Canadian Prime Minister Justin Trudeau is not ready to lift retaliatory tariffs on goods from the United States unless U.S. President Donald Trump lifts all tariffs on Canadian goods, a senior official told the Associated Press (AP) on Tuesday, speaking on condition of anonymity.
Previously, US Commerce Secretary Howard Lutnick announced the possibility of lifting some tariffs, as a sign of a softening of the US government's stance, and told Bloomberg that Trump is planning an announcement about this this afternoon, likely an announcement of the waiver of tariffs on the automotive industry.
"There will be tariffs, to be clear, but he's thinking about what parts of the market can maybe... maybe... be considered for relief," Lutnik said.
The Canadian government has indicated that it is not interested in anything other than the complete abolition of tariffs.
"We are not interested in being halfway and getting some reduced tariffs. Canada is asking for tariffs to be eliminated," Canadian Finance Minister Dominique LeBlanc told his country's public media service.
Two days ago, Trump imposed tariffs on imported goods from the US's three largest trading partners - Mexico, Canada and China, which provoked retaliation from those countries and a tariff war, deep turmoil in the stock markets and fears of American consumers.
Tariffs for Mexico and Canada are 25 percent, except for Canadian energy, which is hit by a ten percent tariff.
On April 2nd, Trump plans, as he explained, "reciprocal" tariffs to match tariffs, taxes, and incentives offered by other countries. This could lead to higher tariffs and higher prices for all goods around the world.
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