Canada and the U.S. are now in a trade war. Yesterday, one minute after midnight, U.S. President Donald Trump’s sweeping 25 per cent tariffs against Canada went into force. Energy products are tariffed at 10 per cent. Canada, in response, announced retaliation, which Trump then promised to match.
Here are the latest developments:
- Trudeau and Trump spoke on the phone today
- The Trump administration will allow a one-month delay for tariffs against automakers
2:12 p.m. EST: Trump open to other tariff exemptions
After confirming Trump will allow for a one-month tariff delay on auto manufacturers, U.S. Press Secretary Karoline Leavitt said the president might consider exceptions on other goods.
Asked about the rising price of eggs in the U.S., Leavitt said “the president is open to hearing about additional exemptions.”
However, later in the briefing, Leavitt insisted: “The reciprocal tariffs will go into effect on April 2. And he feels strongly about that, no matter what, no exemptions.”
“The President does love tariffs. He said it’s one of his favourite words of the English dictionary, and he believes in tariffs, because they’ll ultimately make America rich again,” she said. “They’re going to raise revenue. They’re going to help us pay down our debt. Most importantly, they’re going to bring American jobs here back home.”
Rachel Aiello, CTV News national correspondent and Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
1:54 p.m. EST: White House press secretary on Trump-Trudeau call
White House Press Secretary Karoline Leavitt continues to insist that Canada is allowing fentanyl to enter the United States, in stating this is the rationale for Trump’s tariff imposition.
In a briefing, Leavitt cited Trump’s social media post, relaying that the president feels Trudeau’s efforts to address fentanyl smuggling is “not good enough,” and “there needs to be repercussions.”
“He told Prime Minister Justin Trudeau that directly,” she said. “The call ended in a somewhat friendly manner, as the president said, but he’s not going to stop standing up for the American people.”
Leavitt’s comments came in response to a reporter that asked specifically what more Canada needs to do.
Canadian officials have repeatedly emphasized that less than one per cent of the seized fentanyl imports in the U.S. comes from Canada.
Further, data from U.S. Customs and Border Protection (CBP) shows fentanyl-related interceptions have decreased.
Rachel Aiello, CTV News national correspondent
1:42 p.m. EST: White House confirms auto tariff delay
When asked in a White House press briefing whether Trump spoke to the “big three auto dealers” about a tariff exemption, U.S. Press Secretary Karoline Leavitt confirmed what was previously reported.
“We are going to give a one-month exemption on any autos coming through USMCA,” Leavitt said, adding that reciprocal tariffs are still in place for April 2.
“But at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”
The car dealers involved include Stellantis, Ford and General Motors.
Lynn Chaya, CTVNews.ca digital breaking news assignment editor
1:35 p.m. EST: Tariff delay was a ‘foot on the chest’
U.S. Commerce Secretary Howard Lutnick appeared on Fox News early this afternoon to talk tariffs.
He was asked why Trump decided to delay the tariffs, initially slated to start at the beginning of February, only to reimpose them a month later.
Asked if the administration was taking a two steps forward, one step back approach, Lutnick said “there has never been a step back.” Instead, Trump’s efforts on tariffs have been “a pounding forward move,” calling the delay a “foot on the chest.”
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
1:14 p.m. EST: Trump to Trudeau: ‘Good luck Justin!’
Trump is now commenting on the call on his Truth Social platform.“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped. He said that it’s gotten better, but I said, ‘That’s not good enough,’” he wrote.
“The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!”
In another post three minutes later, he accused “Governor Justin Trudeau of Canada” of maintaining “Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States.”
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
1:09 p.m. EST: PMO confirms call
The Prime Minister’s Office has released a short statement confirming the call between Trudeau and Trump.
“The Prime Minister and President spoke today about trade and fentanyl. Both countries will continue to be in contact today,” reads the statement.
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
1:00 p.m. EST: PM the only one to speak on Canadian side of call
Prime Minister Justin Trudeau was the only official from the Canadian side to speak on the call with Trump, according to a senior government source.
The morning call, the source said, lasted around 50 minutes.
Mike Le Couteur, CTV News senior political correspondent
12:50 p.m. EST: Trudeau, Trump speak amid trade war
Prime Minister Justin Trudeau spoke with U.S. President Donald Trump on Wednesday, CTV News has confirmed.
The phone call happened not long ago, according to a source.
It comes a day after Trump levied massive tariffs on Canada and Trudeau responded with a first phase of retaliatory countermeasures.
According to a senior government source, discussions continue with Americans.
The official said that U.S. Vice President JD Vance and U.S. Commerce Secretary Howard Lutnick joined the call.
A “very short” readout is expected to be issued shortly.
Rachel Aiello, CTV News national correspondent
12:46 p.m. EST: ‘Tailwinds’ for stock market despite tariffs
Ross Mayfield, an investment strategy analyst at Baird, said in an interview with BNN Bloomberg Wednesday he is bullish on equity markets, despite uncertainty and tariffs becoming the “dominant narrative."
“I think we’re in a tricky spot right now because there’s as much of an underlying scare about economic growth… as there is about the potential for tariffs to weigh on profits and potentially spark a second wave of inflation,” he said, highlighting U.S. employment figures released Wednesday that came in softer than expected.
“Ultimately we remain bullish but think that there could be some more downside weakness here given the kind of cacophony of headwinds.”
12:32 p.m. EST Navarro lobs accusations at Trudeau
Peter Navarro, a White House senior trade and manufacturing advisor, accused Prime Minister Justin Trudeau of allowing “Mexican drug cartels to embed themselves” across the country on CNN this morning.
CTV News has asked the Prime Minister’s Office to respond. He also echoed U.S. Commerce Secretary Howard Lutnick, classifying the trade war as a “drug war” against fentanyl.
“Fentanyl. It’s been called a slow-moving weapon of mass destruction,” he said. Trump has repeatedly named the deadly drug as the impetus for his tariffs, though he has also said he wants change on trade dynamics, and for Canada to become a state.
Canadian leaders have responded with various border measures and highlighted that most of the fentanyl seized in the U.S. comes from Mexico.
Far less than one per cent of fentanyl flows and less than one per cent of illegal crossings into the United States comes from Canada. But we acted because we know we can always do better,” said Trudeau during a speech yesterday.
“We responded to concerns, including from the president, by implementing an ambitious $1.3 billion border plan, a border plan that includes generational investments in new AI and imaging tools to stop the flow of fentanyl in its tracks.”
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
12:20 p.m. EST: Canada’s UN ambassador on Trump
Bob Rae, Canada’s ambassador to the United Nations, says U.S. President Donald Trump sees the world in a “totally binary way.”Rae says Trump believes that “what’s good for me is bad for you, what’s good for you is bad for me.”Rae says it’s a win-lose proposition and a terrible mistake, adding protectionist policies hurt global trade.
The Canadian Press
12:17 p.m. EST: U.S. officials weighing 1-month delay for tariffs on automakers: Bloomberg
The Trump administration is weighing a one-month delay for tariffs against automakers, Bloomberg is reporting, citing “people familiar with the matter.”
Administration officials met with the heads of Ford Motor Co., General Motors Co. and Stellantis NV to discuss the matter on Tuesday, according to the outlet, again citing sources who were not authorized to discuss the details.
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
11:47 a.m. EST: Ford had ‘good conversation’ with Lutnick
Ontario Premier Doug Ford tells reporters at Queen’s Park that he had a “good conversation” with U.S. Commerce Secretary Howard Lutnick on Tuesday night.
Ford did not address comments that Lutnik made to Bloomberg suggesting that Trump could make a further announcement on tariffs later today, though he appeared to hint at it.
“We had a good conversation. We had a good conversation. Let’s stay tuned until after the prime minister meets with Trump on the phone,” Ford said on the way to a cabinet meeting.
Chris Fox, CP24 managing digital producer
11:35 a.m. EST: Border mayor on relationship impacts
The impact of the new tariffs is seeping into both business and personal relationships, according to the mayor of one of Canada’s border towns.
Fort Erie, Ont., Mayor Wayne Redekop said there’s an element of tension in friendships and family relationships between Canadians and Americans right now that may get worse before it improves. If the tariffs result in layoffs, “that’s going to make feelings harsher towards our American neighbours,” he said in an interview on CTV News Channel Wednesday.
Redekop said some businesses in border communities like his export as much as 90 per cent of their products to the U.S., and as they try to navigate the changes, they’re not sure whether they’ll be able to stay open.
Some are exploring opening a shop south of the border so they don’t need to close, he said. While businesses are interested in maintaining operations in Canada, they’re also worried about keeping their staff employed as long as possible, he added.
Redekop said the damage to business relationships in his area may be long-lasting.“From a business perspective, how do you put all of your eggs in a basket, when you don’t know whether the basket is going to be tipped over tomorrow or the next day or whenever? So that is going to create long-term strain,” he said.
“That’s unfortunate, because it’s been a two-plus century relationship that has developed marvellously over the years. It’s just hard to fathom why someone would essentially go next door, punch their neighbour in the head and say, ‘I don’t like your fence, I’m going to take it down and I’m going to take over your backyard.’”
Kendra Mangione, CTVNews.ca journalist
11:30 a.m. EST: Tariffs could raise new, used vehicle prices
The CEO of the Ontario Motor Vehicle Industry Council tells CP24 that she believes tariffs will shift some buyer behaviour, with more consumers turning to the used vehicle market amid an expected rise in new vehicle prices.
Maureen Harquail, however, says that if the tariffs remain in place for any period of time it could “fuel used car prices as well.”
“This is not good for business and ultimately this will not be good for consumers,” she says. “We are very concerned about the impact these tariffs will have on all of the dealers we register but, of course, also on consumers who are going to end up paying the price.”
Harquail added that the tariffs have already had some impact on the industry in Ontario, with reports of “some manufacturers pausing or at least slowing down making any significant decisions” around retooling production lines and other investments.
“If these last for a long time it will have a significant impact on the manufacturing industry here in Ontario and in Canada broadly,” she said.
Chris Fox, CP24 managing digital producer
11:07 a.m. EST: Unifor president on auto industry impact
The leader of Canada’s primary union for auto workers is warning of a sweeping and almost immediate impact of Trump’s tariffs on “the biggest industry in North America.”
Lana Payne, national president of Unifor, said in an interview on CTV’s Your Morning the tariffs will impact the auto industry on both sides of the border, given how “interconnected the auto industry is across North America.”
Speaking about an estimate from Ontario Premier Doug Ford about auto plant closures within 10 days of the imposition of tariffs, Payne said past supply chain impacts have put the industry “in a lot of trouble in a very quick period of time.” And if plants can’t get parts, layoffs are likely, she said.
It’s possible the impact on the auto industry may “bring this whole tariff discussion to a head,” she said Wednesday.
“If you have the auto industry … not being able to operate, not being able to function, pretty quickly the president of the United States is going to have to make some serious decisions here about what he’s done and the impact of these tariffs on workers on both sides of the border.”
Kendra Mangione, CTVNews.ca journalist
10:55 a.m. EST: Loonie traders guessing
The Canadian dollar is rallying Wednesday morning after U.S. Commerce Secretary Howard Lutnick hinted that tariff relief could be coming for Canada.
But Lutnick was short on details, so uncertainty remains for loonie watchers like Shaun Osborne, managing director and chief FX strategist at Scotiabank.
“It’s quite confusing,” Osborne told BNN Bloomberg in a Wednesday interview, about an hour after Lutnick told Bloomberg television that some sectors could see an exemption from tariffs, and that Trump is expected to make a tariff announcement later today.
“The messaging late yesterday was that there might be some sort of concession from Trump today, so we got a little bit of a pop in the Canadian dollar late yesterday afternoon. We’ve held those ranges overnight and this morning.”
Osborne said that Lutnick’s comments, though they’ve been supportive for the loonie since they were made, have added to the confusion. “It’s not really clear what kind of concessions he’s talking about or if we’re going to get any concessions at all,” he said.
The loonie was trading for 69.61 cents US in early trading Wednesday, compared to 69.02 cents US on Tuesday.
Jordan Fleguel, BNN Bloomberg journalist
10:40 a.m. EST: ‘Too early to know’ lobster industry impacts
Geoff Irvine, executive director of the Lobster Council of Canada, says it’s “too early to know” of the impacts tariffs will have on his industry, which accounted for nearly $2 billion in Canadian exports last year, supporting hundreds of communities along the East Coast.
“We don’t really know until we start to ship product into the market,” he said in an interview with CTV News Channel Wednesday morning. “As of yesterday, the tariffs are on, so anybody shipping frozen or live lobster in has to pay the tariff.”
Irvine notes that typically, the importer of record in these kinds of deals, who is responsible for paying the 25 per cent tariff, is a Canadian company.
“Automatically, that means they have to raise their prices by 25 per cent to achieve the same return,” he said. “The question is: ‘Will the market accept it?’ And it’s too soon to know, since it just started yesterday.”
Charlie Buckley, CTVNews.ca national digital producer
10:28 a.m. EST: Lutnick understands ‘chaos’: Ford
Ontario Premier Doug Ford says he feels U.S. Commerce Secretary Howard Lutnick understands Canada’s position on the unfolding trade war between the two countries and the “chaos” it could bring after the two had a phone conversation last night.
Ford made the comment in an interview with ABC News on Wednesday morning.
“First of all, Secretary Lutnick is a super bright individual. He understands markets, he understands business,” Ford told ABC News. “And it (the tariffs) turned the U.S. and Canada into mass chaos over the last couple days. You know, the market tanked $3 trillion I know it’s coming back up a little bit, but they want certainty, and that’s all I was telling to the secretary. You know, don’t attack your closest friend and ally.”
Ford said that all Canada wants is a fair trade agreement and added that Lutnick understands. “That’s what my message to him was, and he understands. He’s actually, he’s a good man,” he said.
Ford also said that behind closed doors, Republican politicians agree that the trade war makes no sense for the economy in either country.
Joshua Freeman, journalist, CP24.com
9:44 a.m. EST: Trudeau, Trump expected to speak today: source
A government source told CTV News Canadian Prime Minister Justin Trudeau is expected to speak with the president today.
CNN and Reuters are reporting a call between the two world leaders is scheduled. Trump, for his part, is expected to make a public address later today, according to his commerce secretary, Howard Lutnick.
Neither leader’s public schedule mentions a call.
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
9:40 a.m. EST: Markets tick higher after Lutnick hints at tariff relief
North American equity markets opened higher on Wednesday following a tumultuous day of trading on Tuesday after U.S. President Donald Trump’s administration imposed 25 per cent tariffs on most goods from Canada and Mexico.
The S&P 500 Index in New York and S&P/TSX Composite Index in Toronto each rose less than one per cent at the open, following remarks from U.S. Commerce Secretary Howard Lutnick earlier Wednesday hinting that further announcements on tariffs are expected this afternoon.
Jordan Fleguel, BNN Bloomberg journalist
9:35 a.m. EST: AP fact check: Economists differ with Trump on tariffs
President Donald Trump‘s Tuesday night address to a joint session of Congress highlighted several of the initiatives he’s started in his first six weeks in office, but many of his comments included false and misleading information.
TRUMP: “Tariffs are about making America rich again and making America great again. And it’s happening. And it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
THE FACTS: Trump is banking on the idea that taxing imports is the road to riches for the United States. Most economists say Trump’s tariffs would hurt the country, as they’re tax increases that could raise the costs of goods in ways that could also harm economic growth. Trump suggests that the impact on inflation would be minimal.
When the Yale University Budget Lab looked at the tariffs that Trump imposed Tuesday on Canada, Mexico and China, it found that inflation would increase a full percentage point, growth would fall by half a percentage point and the average household would lose about $1,600 in disposable income.
The Associated Press
8:29 a.m. EST: U.S. commerce secretary hints at tariff carve-outs
U.S. Secretary of Commerce Howard Lutnick says meeting “somewhere in the middle” is a likely outcome for potential adjustments for U.S. tariffs on Canada and Mexico, noting that carve-outs for some industries are a possibility.
“There are going to be tariffs, let’s be clear,” Lutnick told Bloomberg Wednesday morning in a live interview.
“It will be 25 per cent but ... there will be some categories left out; it could well be autos, could be others as well,” he said, describing his team’s expectations.
According to the secretary, a decision by U.S. President Donald Trump and subsequent announcement on immediate next steps in the tariff fight is expected later today.
Charlie Buckley, CTVNews.ca national digital producer
6:32 a.m. EST: Canada requests WTO consultations with U.S. over ‘unjustified tariffs,’ says ambassador
Canada has requested consultations with the United States on “unjustified tariffs” at the World Trade Organization, Canada’s ambassador to the WTO in Geneva said on Wednesday.
“The U.S. decision leaves us with no choice but to respond to protect Canadian interests,” Ambassador Nadia Theodore said in a statement posted on LinkedIn. A WTO spokesperson confirmed the receipt of Canada’s request for consultations.
U.S. President Donald Trump’s new 25% tariffs on imports from Canada and Mexico took effect on Tuesday, along with fresh duties on Chinese goods.
The moves, which could upend nearly $2.2 trillion in annual trade, came after Trump declared that the top three U.S. trading partners had failed to do enough to stem the flow of fentanyl and its precursor chemicals into the United States.
“Everyone plays their position. I played mine today and on behalf of the Government of Canada, requested WTO consultations with the Government of the United States in regard to its unjustified tariffs on Canada,” Theodore said.
Reuters
What is a tariff?
Tariffs are a tax on imported goods. Like other taxes, they’re generally used by governments to help meet policy objectives and raise revenue.
The main goal of tariffs is usually to help boost and protect domestic producers by raising costs for importers. The trade-off is that those costs are often passed on to consumers.
Free-trade agreements generally either lower or remove tariffs between the member countries. But sometimes it doesn’t work out that way.
The president’s executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect just after midnight on Tuesday.
Trudeau on Tuesday said Canada is immediately introducing 25 per cent retaliatory tariffs on $30 billion worth of American products and will expand them to cover another $125 billion in U.S. goods in 21 days. It also plans to file claims through the existing free trade agreement between Canada, the U.S. and Mexico, as well as with the World Trade Organization.
Here’s how yesterday’s events unfolded:
10:30 p.m. EST: U.S. no longer ‘subsidizing’ Canada, Mexico: Trump
Trump repeated his claims that fentanyl being trafficked at the border is why America will no longer “subsidize” Canada and Mexico.
Hunter Crowther, CTV News National Digital Producer
10:05 p.m. EST: Trump spins tariffs, promises
Trump is now spinning the tariffs implemented today against Canada, Mexico and China, saying the duties are already having an impact as large automakers are now planning to build factories in the U.S. to avert tariffs.
Trump also said that tariffs make Americans rich.
“Tariffs are about making America rich again and making America great again,” Trump said. ”It’s happening, and it will happen rather quickly. There’ll be a little disturbance, but we’re okay with that. It won’t be much.”
Trump also announced reciprocal tariffs will go into effect April 2 on top of the ones already put into effect.
“That’s reciprocal, back and forth. Whatever they tax us, we will tax that,” he said.
Eric Ham, CTV News Political Analyst
9:57 p.m. EST: Trump on inflation; frustrated with Democrats
Trump addresses rising inflation only to say nothing about the trade war he implemented earlier today on America’s biggest trading partners.
Trump appears deeply agitated that Democrats aren’t showing support for his speech. This is his fifth such speech to a joint session of Congress — and all have been deeply polarized — so it’s surprising he’s so bothered by their lack of support.
Eric Ham, CTV News Political Analyst
9:38 p.m. EST: Trump gloats over first month in office
As expected, Trump is taking a victory lap for freezing funds for government agencies, mass deportations and rolling back all of Biden’s Executive Orders.
The president is also using this address to gloat, not just of his campaign victory, but the end of the criminal investigations that dogged him since leaving office.
But it’s important to note: the many Executive Orders signed by the president can easily be undone by his successor. To date, none of the current orders signed by Trump are making their way through congress to ensure they are enshrined into law and have lasting impact.
Eric Ham, CTV News Political Analyst
9:24 p.m. EST: Rep. Al Green escorted from U.S. Congress
Massive disruptions occurring as 78-year-old Rep. Al Green, D-Texas, has been removed by the Sergeant at Arms.
A stunning turn of events as House Minority Leader, Hakeem Jeffries, directly instructed his caucus to refrain from any protests that might draw attention to the Democrats.
The moment clearly underscores the deep partisan divisions shaping American politics.
Eric Ham, CTV News Political Analyst
9:20 p.m. EST: ‘America is back’: Trump begins address to Congress
Trump begins his speech by proclaiming “America is back.”
Hunter Crowther, CTV News National Digital Producer
9:10 p.m. EST: What will Trump talk about?
Trump will attempt to make this speech a victory lap for his policies, even amid the chaos occurring both at home and abroad.
It’s important to note, however, there’s a pause in the divisions within the Republicans on Capitol Hill. They have less than 10 days to find a way to fund the government or face a shutdown during the honeymoon phase of the president’s tenure.
Democrats will not be there to save Speaker Johnson this time around, much like what happened during former U.S. president Joe Biden’s tenure.
Eric Ham, CTV News Political Analyst
8:55 p.m. EST: The room fills before Trump’s address
The well in the House is quickly filling up. Vice-President J.D. Vance is really enjoying his elevated role, glad-handing with lawmakers throughout the stands before taking his place atop the well.
The entire Trump family is also on hand. Veterans Affairs Secretary Doug Collins will not be in attendance, as he is serving as the “designated survivor” of the Trump cabinet.
Of course, Elon Musk is also in the room awaiting the president’s address.
Eric Ham, CTV News Political Analyst
8:40 p.m. EST: Trump to address U.S. Congress
Trump is now 30 minutes away from his joint address to the U.S. Congress. We’re only minutes away before the lights go up in the hall and the Speaker will call the session into order. The president and First Lady Melania Trump have just entered the Beast, making their way just down the street to Capitol Hill.
Eric Ham, CTV News Political Analyst
8 p.m. EST: Ottawa will soon announce support to mitigate tariff impact
Trudeau virtually met with Canada’s premiers on Tuesday to discuss the U.S. tariffs against Canada, according to a statement released by the Prime Minister’s Office (PMO).
Finance Minister Dominic LeBlanc also said during the meeting the federal government “will soon announce an initial package of supports to mitigate the impact of U.S. tariffs on Canadian workers, families, and businesses.”
The statement also said that the prime minister and premiers discussed “how to reduce barriers to internal trade and labour mobility within Canada.”
Hunter Crowther, CTV News National Digital Producer
7:30 p.m. EST: ‘It’s time for us to break up with the U.S.‘: Saint John mayor
Saint John, N.B., Mayor Donna Reardon says the arrival of the tariffs marks a “sad day for our strong partnership with our neighbours to the south.”
In a public letter released Tuesday, Reardon addressed the U.S. tariffs placed on Canadian goods, noting that a number of major Saint John-area companies like Moosehead Brewery and Irving Oil depend on cross-border trade.
“These tariffs will have real consequences – from increased costs for essential goods and energy in the U.S., to potential disruptions for local businesses and families,” Reardon said.
The mayor even went as far as to say it’s time for Canada to “break up” with the U.S. She acknowledges there will be pain coming for her city and region but also sees the moment as a chance to grow.
Avery MacRae, CTV News New Brunswick video journalist
7:20 p.m. EST: Lutnick called Ford for ‘tough’ conversation
U.S. Commerce Secretary Howard Lutnick called Premier Doug Ford on Tuesday for a “tough and aggressive” conversation after the Ontario government announced its plan to slap a 25 per cent export tax on the electricity it supplies to three U.S. states, CTV News has learned.
Sources said Lutnick asked Ford to back off his retaliatory tariffs, but the Ontario premier refused.
Codi Wilson, CP24 journalist and Siobhan Morris, CTV News Toronto Queen’s Park bureau chief
6:30 p.m. EST: N.W.T. premier says U.S. tariffs harmful
Northwest Territories Premier R.J. Simpson is calling U.S. President Donald Trump’s decision to impose tariffs on Canadian goods short-sighted and harmful.
He says the territory shouldn’t have to bear the consequences of what he calls a reckless trade decision.
Simpson promises to reinforce the N.W.T’s own economic resilience by no longer purchasing from the U.S.
He also demanded that the North be included in critical nation-building investments.
The Canadian Press
5:30 p.m. EST: Kentucky governor says Canada-U.S. relationship ‘too important’
Kentucky Gov. Andy Beshear spoke to Vassy Kapelos on CTV’s Power Play Tuesday, saying the vast majority of Kentucky residents and Americans view Canada as one of their closest allies.
“This relationship is far too important to have a trade war,” Beshear said, adding that Kentucky residents should want a “strong Canada,” as nearly 25 per cent of the state’s exports go up north.
The governor said that tariffs will hurt Americans in a number of ways, including at the pump, at the grocery store and with housing prices.
“An immediate tariff isn’t going to create a factory overnight, but it is going to drive up prices overnight,” he said.
Beshear ended the interview by saying that the issue of tariffs has found common ground between Democrats and Republicans in Kentucky.
“If Mitch McConnell, Rand Paul and myself are all saying something is a bad idea, it’s because it’s a really bad idea.”
Hunter Crowther, CTV News National Digital Producer
5:20 p.m. EST: Foreign Minister Joly on Lutnick’s ‘in the middle’ remark
Appearing on CTV News Channel’s Power Play not long after Lutnick seemed to suggest there could be room to negotiate, and meet Canada “in the middle,” Foreign Affairs Minister Melanie Joly downplayed that possibility.
“Before the U.S. launched its trade war, they didn’t have any communication with us… We’ll see what will happen in the State of Union speech of the president tonight before Congress, but let’s be frank, we’ve done the work at the border,” Joly said. “We’ve done everything to make sure that the Americans would be happy.”
Joly said she has a call scheduled with Secretary of State Marco Rubio at noon tomorrow, but being “frank,” at the end of the day, “the only person that really does a deal is the president, and the people around him are always trying to guess what he will do.”
She said while Canadian officials will still continue to engage with Trump’s team, “none of them know exactly what the president wants.”
Rachel Aiello, CTV News national correspondent
5:10 p.m. EST: Energy trader says tariffs to impact Canadian producers primarily
Producers of Canadian energy are likely to be more impacted by tariffs compared to U.S. consumers, according to one energy trader.
Rebecca Babin, senior energy trader at CIBC Private Wealth, said in an interview with BNN Bloomberg Tuesday that U.S. consumers will bear some of the higher costs for crude oil driven by tariffs, but the “primary blow is going to be dealt to the Canadian producers.”
“That’s really because there’s no real other outlet for the heavy WCS (Western Canada select) crude to go. You can send some of it through the pipelines to Asia, but there’s no other way to move your crude outside of Canada,” Babin said.
Daniel Johnson, BNNBloomberg.ca journalist
5:58 p.m. EST: Tariffs on potash will hurt American growers: experts
In anticipation of the tariffs, Canadian potash giant Nutrien moved as much of the pink gold as possible south of the border, ahead of the spring planting season.
“While we will continue to serve our U.S. customers, the cost of tariffs would ultimately be borne by U.S. farmers,” Nutrien spokesperson Shawn Churchill said in a statement.
Canada is the world’s largest potash producer and exporter by a long shot. The mineral is primarily used to produce fertilizer.
Canada supplies more than 80 per cent of the potash used on American farms. The biggest buyers are U.S. corn farmers in the Midwest.
A 25 per cent tariff on potash gives farmers two options: increase their budgets or cut back on fertilizer.
Stuart Smyth, a professor of agricultural and resource economics at the University of Saskatchewan, suspects most farmers will accept the higher costs rather than risking their crop.
Allison Bamford, CTV News correspondent
4:50 p.m. EST: Trump could meet Canada ‘in the middle’: U.S. Commerce Secretary
With tariffs now in place on both sides of the border, U.S. Commerce Secretary Howard Lutnick is signalling there could be room to negotiate and “work something out.”
In an interview with Fox Business on Tuesday afternoon, Lutnick says he’s been speaking with Canadians and Mexicans “all day” about measures they’re taking to address the flow of fentanyl, adding “the president’s listening.”
“It’s not going to be a pause. None of that pause stuff, but I think (Trump is) going to figure out, ‘You do more and I’ll meet you in the middle some way,’ and we’re going to probably be announcing that tomorrow,” Lutnick said.
Stephanie Ha, CTV News Ottawa News Bureau
4:49 p.m. EST: Doug Ford pens letter to governors, senators, congress officials
In a post on X, Doug Ford says he “won’t hesitate” to increase the charge of retaliatory measures or “shut the electricity off completely.”
His letter, penned to officials from New York, Michigan and Minnesota, also emphasizes that Ontario is “prepared to add 25 per cent surcharge” to the electricity the province exports to the U.S.
Jermaine Wilson, CTV News Toronto journalist
4:40 p.m. EST: Manitoba pulls U.S. booze, offers tax deferrals to businesses
The Manitoba government offered tax deferrals to businesses in the province Tuesday and pulled United States products from liquor stores in response to tariffs imposed by U.S. President Donald Trump.
Businesses affected by the tariffs will have the option of deferring payments of both the provincial sales tax and the health and post-secondary education tax levy — commonly called the payroll tax — for at least three months.
“This will start with the February tax period and go for three months before we reassess. This allows businesses to keep cash and protect your jobs,” Premier Wab Kinew wrote on the X social media platform, formerly known as Twitter.
The ban on U.S. liquor is expected to affect about six per cent of products sold by Crown-owned Manitoba Liquor and Lotteries, including 409 spirits, 341 wines and many beers and other products. The ban only applies to products made in the U.S., not to U.S.-based brands such as Budweiser that are brewed in Canada.
Kinew has hinted at other retaliatory measures, such as forbidding U.S. companies from bidding on Manitoba government contracts, but there was no word on that possibility Tuesday.
The Canadian Press
4:30 p.m. EST – What will cost more, and why?
With both the U.S. and Canadian governments imposing tariffs, consumers on both sides of the border will be paying more.
CTV News’ National Correspondent Rachel Aiello explains why that is, and what will cost more.
Trump’s tariffs on Canada will make Canadian products going into the U.S. more expensive, which will hurt home-grown businesses who export.
But, the U.S. president’s trade action will also end up costing everyday Americans, as U.S. companies that buy Canadian will bear the cost and will likely pass that on to their customers.
It goes both ways, though.
Canada’s retaliation targets key U.S. sectors, but consumers on this side of the border will see prices rise.
Among what could cost you more depending on your habits, are:
• your morning coffee or orange juice;
• bathroom essentials such as shampoo and deodorant;
• your undergarments and the clothing you put on top;
• cocktail essentials such as liquor and bitters;
• plus handbags, helmets, and home-building materials.
Federal officials have said these items were chosen to minimize the impact on shoppers in this country, as there are made-in-Canada alternatives.
And this is just phase one. Canada plans to impose another round of tariffs on a longer list of U.S. products in 21 days.
Rachel Aiello, CTV News national correspondent
4:15 p.m. EST: N.L. premier says tariffs are part of Trump’s ‘imperialistic agenda’
Newfoundland and Labrador Premier Andrew Furey offered a grim view of Trump’s tariffs. Echoing Trudeau, he said tariffs are part of an “imperialistic agenda” that includes turning Canada into the 51st U.S. state.
“The president is using the excuse of fentanyl and conflating issues to drive tariffs in an ultimate strategy to create economic chaos across Canada and advance his imperialistic agenda,” Furey told CTV News Channel. “Make no mistake about it, the president is not joking when he says ‘the 51st state.’”
Furey said that during a recent trip by Canadian premiers to Washington DC, U.S. officials made it clear that Trump should be taken at his word about annexing Canada.
“The message that I received down there, and the message that we need to make sure that we understand as Canadians, is that this man is serious in his agenda, one which I believe is to reset a new world order with an imperialistic approach for the United States,” Furey said. “And that is going to require incredible courage by Canadians to meet the moment, but I know they will.”
Daniel Otis, CTVNews.ca journalist
4:11 p.m. EST: Ford says U.S. will get ‘hurt tremendously
Ontario Premier Doug Ford made an appearance on MSNBC on Tuesday afternoon, warning that Americans will get “hurt tremendously” as a result of the trade war started by Trump.
“President Trump had a mandate to come in and create more jobs. That is the total opposite (of what will happen). Manufacturing plants will close, assembly lines will shut down within the auto sector in the next week, unemployment will go up and inflation will go up, the cost of gas will go up,” Ford said.
Ford told MSNBC he is committed to cutting off “everything we possibly can” to the U.S., including nickel exports.
“I don’t want to go to China, I don’t want to ship it out but if he (Trump) keeps putting out these threats and continues to attack our families and businesses we will have no choice,” he said. “I am the first to say let’s tariff China. They are the problem, not your closest friend and ally.”
Chris Fox, CP24 managing digital producer
4:09 p.m. EST: S&P 500 and Dow end lower dragged down by trade tensions
The benchmark S&P 500 and Dow finished lower on Tuesday as trade tensions escalated following U.S. President Donald Trump’s new tariffs on Canada, Mexico and China.Citigroup and JPMorgan Chase & Co fell, sending the bigger banks index lower.
The CBOE market volatility index rose 0.70% to its highest since December 20.According to preliminary data, the S&P 500 lost 71.04 points, or 1.21%, to end at 5,778.68 points, while the Nasdaq Composite lost 67.12 points, or 0.37%, to 18,283.07.
The Dow Jones Industrial Average fell 673.34 points, or 1.56%, to 42,517.90.Car makers Ford and General Motors, which have vast supply chains across North America, fell. The domestically focused Russell 2000 index dropped.
Reuters
3:49 p.m. EST: Saskatchewan premier: Canada’s response can’t cause undue harm to Canadians
Saskatchewan Premier Scott Moe vowed to cut down barriers on interprovincial trade and improve connections with markets outside the U.S. in a statement published Tuesday afternoon.
“Canada’s response needs to be economically sound and reasoned. It should not result in the same kind of self-inflicted harm that Trump is imposing on his citizens,” he wrote in the statement published on X, adding the tariffs will drive up the cost of oil, potash and uranium.
In 2024, Saskatchewan exported $5.8 billion in agri-food goods to the United States. Moe said his cabinet will meet tomorrow to “consider all options.”
Luca Caruso-Moro, CTVNews.ca digital breaking news assignment editor
3:40 p.m. Group wants new tax holiday for food
A restaurant industry group wants to see a new GST/PST tax holiday for food.
“That holiday created 34,000 extra jobs in our industry,” Restaurants Canada spokesperson Richard Alexander told CTV News Channel. “Now that we’re facing tariffs, we think it’s not the best policy for governments to be taxing food, no matter where it comes from.”
Tariffs and retaliation will lead to costs rising for restaurants, as well as customers, who may have less money to spend eating out. Approximately 1.2 million people work in Canadian restaurants, making them the fourth largest private-sector employer.
“We’re often the sector that is first impacted by any economic slowdown and are worried about our employees,” Alexander said.
Alexander spoke to CTV News from Washington D.C., where he attended a Congressional reception hosted by an American restaurant association.
“The trade negotiators that our organization works with, they tell us that the way to get this over fast is to force inflation in the States to go as high as possible and as quickly as possible,” Alexander said. “That will get elected representatives in the states hearing from their constituents and getting this ridiculous trade war to an end.”
Daniel Otis, CTVNews.ca journalist
3:30 p.m. EST: Trump ignites trade war based on ‘false information’
Trump posted this morning on social media: “Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?”
But U.S. banks have been operating in Canada for more than a century. The Canadian Bankers Association, an industry group, stated, “there are 16 U.S.-based bank subsidiaries and branches with around C$113 billion in assets currently operating in Canada,” and that “U.S. banks now make up approximately half of all foreign bank assets in Canada.”
Once again, the world is witnessing the wreckage hoisted on the global economy as the American president ignites a massive trade war based on false information.
Eric Ham, CTV News political analyst in Washington, former congressional staffer
2:55 p.m. EST: Relationship with ally has changed: Canadian Association of Petroleum Producers CEO
The president and CEO of the Canadian Association of Petroleum Producers says Canada’s relationship with a longtime ally and trading partner has fundamentally changed.
Lisa Baiton says without greater global reach for oil and gas exports, Canada has little trade leverage with the United States.
She says Canada urgently needs a policy overhaul that would allow infrastructure projects held back by environmental opposition to move ahead.
The Canadian Press
2:50 p.m. EST: Tariffs could halt auto manufacturing: association representative
Canadian Automobile Dealers Association representative Huw Williams says American automakers and dealers need to be speaking to the White House to emphasize how tariffs will interrupt the supply chain and bring North American vehicle production to a halt.
“There’s no doubt that these tariffs are bad for automotive consumers, they’re bad for the auto industry, bad for car dealers, and they’re bad for the economies on both sides of the border,” Williams told CTV News Channel.
“We’re hoping that reasonable heads prevail on this, particularly in the United States.”
Daniel Otis, CTVNews.ca journalist
2:35 p.m. EST: Canada could lose 1.5 million jobs in first 12 months of trade war
Canadian Labour Congress President Bea Bruske says Canada could lose 1.5 million jobs in the first 12 months of a trade war.“First and foremost, we need to make sure that workers are protected,” Bruske told CTV News Channel.
She also said that Canada needs to reduce its reliance on trade with the U.S. and invest in rails, ports and roads to get products and services to other markets.
“This is an economic war. We are being attacked,” Bruske said. “We have tried rational conversation for the last 30 days and yet we are still here. So this is a time for us as Canadians to sharpen our elbows.”
Daniel Otis, CTVNews.ca journalist
2:00 p.m. EST: Banks say interest rates could fall harder, faster with tariffs
Two of Canada’s largest banks say interest rates could fall faster and ultimately end up lower than previously predicted, as the consequences of a trade war with the U.S. are set to ripple through the Canadian economy.
“We now look for the quarter-point pace to continue in each of the next four meetings until July, taking the rate to two per cent,” wrote Douglas Porter, Bank of Montreal’s chief economist and managing director of economics, in a BMO Economics note published Tuesday.
“The net risk is that we eventually go even lower, if the (Bank of Canada) is comfortable with the prevailing inflation backdrop later this year.”
In a similar note from Royal Bank of Canada on Tuesday, the lender’s chief economist, Frances Donald, and its assistant chief economist, Cynthia Leach, said that the Bank of Canada has until now been “noncommittal” in how it would react if tariffs were implemented. “Without tariffs, we expected the BoC to gradually cut rates to 2.25 per cent.
“Now, we expect that the longer tariffs remain in play, the greater the likelihood that rates fall faster and by a larger magnitude,” they wrote.
The Bank of Canada is set to make its next policy decision on Wednesday, March 12.
Jordan Fleguel, BNN Bloomberg journalist
1:40 p.m. ET: Strategist says tariffs unlikely to last, but present risk to TSX
Tariffs present a significant downside risk to the S&P/TSX Composite Index if they remain in place, according to one strategist who thinks they are being used by U.S. President Trump as a negotiation tactic to get an updated version of the United States-Mexico-Canada Agreement (USMCA).
Ohsung Kwon, a U.S. and Canada equity strategist at BofA Securities, said in an interview with BNN Bloomberg Friday that absent tariff concerns, the overall macro cycle remains “pretty favourable for equities in general.”
“For the TSX, obviously the biggest risk is if the tariffs that got imposed today are permanent, and we estimate that if this is actually permanent, then it could essentially wipe out the entire EPS (earnings per share) growth that is expected for the TSX for this year, which is about 10 per cent,” he said.
“So that’s going to be very detrimental for the TSX. Not only the TSX, but if this becomes more of a global trade war, then it’s going to be very bad for the macro cycle and the equity markets in general. Our house view is that these are not permanent, especially on Canada and Mexico, and if that’s the case, I think we could potentially see (a) relief rally.”
Daniel Johnson, BNNBloomberg.ca journalist
1:28 p.m. EST: Trump’s tariffs ‘make no sense’: Joly
Foreign Affairs Minister Melanie Joly says the tariffs Trump imposed today “make no sense.”
“Jobs will be lost, and prices will go up – on both sides of the border,” Joly posted on X.
She reiterated Prime Minister Justin Trudeau’s response to the tariffs, adding that Canada remains “prepared to take additional measures.”
Lynn Chaya, CTVNews.ca digital breaking news assignment editor