Canada, US in trade war 'for foreseeable future' despite potential sector breaks: Trudeau

Prime Minister Justin Trudeau on Thursday said Canada will continue to be in a trade war with the US for “the foreseeable future” even if there are “breaks for certain sectors.”

“Our goal remains to get these tariffs, all tariffs removed,” AFP quoted Trudeau as saying, a day after an urgent call with US President Donald Trump to try to avoid plunging the two neighbours into what he called a “dumb” and “unjustified” trade war.

Trudeau said Canada would continue to engage with senior Trump administration officials about tariffs Washington says it will impose on Canadian imports.

“I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future,” Reuters quoted Trudeau as saying in Ottawa.

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Canada immediately implemented 25% tariffs on C$30 billion worth of US imports, with Prime Minister Trudeau saying that these measures would remain in effect until the Trump administration ceased its trade actions.

Trudeau and Trump, who has accused Canada of not doing enough to curb the flow of fentanyl and illegal migrants across the border, engaged in a 50-minute phone call on Wednesday.

“It was a colorful call. It was also a very substantive call,” Reuters quoted Trudeau as saying, adding that the two sides were in talks but had nothing to announce yet.

“We are … trying to make sure that these tariffs don’t overly harm, certainly in the short term, certain sectors,” added Trudeau.

One topic of conversation is Canada possibly delaying a second round of 25% tariffs on a further C$125 billion of US imports, due to come into effect in less than three weeks.

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“Any carve outs that support any workers in Canada, even if it’s just one industry or another, are going to be a good thing,” said Trudeau.

The Canadian prime minister will step down once the ruling Liberal Party chooses a new leader this Sunday. He has generally had poor relations with Trump and took a swipe at the president, who first made a name for himself as a real estate mogul.

“A win-lose between us would actually be worse for them than a win-win. That’s true in international trade, in relations between nation states,” he said.

“It perhaps is not true in real estate deals, (where) a win-lose is probably better for someone who is experienced in business deals than a win-win,” he said.

Meanwhile, President Trump announced that after speaking with Mexican President Claudia Sheinbaum he has agreed that Mexico will not be required to pay tariffs on anything that falls under the US-Mexico-Canada-Agreement until 2 April.

“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!” said Trump.

With inputs from agencies