Trump grants auto tariff pause, tariffs on Canada remain after call with Trudeau

WASHINGTON — The Big Three automakers were able to secure a month-long tariff exemption on Wednesday after a conversation with U.S. President Donald Trump — but Prime Minister Justin Trudeau wrapped a call to the Oval Office with no such guarantees for Canada.

Trump has granted a one-month exemption for any vehicles coming through the Canada-U.S.-Mexico Agreement on trade, also known as CUSMA.

White House Press Secretary Karoline Leavitt said during a briefing Wednesday afternoon that the move comes after the automakers — Stellantis, Ford and General Motors — asked for help.

"Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with (CUSMA), the president is giving them an exemption for one month so they are not at an economic disadvantage," Leavitt said, reading from a statement by Trump.

Leavitt said the purpose of the reprieve is to give automakers time to "shift production here to the United States of America where they will pay no tariff. That's the ultimate goal."

She later added that Trump is open to other carve-outs.

Trump followed through Tuesday on his threat to impose sweeping tariffs on Canada and Mexico — something Trudeau described as "a very dumb thing to do" when he announced retaliatory tariffs on $30 billion in American goods the same day. Another $125 billion in Canadian tariffs are set to come into effect 21 days later.

Canadian goods imported into the U.S. are now subject to 25 per cent tariffs, except for energy, which is taxed at 10 per cent.

Foreign Affairs Minister Mélanie Joly told the Toronto Region Board of Trade on Wednesday that Canada could still exert pressure through products the U.S. relies on, such as uranium, potash and energy.

"We haven't put that on the table yet," she said, adding they are "cards that we could potentially play if this would escalate — and the U.S. knows that."

"But in order for us to be using any other new cards, we need to make sure that Canadians are on board and that premiers are on board, and I think that we've seen, bit by bit, even more unity," she added.

Alberta Premier Danielle Smith said her province's oil and gas exports are a "trump card" in the trade war with the United States.

"Whether the U.S. president wishes to admit it or not, the United States not only needs our oil and gas today, they are also going to need it more and more with each passing year," she told reporters in Medicine Hat, Alta., where she announced the province's plan to retaliate and enhance security at the border.