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WASHINGTON, March 6 (Reuters) – President Donald Trump on Thursday exempted goods from both Canada and Mexico under a North American trade pact for a month from the 25% tariffs that he had imposed earlier this week, the latest twist in fast-shifting trade policy that has whipsawed financial markets and business leaders.
The exemption, which will expire on April 2, covers both of the two largest U.S. trading partners. Trump had earlier only mentioned an extension for Mexico, but the amended tariffs order – initially issued on Tuesday – covers Canada as well.
Just before being referred to as “a numbskull” by U.S. Treasury Secretary Scott Bessent, Prime Minister Justin Trudeau declared on Thursday that Canada would be engaged in a trade war with the United States for the foreseeable future.
Trudeau said Canada would continue to engage with senior Trump administration officials about tariffs Washington says it will impose on Canadian imports, reiterating that his goal was to get the measures removed.
“I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future,” he told reporters in Ottawa. Canada immediately imposed 25% tariffs on C$30 billion of U.S. imports and Trudeau said those measures would remain in place until the Trump administration ended its trade action.
Bessent made clear the administration’s unhappiness, telling an event in New York that “If you want to be a numbskull like Justin Trudeau and say ‘Oh we’re going to do this’, then tariffs are going to go up”.
In response, a Canadian government source said Washington was upset because Ottawa had retaliated. Trudeau and Trump, who accuses Canada of not doing enough to stop the flow of fentanyl and illegal migrants across the border, held a 50-minute phone conversation on Wednesday.
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