Trump Continues to Walk Back on Tariff Threat

A heated call between Trudeau and Trump with profanity 

When asked to describe his telephone conversation with US President Donald Trump, Canadian Prime Minister Justin Trudeau diplomatically said it was "colourful".

The Wall Street Journal reported the 50-minute call got heated and involved some profanity from Trump.

Tensions rose when the two leaders discussed dairy products, and later fentanyl. 

Trudeau insists on having all US tariffs removed

During the conversation, Trudeau stressed the US government's own border seizure data shows Canada is not much of a problem, and that the country is doing all it can to reduce the amount of drugs going across the border. 

Customs and Border Protection Data show in the fiscal year 2024, 43 pounds of fentanyl was seized at the northern border, compared to more than 21,000 pounds from Mexico in the same period.

Trump and Vice President JD Vance, who was also on the call, tried to push back on Trudeau's defence, saying seizures weren't the right way to measure the problem. Trudeau replied there's no other way to actually quantify the problem.

Maybe that's what got Trump annoyed?

He claimed on social media that the call "ended in a 'somewhat' friendly manner."

In the end Trump backed down -- temporarily -- by putting a pause on tariffs on Canadian exports that are "compliant" with the Canada-US-Mexico Agreement (CUSMA) until April 2. 

Despite the reprieve, the Canadian government is not removing retaliatory tariffs it levied on US$30 billion worth of American imports.

No more American bourbon on liquor shelves

"Our goal is to get all tariffs removed," Trudeau said to reporters today.

"We are in a moment right now where Canada has a very, very strong bargaining position, because Canadians are so united and unequivocal about standing up for our country and standing up for our fellow citizens and being very firm that this is an unjustified and unjustifiable trade war launched by the Americans," he said.

For example, 80 percent of the potash American farmers use is from Canada, along with things like crude oil, electricity and aluminium.

Premiers of British Columbia and Ontario are going to impose their own tariffs too: BC's Premier David Eby said his government will levy fees on trucks traveling through the province up to Alaska, while Ontario Premier Doug Ford will slap a 25 percent levy on electricity that supplies power to 1.5 million Americans in Minnesota, New York and Michigan.

Many government-owned liquor stores have taken alcohol products from Republican states off shelves in a bid to get those places to appeal to Trump to back down; already bourbon producers in Kentucky are very worried as the state exported US$9.3 billion in products in 2024.

It's quite amazing how Trump forcefully imposed the tariffs, then has walked back so quickly -- perhaps from seeing the stock market tanking and losing confidence in him and the rollercoaster ride that never seems to end.

Canadians are united more than ever to get through this insanity, and Trump has pushed the country to rebuild its domestic economy to be stronger and less reliant on the US.