Prime Minister Justin Trudeau wrapped up a call with his U.S. counterpart midday Wednesday, a senior government official told CBC News.
It’s the first time the two have spoken since U.S. President Donald Trump launched a trade war yesterday with devastating tariffs on all Canadian goods.
The details of what the two leaders discussed are not yet known.
Vice-President JD Vance and Commerce Secretary Howard Lutnick were also on the call, the government official said.
The official said discussions between the two sides will continue throughout the afternoon.
U.S. President Donald Trump justified imposing 25 per cent tariffs on Canada in a lengthy speech to Congress, a move Prime Minister Justin Trudeau had earlier described as ‘very dumb.’
Canada is trying to get Trump to back down from his plan to effectively torpedo free trade between the two countries. Trump is supposedly looking to make some changes to the trade action he took just 24 hours ago.
Trump’s steep 25 per cent levy on virtually all Canadian goods has rattled markets and consumer confidence on both sides of the border.
The call comes as the federal government grapples with the usual chaotic situation out of Trump’s Washington. The president’s advisers suggested at different points over the last 12 hours that there could be a compromise on tariffs, only to say later that tariffs will still apply but maybe at a lower rate.
After U.S. stock market plummeted once Trump slapped tariffs on Canada and Mexico. Lutnick appeared on Fox News Business Tuesday saying he’s working on a plan to “meet in the middle” on tariffs, without offering any clarity on what exactly that means.
Speaking to Bloomberg Television on Wednesday morning, Lutnick said “there will be tariffs, let’s be clear.”
“But what we’re talking about is what sections of the market he’ll maybe consider giving them relief until we get to April 2,” he said, referring to Trump’s plan to impose even more tariffs next month on countries he thinks are ripping off the U.S.
Lutnick says Canada, Mexico ‘trying their best’
Lutnick said the president may land “somewhere in the middle” because Mexico and Canada are “trying their best,” suggesting the U.S. tariff rate may be lower than the current 25 per cent.
Canada doesn’t want any tariffs at all and will push for a full removal to restore free trade, Finance Minister Dominic LeBlanc said.
In an interview with CBC’s The National late Tuesday night, LeBlanc said Canada is “not interested in some sort of reduction of the tariffs. We want the free trade agreement with the United States and Mexico respected.”
He said Canadians are rightfully angry, frustrated and insulted by Trump’s abusive trade actions, and that means the government won’t settle for half measures.
“We’re not interested in meeting in the middle,” LeBlanc said in an interview with CBC Radio’s The Current Wednesday morning.
LeBlanc said Canada’s retaliatory tariffs could be lifted if the U.S. shows some goodwill.
“If the Americans want to talk to us in a constructive way about how we could lift the tariffs, remove them and get back to building an economy that works for both countries, we can,” he said.
In his address to Congress last night, Trump doubled down on the value of tariffs, including on allies like Canada.
“Tariffs are about making America rich again and making America great again, and it is happening and it will happen rather quickly. There will be a little disturbance, but we are OK with that,” he said.
