President Trump has again temporarily suspended 25% tariffs on Canadian goods, granting a one-month reprieve. While this is positive for Canada, Prime Minister Trudeau described a “colourful” phone call with Trump, revealing ongoing trade tensions and uncertainty regarding a long-term resolution. Trudeau emphasized that negotiations continue, but a trade war initiated by the U.S. is expected to persist. Despite some optimism for short-term relief, the situation remains volatile, with the possibility of further tariff changes in April.

Read the original article here

Prime Minister Trudeau recently described a phone call with President Trump as “colorful,” highlighting moments of tension during negotiations to resolve the ongoing trade dispute. The conversation, according to Trudeau, involved difficult discussions aimed at finding a way to end the American-led trade war, but he expressed pessimism about a quick resolution.

Negotiations are currently underway to secure tariff relief for specific sectors, yet Trudeau indicated that there’s no indication President Trump is prepared to lift all tariffs. He predicts the trade conflict will likely persist for the foreseeable future.

Discussions are also ongoing regarding a potential temporary suspension of all tariffs until early April, before the anticipated implementation of further retaliatory tariffs by the United States. However, Trudeau remains hesitant to make definitive statements until concrete agreements are reached.

Adding to the complexity, President Trump concurrently reached a deal with Mexico to temporarily exempt Mexican products from tariffs, offering a short-term reprieve. This action followed comments from the U.S. Commerce Secretary suggesting the possibility of temporarily dropping tariffs on both Canadian and Mexican goods.

However, a senior government official revealed a less diplomatic side to the conversation. The official reported that President Trump used profanity on multiple occasions, particularly while discussing dairy products, a long-standing point of contention. The official also noted that Trump’s anger extended to discussions about fentanyl, where he vigorously challenged Trudeau’s defense of Canada’s efforts to combat the opioid crisis. The disagreement stemmed from different perspectives on how the problem’s severity should be measured.

Despite these heated exchanges, the call reportedly concluded on a relatively amicable note, with an agreement to explore the possibility of exempting CUSMA-compliant goods from tariffs, contingent on further negotiations. The official stressed that this conversation, however, did not constitute a commitment or resolve to a solution. The situation reflects the ongoing tension and uncertainty surrounding the trade relationship between the two countries. The future of this ongoing trade war, and the nature of the relationship between these two important economic partners, remains uncertain.