Canada Won’t Lift Tariffs Until Trump Does the Same

Canada reportedly won’t lift its retaliatory tariffs on the U.S. if the U.S. leaves its levies in place.

That’s according to a senior government official, who told Bloomberg News on Wednesday (March 5) that Prime Minister Justin Trudeau is opposed to the “middle ground” settlement proposed by U.S. Commerce Secretary Howard Lutnick.

This official, who asked not to be identified, said Canada is especially cool to the idea of fully pulling its retaliatory tariffs in return for a partial rollback of American tariffs.

The White House on Tuesday (March 4) imposed 25% tariffs on all Canadian imports to the U.S. on Tuesday, aside from energy products such as oil and natural gas, which have a 10% rate. Trump later agreed to exempt auto imports from Canada and Mexico for one month, after speaking Wednesday with the heads of the three biggest U.S. car companies.

In response to the U.S. tariffs, Canada has placed levies on $20.8 billion in American products, such as cosmetics, tires, fruit and wine, the Bloomberg report noted. Future tariffs on American goods could come later this month, covering an array of food and agricultural products.

“He is rapidly going to find out, as American families are going to find out, that that’s going to hurt people on both sides of the border,” Trudeau said of Trump on Tuesday. “Americans will lose jobs, Americans will be paying more for groceries, for gas, for cars, for homes.”

The U.S. has also imposed tariffs on Mexico, though that country’s president has said wants to delay imposing counter tariffs until after talking with Trump, a move said to be aimed at deescalating a trade war between the countries.

“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Mexican President Claudia Sheinbaum said of the American tariffs.

Meanwhile, chief financial officers (CFOs) surveyed by PYMNTS say they’re bracing to pay more for raw materials because of the tariffs. Among CFOs in the retail and goods segments 80% said that higher costs for supplies and potential shortages of essentials would have an effect on their bottom line.

“Moreover, the ripple effect could be significant: Short supply means that prices would rise even more sharply for end consumers under the simple laws of supply and demand,” PYMNTS wrote. “In general, the majority of CFOs surveyed — at least 60% — see greater economic uncertainty and planning challenges.”