Toronto
By Kelly Geraldine Malone and Sarah Ritchie, The Canadian Press
Posted March 5, 2025 9:15 am.
Last Updated March 6, 2025 12:10 am.
The Big Three automakers were able to secure a month-long tariff exemption on Wednesday after a conversation with U.S. President Donald Trump — but Prime Minister Justin Trudeau wrapped a call to the Oval Office with no such guarantees for Canada.
Trump has granted a one-month exemption for any vehicles coming through the Canada-U.S.-Mexico Agreement on trade, also known as CUSMA.
White House Press Secretary Karoline Leavitt said during a briefing Wednesday afternoon that the move comes after the automakers — Stellantis, Ford and General Motors — asked for help.
“Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with (CUSMA), the president is giving them an exemption for one month so they are not at an economic disadvantage,” Leavitt said, reading from a statement by Trump.
Leavitt said the purpose of the reprieve is to give automakers time to “shift production here to the United States of America where they will pay no tariff. That’s the ultimate goal.”
She later added that Trump is open to other carve-outs.
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Trump followed through Tuesday on his threat to impose sweeping tariffs on Canada and Mexico — something Trudeau described as “a very dumb thing to do” when he announced retaliatory tariffs on $30 billion in American goods the same day. Another $125 billion in Canadian tariffs are set to come into effect 21 days later.
Canadian goods imported into the U.S. are now subject to 25 per cent tariffs, except for energy, which is taxed at 10 per cent.
Foreign Affairs Minister Mélanie Joly told the Toronto Region Board of Trade on Wednesday that Canada could still exert pressure through products the U.S. relies on, such as uranium, potash and energy.
“We haven’t put that on the table yet,” she said, adding they are “cards that we could potentially play if this would escalate — and the U.S. knows that.”
“But in order for us to be using any other new cards, we need to make sure that Canadians are on board and that premiers are on board, and I think that we’ve seen, bit by bit, even more unity,” she added.
Alberta Premier Danielle Smith said her province’s oil and gas exports are a “trump card” in the trade war with the United States.
“Whether the U.S. president wishes to admit it or not, the United States not only needs our oil and gas today, they are also going to need it more and more with each passing year,” she told reporters in Medicine Hat, Alta., where she announced the province’s plan to retaliate and enhance security at the border.
But Smith also said there’s “no circumstance” that would see her support an export tax on energy.
Saskatchewan Premier Scott Moe said 85 to 90 per cent of U.S. imports of potash — a critical fertilizer used in agriculture — come from his province.
“If you were to shut down production going to the U.S., and let’s use potash as an example, that would result in immediate job loss in Saskatchewan,” he told a press conference in Regina. “That’s not our goal.”
Joly talked with Secretary of State Marco Rubio on Wednesday and said Finance Minister Dominic LeBlanc called Commerce Secretary Howard Lutnick as well. She said Trump is the ultimate decision-maker in Washington.
The president was on the phone with Trudeau in the early afternoon, along with Lutnick and U.S. Vice-President JD Vance.
Trudeau’s office provided no details about what was discussed during the phone call.
In a statement Wednesday, Canada’s first ministers said they had agreed to reduce barriers to internal trade and labour mobility across the country.
“We must increase our economic resilience, reduce dependence on one market, and strengthen our domestic economy for the benefit of Canadian workers and businesses now and in the future,” the statement read.
The statement said the group agreed that certified professionals should be able to work anywhere in Canada. Due to its “linguistic specificity among other things,” it said Quebec plans to implement measures for credential recognition “when it deems it in line with its own objectives.”
The prime minister and premiers have tasked the Committee on Internal Trade and the Forum of Labour Market Ministers with developing a service standard of 30 days or better and a plan for Canada-wide credential recognition by June 1.
The statement said most first ministers have committed to allowing “direct-to-consumer” alcohol sales for Canadian products. It also said the group “applauded” internal trade ministers for undertaking a review of exceptions under the Canadian Free Trade Agreement.
Speaking to reporters Wednesday, Joly said Trudeau has also been meeting with premiers and that no sector will be “pitted against another” as part of a response to Trump’s tariffs. She added that the goal is to protect jobs, including in the auto, steel and aluminum and other sectors.
Joly said the tariffs are “completely unjustified” and she described the link to fentanyl as a “bogus argument.” Joly added that Canadians won’t go through this “psychodrama” every 30 days and that “we need to stand strong.”
“There’s too much unpredictability and chaos coming out of the White House right now,” Joly said.
Joly urged Canadians to “do their part” by buying Canadian products and vacationing in Canada or elsewhere in the world.
In a post on Truth Social, Trump said Trudeau called him to “ask what could be done about tariffs” and he insisted the actions Canada has taken to curb the flow of fentanyl into the U.S. are not good enough.
Trump’s executive order imposing the tariffs cites a national security risk from illegal migrants and fentanyl coming into the U.S. from Canada and Mexico. On Tuesday, Trudeau called that a “legal pretext” with no basis in fact.
Trump ended his Truth Social post by falsely claiming Trudeau was trying to use the tariff issue to stay in power as prime minister.
“(Trudeau) was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here?” Trump asked in his post.
“I then realized he is trying to use this issue to stay in power. Good luck Justin!”
Trudeau is set to step down as prime minister after the Liberals choose a new leader on Sunday. The next federal election will be held sometime between April and October.
In Washington, Canadian frustration boiled over during a panel discussion of the Canada-U. S. Interparliamentary Group at the Wilson Centre.
Ontario MP Irek Kusmierczyk, whose Windsor—Tecumseh riding is deeply integrated into the U.S. economy, said his constituents feel betrayed. They worked as nurses in U.S. hospitals during the COVID-19 pandemic, vacation at American beaches and support U.S. businesses.
“I don’t understand the steps the U.S. administration is taking,” Kusmierczyk said.
Windsor West MP Brian Masse, whose riding would be hit hard by auto tariffs, said a billion-dollar auto plant can’t move to the U.S. in 30 days.
Bill Huizenga, a Republican congressman for Michigan, told the panel that not even Republicans know exactly what Trump will do.
“We have been expressing some of our issues and concerns about where is this going and how is this playing out,” Huizenga said.
Canadian officials believe the tariffs are meant to rattle Canada and Mexico ahead of the continental free trade pact’s mandatory review next year.
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