White House announces temporary, specific reprieve – but press secretary doubles down on Trump’s 51st state comments
Canadian automakers have been granted a temporary one-month exemption from American tariffs as discussions between US and Canada negotiators on the trade war continue.
White House press secretary Karoline Leavitt said on Wednesday afternoon that President Trump had spoken with automaking giants Stellantis, Ford and General Motors, and would permit a pause on the tariffs announced yesterday before reciprocal measures take effect on April 2.
“At the request of the companies associated with USMCA [the United States-Mexico-Canada Agreement], the president is giving them an exemption for one month so they are not at an economic disadvantage,” Leavitt said. “They requested the call, they made the ask, and the president is happy to do it.”
Trump spoke with Canadian prime minister Justin Trudeau by phone for around 50 minutes on Wednesday and talks are continuing between representatives, according to the Globe and Mail.
But Leavitt said on Wednesday that Trump “feels very strongly it would be very beneficial for the Canadian people to be the 51st state of the United States,” a remark unlikely to go down well with Canadian negotiators.
Trudeau said after Trump moved ahead with tariffs yesterday that the president wanted to destroy the Canadian economy to further his oft-repeated aim of annexing Canada.
The president took to Truth Social on Wednesday to mock Trudeau, doubling down on his controversial claim that Canada is not doing enough to stem the flow of fentanyl southwards and alleging the prime minister is using the trade crisis to stay in power.
Canada’s five-year bond yields plunged as Trump’s tariff war sparked market turmoil. RBC and BMO predict deeper Bank of Canada rate cuts, with the benchmark rate possibly hitting 2% by July.https://t.co/sVA2QMzSyA
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 5, 2025
The US launched 25% tariffs on all Canadian goods entering the country and a 10% levy on Canadian energy yesterday, sparking a wave of planned countermeasures from Ottawa.
The news sent the stock market plunging – but both the S&P 500 and Nasdaq Composite rebounded after Wednesday’s announcement of a temporary reprieve for automakers strengthened hopes both governments could reach a deal.
Trump’s commerce secretary Howard Lutnick has raised the prospect of the pair finding a “middle ground” in negotiations. Canada is unwilling to lift its own countertariffs if Trump leaves any US measures in place, a senior Canadian government official told Bloomberg.
The sweeping tariffs on Canadian imports had originally been scheduled to take effect at the beginning of February but were postponed for 30 days after discussions between Trump and Trudeau last month.
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