP Irek Kusmierczyk of Windsor—Tecumseh, whose riding is deeply integrated in the American market, told Bill Huizenga, a Republican congressman for Michigan, that his Ontario constituents feel betrayed.
Windsor West MP Brian Masse said Wednesday’s offer of an exemption is “not acceptable."
Masse said a billion-dollar auto plant cannot move in 30 days and the exemption provides no certainty to the industry.
Huizenga said he spoke with U.S. Commerce Secretary Howard Lutnick repeatedly Tuesday, adding many Americans support Trump’s moves.
Canadian officials believe the tariffs are meant to rattle Canada and Mexico ahead of the continental trade pact’s mandatory review next year.
Niagara Centre MP Vance Badawey said if that is Trump’s ultimate goal, Americans should just start negotiating and stop imposing tariffs.
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4:10 p.m.
Foreign Affairs Minister Mélanie Joly says she spoke with U.S. Secretary of State Marco Rubio by phone today, and Finance Minister Dominic LeBlanc spoke with his counterpart, Commerce Secretary Howard Lutnick.
Joly told the Toronto Region Board of Trade that it's not clear what U.S. President Donald Trump wants.
She says only the American people can change Trump's mind, "so our job collectively is to make sure that the American people realize this is a tax on them."
Joly says polls suggest Canada is winning the "communications battle" over the tariffs.
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4:02 p.m.
U.S. Democrat Senators Jeanne Shaheen, ranking member of the Foreign Relations Committee, and Michael Bennet point out in a joint statement that Trump's tariffs target the countries he negotiated the Canada-U.S.-Mexico Agreement with during his first term.
They say Trump is breaking the very deal he negotiated, "begging the question: How can any foreign leader trust this President to negotiate in good faith?"
The statement says the tariffs will sow greater doubts about America's reliability as a trade and diplomatic partner going forward
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4:00 p.m.
Saskatchewan Premier Scott Moe says the province will stop purchasing and halt the sale of American booze.
Moe says also government procurement will focus on prioritizing Canadian suppliers.
He says the goal is to greatly lower or completely eliminate U.S. participation in procurement on capital projects.
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3:35 p.m.
Matthew Holmes, chief of public policy at the Canadian Chamber of Commerce, says Canada has seen Trump waver on tariffs before. Holmes says in a statement that Trump puts tariffs in place and then doles out exemptions one at a time.
Holmes says that's not how a long-lasting trade alliance is built.
Holmes says it's important to stop drug trafficking but it appears there are more eggs being smuggled into the U.S. from Canada right now than fentanyl.
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3:30 p.m.
Alberta Premier Danielle Smith says her province will no longer buy American alcohol and video lottery terminals in response to the ongoing tariff row with the United States.
She says Alberta won't play what she calls its "trump card" by reducing or levying oil and gas exports heading south.
Smith says doing so would only rebound on Canadian consumers, because the U.S. would respond in kind.
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3:25 p.m.
Cattle industry groups say they're looking to diversify markets, process more domestically and seek improvements to government support programs in response to U.S. tariffs.
Curtis Vander Hayden of the Alberta Cattle Feeders' Association says the 25 per cent levy means $10 to $12 million out of the pockets of feedlot operators every week.
Dennis Laycraft of the Canadian Cattle Association says members of his group are currently in Asia looking to build relationships with customers, but the United States will always be vital.
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1:53 p.m.
Ontario Premier Doug Ford says he and Prime Minister Justin Trudeau are on the same page and insist Canada will not compromise in the trade war started by U.S. President Donald Trump.
Ford suggests Canada will not be removing any of its retaliatory tariffs unless all American tariffs are removed.
He says a temporary reprieve is not enough to convince Canada or Ontario to end their retaliatory measures.
Ontario's response so far includes removing all American products from liquor stores and banning U.S. companies from $30 billion worth of procurement contracts.
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1:35 p.m.
During a White House press briefing after Trump’s speech to Congress, Press Secretary Karoline Leavitt reads a statement from Trump saying he spoke with the big three auto dealers and they are going to get a one-month tariff exemption for any autos coming through the Canada-U.S.-Mexico Agreement on trade.
When asked what else Canada needs to do to lift the tariffs — since less than one per cent of fentanyl entering the U.S. is found at the northern border — she says Canada is still allowing fentanyl to cross the border and there must be consequences.
Reciprocal tariffs are set to go into effect April 2.
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1:10 p.m.
In a social media post on Wednesday, Trump says he had a phone conversation with Prime Minister Justin Trudeau to discuss the tariffs.
Trump again cites a high death toll from fentanyl he says is continuing to come across the borders with Canada and Mexico.
“He [Trudeau] said that it’s gotten better, but I said, ‘that’s not good enough.’ The call ended in a ‘somewhat’ friendly manner!” he posted.
He also says Trudeau is using this issue “to stay in power.”
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11:45 a.m.
Bob Rae, Canada’s ambassador to the United Nations, says U.S. President Donald Trump sees the world in a “totally binary way.”
Rae says Trump believes that “what’s good for me is bad for you, what’s good for you is bad for me.”
Rae says it’s a win-lose proposition and a terrible mistake, adding protectionist policies hurt global trade.
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11:30 a.m.
A group of 52 associations representing the entire three-tier chain of the U.S. alcohol industry is urging U.S. President Donald Trump to lift tariffs on Mexican and Canadian distilled spirits and wine.
The Toasts Not Tariffs Coalition says it is greatly troubled that U.S. alcohol products are being removed from Canadian stores.
It says American wines and spirits have benefited from fair and reciprocal trade with Canada and Mexico and the duties will cause great harm to U.S. companies and employees.
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11:10 a.m.
Bloc Québécois Leader Yves-François Blanchet says he does not believe U.S. President Donald Trump is trying to annex Canada by imposing tariffs.
"That's one of his fantasies and he might sometimes believe himself, I'm not his psychiatrist, but it's just not even possible. It cannot happen," he said at a press conference on Parliament Hill.
Blanchet says that while repeating something that will not happen just spreads fear, there are real threats "from this weird man" that Canada and Quebec must face.
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11:00 a.m.
Peter Navarro, a senior trade adviser to U.S. President Donald Trump, said he watched Prime Minister Justin Trudeau's Tuesday press conference about tariffs.
Navarro told CNN Wednesday it would be really useful if Trudeau "toned stuff down."
Navarro would not speak about any compromise that could be made to lift the tariffs or the likelihood of a phone call between Trudeau and Trump today.
Navarro argued that Trump's tariffs are about stopping the flow of fentanyl. Canadian officials have said repeatedly that it's clear to them the tariffs were not imposed in response to drug trafficking.
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10:30 a.m.
In a press conference on Parliament Hill, NDP MP Charlie Angus praised Canadians who have been boycotting U.S. products and travel and buying Canadian instead.
“Now that might not seem like a big deal, but these are the decisions being made at kitchen tables across our nation to stand with Canada or to give in."
He said Trump can do his worst and Canadians will do their best.
“We are true north, strong, free, and it's elbows up time,” he said. “Canada will never bend. We will never kiss the gangster's ring.”
Angus also took aim at Trump’s attacks on Ukrainian president Volodymyr Zelenskyy and Trump’s friendliness with Russia.
“This is how the great American century ends. It's not with a bang or with a whimper. It's like some kind of tacky roadshow from the World Wrestling Federation,” Angus said.
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9:10 a.m.
Canada's industry minister says he is looking to block what he calls "predatory investment behaviour" during the trade war with the United States.
François-Philippe Champagne says Canadian businesses made vulnerable by tariffs could be under threat from foreign investors looking to take advantage.
Champagne is updating the Investment Canada Act to include a new factor the federal government must consider when weighing whether a deal can go ahead: the prospective investment's effects on Canada's economic security.
This will allow Canada to reject foreign investments that could harm the Canadian economy or workers, he says.
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8:20 a.m.
U.S. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that he expects U.S. President Donald Trump will make an announcement on the tariffs this afternoon.
Lutnick insisted repeatedly that the tariffs on Canada and Mexico were about fentanyl coming into the U.S. from its neighbours.
He suggested the tariffs will remain at 25 per cent but some categories of goods could be exempted.
Lutnick said some sectors could be left out of tariffs — including the auto sector — if they comply with the rules under the United States-Mexico-Canada Agreement that was negotiated in Trump's first term.
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6:30 a.m.
Stock markets in the U.S. were set to bounce back after U.S. Commerce Secretary Howard Lutnick seemed to suggest some sort of compromise is in the works on tariffs.
The futures market pointed to a positive open for U.S. stock markets, a day after they posted broad losses.
Lutnick told Fox Business after the close of trading Tuesday that Trump may amend the tariffs, though it's not clear what he's considering.
"None of that pause stuff — but I think he's going to figure out, 'You do more and I'll meet you in the middle some way,'" Lutnick said.
This report by The Canadian Press was first published March 5, 2025.
The Canadian Press
