Canadian Prime Minister Justin Trudeau and the U.S. President engaged in a phone conversation on Wednesday regarding the ongoing trade conflict. Both countries’ officials have been in frequent communication throughout the day discussing potential solutions, including the temporary removal of all tariffs or exemptions for specific industries.
The situation has been described by Canadian officials as dynamic, uncertain, and disorderly.
Following President Donald Trump’s recent decision to exempt Canadian-manufactured vehicles from tariffs, there is a chance that additional exemptions may be announced in the future, although no definitive assurances have been given, according to officials.
The president’s advisors have vacillated on the possibility of reaching a compromise on tariffs, initially hinting at potential concessions only to later suggest that tariffs could still be imposed, albeit at reduced rates.
Foreign Affairs Minister Mélanie Joly, speaking in Toronto on Wednesday, emphasized ongoing negotiations with the U.S. over tariffs, highlighting the necessity for Prime Minister Justin Trudeau and U.S. President Donald Trump to reach an agreement.
Canada is actively working to dissuade President Trump from disrupting free trade between the two nations. The imposition of a 25% tariff on nearly all Canadian goods by the president has caused instability in markets and consumer confidence on both sides of the border.
The recent call between Trudeau and Trump marked their first direct communication since the trade dispute commenced. The conversation, which lasted approximately 50 minutes, reportedly became intense at times and involved Vice-President JD Vance and U.S. Commerce Secretary Howard Lutnick.
A senior Canadian official revealed that the U.S. proposed lifting some tariffs in exchange for Canada withdrawing its retaliatory measures, which include tariffs on American products valued at $30 billion, set to increase to $155 billion within three weeks. Canadian provinces are also considering additional countermeasures.
Trudeau rejected these offers, insisting that Canada will only consider removing its retaliatory tariffs if the U.S. eliminates all imposed tariffs, the official added.
During a business-oriented event in Toronto, Foreign Affairs Minister Mélanie Joly emphasized that President Trump holds the pivotal decision-making role in the current U.S. federal administration.
Joly characterized the ongoing situation as a “psychodrama” that could extend for an extended period.
