Canada-U.S. Trade War Continues Despite Auto Tariff Reprieve
OTTAWA — The trade war between Canada and the United States continues to escalate, despite a reprieve on auto tariffs.
U.S. President Donald Trump has granted a one-month exemption to Stellantis, Ford, and General Motors from his sweeping 25 per cent tariffs after discussions with Prime Minister Justin Trudeau. White House Press Secretary Karoline Leavitt said the decision follows requests from automakers, citing the deep integration of the Canada-U.S. supply chain dating back to the 1950s.
While the move offers temporary relief to Ontario’s auto sector, concerns remain that Trump’s ultimate goal is to shift Canadian manufacturing jobs to the U.S. Meanwhile, reciprocal tariffs will take effect on April 2, with little sign of a broader resolution.
In retaliation for U.S. trade measures, Ontario has placed a moratorium on purchasing American alcohol, including Kentucky bourbon. Kentucky Governor Andy Beshear criticized the tariffs, saying they are not what Americans voted for. Kentucky Congressman Morgan McGarvey echoed his concerns, blaming Trump and warning that his state’s economy will suffer, as Canada accounts for nearly $10 billion of its bourbon exports.
Following his conversation with Trudeau, Trump took to Truth Social, accusing the prime minister of using the tariffs to cling to power. As tensions rise, Liberal Party members are already casting ballots to decide Trudeau’s potential successor, with voting set to close on March 9.