Trudeau expects a trade war between Canada and the US for the 'foreseeable future'

TORONTO (AP) — Canadian Prime Minister Justin Trudeau said Thursday he expects Canada and the U.S. to be in a trade war for the foreseeable future after having what he called a colorful but constructive call with U.S. President Donald Trump this week.

Trudeau said the two sides discussed tariffs, and that they are “actively engaged in ongoing conversations in trying to make sure these tariffs don’t overly harm” certain sectors and workers. He also reiterated that “we will not be backing down from our response tariffs until such a time as the unjustified American tariffs are Canadian goods are lifted.”

Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.

A day after the new tariffs took effect, Trump said he would grant a one-month exemption for U.S. automakers. The announcement came after Trump spoke Wednesday with leaders of Ford, General Motors and Stellantis, the parent company of Chrysler and Jeep. His press secretary said Trump told the chief executives to move auto production to the U.S. to avoid tariffs.