Canadian Prime Minister Justin Trudeau and U.S. President Donald Trump had a 50-minute phone conversation on Wednesday, March 5. During the call, they addressed the trade war triggered by tariffs imposed by the United States and Canada's efforts to restrict the flow of fentanyl into the U.S.
The conversation also included U.S. Vice President JD Vance and U.S. Secretary of Commerce Howard Lutnick. Trump revealed on his social media platform Truth Social that he expressed his dissatisfaction to Trudeau regarding the neighbor country's efforts to stop the flow of fentanyl: "He said the situation has improved, but I told him: That's not enough."
Trudeau is scheduled to speak with Mexican President Claudia Sheinbaum in the coming hours. These discussions between the leaders of the U.S., Canada, and Mexico come after Trump imposed a 25% tariff on products from both countries, despite the existence of the USMCA free trade agreement.
Trudeau has made it clear that Canada will not completely lift its retaliatory tariffs if Trump does not remove the tariffs on his country. The Canadian government rejects the idea of a "middle-ground" deal proposed by the U.S. Secretary of Commerce and opposes any scenario where Canada must completely eliminate its tariffs in exchange for a partial reduction of U.S. tariffs.
In response, the Trump administration will exempt automobile manufacturers from the tariffs for one month, as announced by the White House as a temporary measure following requests from the automotive industry. White House Press Secretary Karoline Leavitt mentioned that there will be a one-month exemption for any automobile entering under the USMCA, the trade agreement negotiated by Trump with Canada and Mexico during his first term.
