Trudeau Rejects US Trade Settlement Proposal Amid Ongoing Tariff Dispute

Prime Minister Justin Trudeau has firmly rejected any compromise on Canada’s retaliatory tariffs, saying his government will not lift them unless the US removes all tariffs on Canadian goods. According to a senior Canadian official, Trudeau’s administration is unwilling to entertain a “middle ground” solution, even as US Secretary of Commerce Howard Lutnick proposed a potential settlement.

No Compromise on Partial Tariff Rollbacks

A Canadian official, speaking anonymously, clarified that Trudeau won’t accept a scenario requiring full tariff revocation. The issue involves US tariffs. These include a 25% tariff on most Canadian goods, excluding oil and natural gas. Energy products are subject to a 10% tariff. The dispute remains unresolved, with both sides negotiating the terms of rollback.

Canada’s Retaliatory Tariffs Target US Goods

In response, Canada imposed tariffs on C$30 billion ($20.8 billion) worth of US goods, including cosmetics and tires. These tariffs also target fruit and wine, aiming to retaliate against the US measures. Trudeau’s government plans to expand counter-tariffs by March, adding C$125 billion in US exports. The expanded list includes vehicles, aluminum, and agricultural products. These measures demonstrate Canada’s commitment to protecting its economy and responding to trade challenges.

Trump’s Proposal for Targeted Tariff Relief

US officials, including Lutnick, suggested President Trump might offer tariff relief for sectors like the automotive industry. Lutnick emphasized that the US strategy was not a trade war but a “drug war” aimed at addressing fentanyl trafficking. However, Trudeau quickly dismissed this justification, pointing out minimal fentanyl seizures at the border. The ongoing dispute highlights the tensions surrounding trade and drug enforcement policies. Both sides remain entrenched in their positions, with no resolution in sight.

---

---

Trudeau Doubts US Fentanyl Tariff Justification

Trudeau rejected Trump’s argument, calling it baseless and falsely constructed. Canadian authorities have already spent C$1.3 billion on new border security measures. These efforts aim to combat organized crime, including fentanyl trafficking. Additionally, further funding has been allocated to address the growing fentanyl crisis. Trudeau’s response underscores Canada’s commitment to tackling both trade and security challenges effectively.

Trump’s Criticism of Trudeau’s Leadership

During a phone call, Trump referred to Trudeau as “governor” and blamed him for the trade dispute. He accused Trudeau of weak border policies, which he claimed contributed to the issue. Trump also questioned Trudeau’s political stability, highlighting his inability to specify the Canadian election date. This exchange reflects the escalating tensions between the two leaders. The focus on personal attacks further complicates diplomatic relations.

Potential Impact on American Families

Trudeau warned that the tariffs would ultimately harm American families, resulting in job losses and higher prices for goods. He highlighted that essential items like groceries, gas, cars, and homes would become more expensive. Trudeau suggested that Trump’s policies would inflict economic damage on both the US and Canada. This warning underscores the broader consequences of the trade conflict. The dispute could have far-reaching effects on consumers and industries across North America.

Irreparable Damage to US-Canada Relations

Canadian Energy Minister Jonathan Wilkinson stated that the tariff dispute has irreparably damaged the relationship between Canada and the US. He emphasized that, even if the tariffs were lifted, trust between the two nations would never fully return. This marks a significant shift in diplomatic relations. Wilkinson’s remarks reflect the long-term impact of the ongoing trade tensions. The loss of trust could hinder future collaboration between the two countries.

---