Canada has avoided a trade war, for now.
After weeks of enduring threats from U.S. President Donald Trump, he and Prime Minister Justin Trudeau found common ground on Monday during an afternoon phone call. Tariffs were put off for 30 days.
Trump agreed to the delay after Trudeau said he would expand Canada’s existing $1.3-billion border protection plan. Canada will also list cartels as terrorists, launch a new cross-border task force, release $200 million more to fight drug trafficking, and appoint a fentanyl czar.
The two countries aren’t out of the woods yet. The president wrote yesterday that he would “see whether or not a final Economic deal with Canada can be structured” over the next month.
Here were the updates for Tuesday, Feb. 4
5:25 p.m. EST: Trudeau says Canada will work until ‘tariffs are off the table altogether’
Speaking at a Lunar New Year event in Ottawa on Tuesday night, Prime Minister Justin Trudeau publicly addressed the tariff reprieve for the first time.
“We will keep working until those tariffs are off the table altogether,” Trudeau said during his speech.
Trudeau also spoke to the crowd about coming together and supporting other Canadians during “challenging times.”
“We pull together when we’re faced with challenges, and that’s what we’ve seen from coast to coast to coast. We are more aligned than ever. We are more united than ever,” he said.
5:00 p.m. EST: Energy minister says Trump’s tariff not ‘just about the border’
Energy and Natural Resources Minister Jonathan Wilkinson is in Washington, D.C. today to discuss the Canada-U.S. partnership, particularly when it comes to energy and minerals.
In an interview with CTV’s Power Play with Vassy Kapelos, Wilkinson said U.S. President Donald Trump’s tariff threat is not “just about the border,” adding: “there are some other things that the president is interested in.”
“Certainly, one of the things you hear about down here is the whole issue of the trade balance, and there’s some important things that Canada needs to make sure are understood down here in terms of the trade balance, where overall Canada actually has a trade surplus with the U.S. But if you actually split out energy, manufactured goods and those kinds of things, the Americans have a huge trade surplus with us.”
Asked by Kapelos whether that message about a trade surplus is resonating with U.S. officials, Wilkinson said, “I think it is.”
“The other part of the conversation that I’m having here is, rather than talking about how we actually hurt each other, there are enormous opportunities for collaboration that can help President Trump achieve some of the goals that he campaigned on,” Wilkinson said.
4:27 p.m. EST: Small expressions of patriotism across Canada
“It’s nice to see Canadians give a punch back,” said Vancouver resident Dallas Nikal. “It’s also nice to see Justin Trudeau give a punch back.”
Some Canadians say they’re shopping local as a push back against Trump. “If I pick up that tomato sauce and it is from the U.S., I put it right back in the shelf,” a St. John’s, N.L. shopper told CTV News.
Canadian sports fans took their patriotism and outrage to an extra step by booing the American national anthem in several cities.
“Nothing unites a village more than a crisis,” said Saint Mary’s and Dalhousie University Professor Ed McHugh, who’s also a long-time basketball coach and executive.
“What is happening here is, people are united against someone they see as a common enemy, and these people are rallying around it.
”Americans returned the favour in Nashville last night during a Senators vs. Predators game, booing O Canada.
4 p.m. EST: Canada ‘agreed to be very, very strong’ on the border, Trump says
Speaking from the Oval Office, U.S. President Donald Trump was asked if a conversation with China could lend itself to the type of tariff freeze Mexico and Canada have been granted.
Trump said “we’ll see what happens.”
“It’s a short-term freeze with Mexico, as you know, and with Canada. But they’ve agreed to be very, very strong on the border, stronger than they ever were, by far, by a factor of about 30,” Trump said.
“The border is now closed, really closed.”
3:54 p.m. EST: Quebec premier says North American free-trade agreement should be reopened now
Quebec Premier Francois Legault says talks should begin as soon as possible on renegotiating the North American free-trade agreement.
In a special statement to the legislature, he said the uncertainty that is being created by constant threats of U.S. tariffs is like injecting “poison” into the economy.
The Canada-United States-Mexico Agreement, signed in 2018 and entered into force in 2020, governs trade across the continent and replaces the original deal that went into effect in 1994.
The Canadian Press
3:40 p.m. EST: Doug Ford downplays hot mic comments saying he was pleased Trump won
Progressive Conservative Leader Doug Ford is downplaying some hot mic comments he made to supporters Monday, saying he was pleased when Donald Trump won the U.S. election in November.
“On Election Day, was I happy this guy won? One hundred per cent I was. Then the guy pulled out the knife and f***ing yanked it in us,” Ford told supporters at a campaign stop Monday as the country prepared to respond to U.S. tariffs, which were eventually postponed at the eleventh hour.
It wasn’t clear whether Ford realized the camera was catching his comments.
3:20 p.m. EST: Tariff talk sours Canadian travellers' Florida plans
For 24 years, Canadian traveller Bob Bloomer and his wife have vacationed from Ontario to Florida every winter to enjoy the sunshine. This year, the Bloomers are staying home.
“With the stuff that Trump has been pulling for the past month, for years actually, I just can’t justify going down right now,” said Bloomer.
However, Bloomer is keeping an open mind about one day returning to the Sunshine State.
“I think Canadians have to remember; we are not mad at all Americans,” said Bloomer. “We are mad at Trump.”
2:45 p.m. EST: What did the U.S. get from deals to pause tariffs on Canada and Mexico? Not much, observers say
President Donald Trump’s threatened tariffs against Canada and Mexico — now on hold for a month — risked blowing up North America’s economy. What did the United States get out of his deals to pause the import taxes against the two nations?
Not all that much, according to people outside the administration looking at the agreements.
Inu Manak, a fellow for trade policy at the Council on Foreign Relations, said Trump’s tariff threats “were certainly not necessary,” but his objectives in making the threats are “purposefully vague so that he can declare victory regardless of the outcome.”
“A win is anything Trump wants it to be,” she said. “There isn’t any grand strategy or rational explanation for what he’s doing. It’s chaos for the sake of chaos.”
The Associated Press
1:55 p.m. EST: Joly says Canada is in ‘action mode’
Foreign Affairs Minister Melanie Joly discussed Canada-U.S. relations at a talk with the Chamber of Commerce of Metropolitan Montreal on Tuesday afternoon.
Asked by reporters what Trudeau can do to convince Trump to extend the tariff reprieve, Joly said the federal government needs to “make sure that the border plan is implemented.”
She said Canada is in “action mode” and that officials will continue to lobby Canada’s case to U.S. officials.
“Ultimately, what we know is the only ones that will be able to convince President Trump are Americans themselves,” Joly said. “So, we need to continue the pressure to make sure that we lobby Washington.”
1:15 p.m. EST: Even with the pause, Canadians still opting to shop local
Bill Barnett went to Stong’s Market in North Vancouver on Monday to pick up two items: tomatoes and energy bars. He made sure the ones he bought were made in Canada.
“Keep the pressure up. Even if the tariffs are waived for a while, just continue to buy Canadian,” said Barnett.
“We can’t back away from this. You shouldn’t be ashamed to just stand up and say, ‘We’re just not going to take it anymore.’”
He’s not alone. The threat of punishing U.S. tariffs has many B.C. shoppers seeking out made-in-Canada products at the grocery store, and avoiding American ones.
Peter Dunn also came to Stong’s on Monday with a list, and a goal: only buy products that weren’t made in the U.S.
“This is Italian, these chocolate bars are from Switzerland, this cheese in Canadian. I think everything in my cart is not sourced from the U.S., so that was the plan,” said Dunn. “I think we’re pretty much on the buy Canadian train until the U.S. returns to normal operations.”
12:55 p.m. ET: What will the fentanyl czar do?
Public Safety Minister David McGuinty is shedding some new light on what exactly Prime Minister Justin Trudeau’s newly-promised fentanyl czar will do.
Speaking at one of the countries’ busiest border crossings, McGuinty said the role – announced in an effort to appease U.S. President Donald Trump’s concern about the flow of illegal drugs across the northern border – will work with both Canadian and U.S. officials.
“The words were chosen carefully, ‘fentanyl czar,’” McGuinty said.
He said this to-be-named individual “will serve as the main interlocutor between the Canadian and U.S. governments, and will enhance our collaboration in combating fentanyl.”
“Fentanyl is an extraordinarily dangerous drug, and I mean extraordinary, extraordinarily dangerous,” the minister said.
12:46 p.m. EST: Public safety minister at border security exercise
Public Safety Minister David McGuinty is attending a border security exercise at the Emerson port of entry in Manitoba.
Speaking at the beginning, McGuinty called it “a good thing” that the Canada-U.S. trade war is at least on pause. “What was our objective yesterday? Stop the tariffs. What’s our objective today? Stop the tariffs. What’s our objective tomorrow? Stop the tariffs. We’re going to do what we have to do… because there’s so much on the line for everyday Canadians.”
McGuinty is joined by Manitoba Premier Wab Kinew, members of the Canada Border Services Agency, the Royal Canadian Mounted Police, and other federal and provincial partners.
As part of the press event, officials will be highlighting a Designated Safe Examination Area (DSEA) which allows the CBSA to detect, identify and interdict fentanyl at ports of entry.
There’s also a RCMP Black Hawk helicopter on site, that will be used to monitor the Canada-U.S. border.
12:29 p.m. EST: Trump, Xi won’t speak, Wall Street Journal reports
U.S. President Donald Trump and Chinese leader Xi Jinping will not speak on Tuesday, a U.S. official told the Wall Street Journal, contrary to what trade adviser Peter Navarro said earlier in the day.
Reuters
12:10 p.m. EST: Trump wants to reshape international economic system, expert says
In a move that has caught many allies off-guard, the Trump administration is pursing an “audacious” plan to reshape the international economic system that has governed global trade since the end of the Second World War, according to an expert.
In an interview with CTV’s Your Morning Tuesday, Ian Lee, an associate professor at Carleton University’s Sprott School of Business, said, “(This vision) is radical, in my judgment, it is nothing less than the reform of an entire international economic system … often just simply called multilateralism.”
Lee said according to a key document, published by Stephen Miran, the chief economist to Donald Trump in the White House, the U.S. president is seeking to use tariffs and market access as leverage to force other countries to open protected parts of their economies to U.S. corporations.
11:35 a.m. EST: Buy Newfoundland and Labrador
Despite the trade war reprieve, Newfoundland and Labrador revealed a new logo this morning, which will indicate what products are made locally.
It’s an effort to strengthen internal purchasing and dissuade consumers’ reliance on U.S. products. Apart from the logo, the province will also launch a marketing campaign to encourage people to shop local.
“As you walk in to buy … as you walk in to exercise what economic authority you have as a consumer, you can give some pause for thought,” said Premier Andrew Furey during a news conference Tuesday.
10:50 a.m. EST: Mexican cartels expanding in Canada, says Navarro
Peter Navarro, senior trade adviser to U.S. President Donald Trump, said Mexico had been “very cooperative” on efforts to crack down on the influx of fentanyl into the U.S., and Canada had started to understand that it needed to do more.
Navarro insisted during an event hosted by Politico Live that Trump’s plans to implement 25 per cent tariffs on Canadian and Mexican imports - now delayed by one month until March 1 - were squarely focused on cracking down on drugs, not aimed at starting a trade war.
Navarro said Mexican cartels were also expanding rapidly in Canada, which meant Canada had become a leading source of small, duty-free shipments of drugs under the de minimus exemption that will be revoked if the tariffs take effect. Canada also had “big” visa issues and had let people on the “terrorism watchlist” enter the United States, Navarro said.
Reuters
10:36 a.m. EST: Trump to speak with Xi today: Navarro
U.S. President Donald Trump will speak with Chinese President Xi Jinping on Tuesday, his top trade adviser Peter Navarro told a Politico Live event, as new 10 per cent tariffs on Chinese imports took effect, spurring retaliatory tariffs announced by Beijing.
Asked how U.S. consumers and companies should understand the China tariffs, Navarro told Politico: “Let’s see what happens with the call today.”
White House press secretary Karoline Leavitt earlier gave no updates on the Trump-Xi call, but said it would happen “soon.”
Reuters
9:50 a.m. EST: Markets calm
Some calm is returning to Wall Street, and U.S. stock indexes are making only modest moves after much of Europe and Asia rose earlier in the day.
The S&P 500 was little changed in early trading Tuesday, a day after swinging sharply on worries that President Donald Trump’s tariffs could spark a punishing trade war that would hurt economies around the world, including the United States.
In Toronto, the S&P/TSX Composite Index was down 1.14 per cent as of 9:40 a.m. EST, erasing a slight uptick at the open.
- Live market data exclusively on BNNBloomberg.ca
The Dow Jones Industrial Average was down 45 points, or 0.1 per cent, and the Nasdaq composite was up 0.3 per cent. Trump on Monday agreed to delay his tariffs on Canada and Mexico for a month.
The Associated Press
9:30 a.m. EST: China unleashes counter tariffs
China countered Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports Tuesday, as well as announcing an antitrust investigation into Google and other trade measures.
China said it would implement a 15 per cent tariff on coal and liquefied natural gas products as well as a 10 per cent tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday.
The impact on U.S. exports may be limited. Though the U.S. is the biggest exporter of liquid natural gas globally, it does not export much to China. In 2023, the U.S. exported 173,247 million cubic feet of LNG to China, representing about 2.3% of total natural gas exports, according to the U.S. Energy Information Administration.
The Associated Press
Monday’s developments
Written and edited by CTV’s Luca Caruso-Moro, Rachel Aiello, Daniel Otis, Mary Nersessian, Phil Hahn, Michael Lee, Ryan White, Dorcas Marfo, Hunter Crowther, Charlie Buckley, and Lynn Chaya
8:20 p.m. EST: American liquor returning to B.C. shelves
Like other provinces, B.C. is putting a hold on retaliatory measures after U.S. tariffs were delayed. That means American booze will be back on shelves in the province’s liquor stores. B.C. Premier David Eby, however, said the province needs to remain prepared to act.
“The reality is that these unilateral actions by the United States, through the president, have changed our relationship for the foreseeable future,” Eby said Monday afternoon. “If there’s a tweet tomorrow that puts the tariffs back on we need to be prepared.”
8:00 p.m. EST: Quebec pauses retaliatory measures
Quebec Premier François Legault says retaliatory measures, such as removing U.S. alcohol from provincial liquor stores, will be suspended for 30 days. In a post on X, he added that while the pause on tariffs is good news, uncertainty remains.
“And uncertainty is very bad for the economy,” Legault said in a French statement. “No matter what Mr. Trump decides, we must rethink our economy to be less dependent on the United States.”
6:20 p.m. EST: Mark Carney says economy needs to be more resilient
Liberal leadership contender Mark Carney joined others in welcoming the pause on tariffs.
“In a more volatile world, Canada needs to be laser focused on growing our economy and making our country more resilient,” Carney said on X, over an hour after the announcement. “It’s time to build.”
6:15 p.m. EST: ‘We’ve just stayed at this,' public safety minister says
Public Safety Minister David McGuinty says he thinks the last-minute lobbying efforts he and his cabinet colleagues did in D.C. “broke through,” with Trump’s administration.
In an interview on CTV News Channel’s Power Play, McGuinty said Canada has been working for months to show Trump the federal government was taking his concerns seriously, while acknowledging some pieces “came to fruition later on than we thought.”
“We’ve just stayed at this. We’ve always believed, I certainly always believed, we could find our way forward, and it looks like we have,” he said.
Asked what underpins his degree of optimism after the roller coaster of the last 48 hours, McGuinty says he’s not sure the president “saw all the facts and figures” before signing the order for tariffs.
5:52 p.m. EST: Conservative and NDP leaders urge focus on economy
Opposition Leader Pierre Poilievre said Conservatives were relieved to hear about the month-long pause on tariffs.
“But this is not a time to sit back,” Poilievre said in a post on X. “We must urgently work to strengthen Canada’s economy and do everything we can to ensure these tariffs are never brought in.”
Poilievre also challenged the Liberals to “put country over Party” and recall parliament.
NDP leader Jagmeet Singh also welcomed the “good news” and said standing up to Trump was working.
“But his threats won’t stop,” Singh warned on X. “We need to make our economy less reliant on unreliable allies.”
5:40 p.m. EST: Tariff announcement ‘turning point’ for Canada: Unifor
Unifor President Lana Payne, who is also a member of Trudeau’s Canada-U.S. Relations Council, says Trump’s tariff announcement was “a turning point for our country.”
”The President declared economic war on Canadian workers and our country. There is no turning back," Payne said in a statement, adding that “no one should let their guard down” during the 30-day pause on potential tariffs.
“As a country, we must use the days ahead to continue to bring Canadians together, to plan for a potential trade war, and to use every single available lever to build a strong, resilient, and diverse economy.”
5:21 p.m. EST: ‘Don’t mess with Canada,’ says Bob Rae
Bob Rae, Canada’s Ambassador to the UN, says this most recent spat between Canada and the U.S. exposes the mechanics, and perhaps the vulnerability, of its free trade deal with U.S. and Mexico.
“We have to keep on negotiating in good faith,” he told CTV News. “How do we make sure that this economy works more effectively?”
He says the nature of the deal allows any of the three countries to “slow things down … and when they do that, it causes a huge problem.”
“That is the underlying reality of our situation in Canada, and we’re not without the means to respond, as we’ve demonstrated,” Rae said.
He says negotiations ought to remain civil and without “bluster,” nor “insults.”
“We are deserving of a civil conversation with our neighbour to the south,” Rae said. ”But one of us should do that with any sense that we don’t have the means to protect ourselves if we have to. Don’t mess with Canada."
5:20 P.M. EST – Liberal leadership contenders react to tariff delay
Liberal party leadership contenders were quick to react to news of the tariff delay.“Bravo, Team Canada!,” former deputy prime minister Chrystia Freeland wrote on X.
“Proof that we succeed when we are strong, smart, and united. Together, we will get through this.”
House leader Karina Gould welcomed the “good news for Canada and Canadians.”“
Let’s use these next 30 days to ensure the threat of tariffs is off the table for good,” Gould said on X.
5:15 p.m. EST: U.S. booze back on Ontario shelves – for now
In a Monday afternoon X post, Ontario Premier Doug Ford welcomed the 30-day tariff delay, which could allow for “cooler heads to prevail” during negotiations.
He also said the province would pause all retaliatory measures.
“President Trump will continue to use the threat of tariffs to get what he wants,” Ford cautioned. “Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China.”
5:05 p.m. EST: Trump responds on Truth Social
Trump confirmed the news that tariffs will be delayed for 30 days to determine if “a final Economic deal with Canada can be structured.”
The president, responding on Truth Social, repeated several aspects of the deal first revealed publicly by Trudeau, including the appointment of a Canadian fentanyl czar.
“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” he wrote.
4:44 p.m. EST: Trudeau’s deal with Trump
Canada will appoint a “Fentanyl Czar” as part of its deal to avert Trump’s tariffs on U.S. imports for at least 30 days. “We will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” reads a post on Trudeau’s X account.
“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
4:40 p.m. EST: Tariffs against Canada delayed for 30 days
Trump plans to hold off imposing his tariffs against Canada for one month, according to sources who spoke to CTV News.
The news comes after he and Trudeau held their second call of the day, which began at 3 p.m. Trump has yet to publicly address the agreement.
Earlier today, Mexico also worked out a deal with the president to delay tariffs against that country, offering concessions on border security.
4:25 p.m. EST: Call went ‘very well’: CNN
CNN’s Kaitlan Collins reports that Trump’s call with Trudeau went “very well” and that when the U.S. president was asked whether tariffs against Canada are going into effect, he replied: “Watch”
4:05 P.M. EST: Canadians anxiously await news of Trump-Trudeau second talk
As Trump hosts the Stanley Cup winning Florida Panthers at the White House, there is still no word of the outcome of a second reported call between the U.S. president and Prime Minister Justin Trudeau.
Reuters had reported that the call between Trump and Trudeau was underway just after 3 p.m. ET, before Trump hosted the Panthers team.
3:50 p.m. EST: Canadian auto sector hoping to see tariff relief
Flavio Volpe, head of Canada’s Automotive parts Manufacturers’ Association, says he hopes Trudeau and Trump can delay Tuesday’s potential tariffs. He says if they don’t, there will likely be “an industry shutdown” in the next week or so.
“You’ll see a big assessment of what actual expenses you have as you’re carrying empty plants,” Volpe said Tuesday at an auto parts manufacturer in Woodbridge, Ont.
Volpe adds that if there’s a shutdown, Trump will likely hear from auto sector employees in states like Alabama, Tennessee, Michigan and Ohio.
3:35 p.m. EST: Singh says Trump more interested in statehood than trade
NDP Leader Jagmeet Singh says Trump has made it clear the tariff threat isn’t about the border or trade deficits, but instead about making Canada a state.
In a comment posted to X, Singh says Canada “will not surrender our water, our health care, our values to Donald Trump.”
Earlier this afternoon, Trump said he wants to see Canada become the 51st state and that would “100 per cent” happen if people “play the game right.”
Trump and Trudeau are speaking on the phone this hour.
The Canadian Press
3:25 p.m. EST: Retaliatory tariffs will also apply to travellers, mail imports
The CBSA announced Sunday that in addition to commercial shipments, retaliatory tariffs of 25 per cent will also apply to certain goods imported to Canada by mail or courier, as well as goods imported by individual travellers above their personal exemptions. That means online purchases from the U.S. could be affected.
“The surtax will apply to goods imported for commercial and personal purposes, even when exported from a country other than the U.S. into Canada,” a notice from the CBSA explained.
According to Canada’s finance department, targeted American goods include orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.
3:09 p.m. EST: Second call underway
The White House Press Secretary told Fox News the second call between Trump and Trudeau is underway, Reuters is reporting.
The call comes after Trump described his first conversation with Trudeau on Monday as “good,” but said he still thinks Americans are “not treated well by Canada.”
2:55 p.m. EST: Trudeau, Trump’s second phone call imminent
Trudeau and Trump had their second call of the day scheduled for 3 p.m. today.
Since their first call this morning, it was made public that Mexico had reached a deal to delay the tariffs levied against them for one month. No such deal has been revealed for Canada.
Trump told reporters he’s not sure there’s anything Canada could come to the table with during the second call that could change his mind about tariffs.
2:51 p.m. EST: Trump says U.S. banks can’t do business in Canada. Is that true?
During his address to reporters in the Oval Office, Trump raised what appears to be a relatively new grievance justifying his tariffs against Canada.
“American banks are not allowed to do business in Canada. Can you believe that?” he asked, referring to his phone call with Trudeau. “That’s one of many things we talked about.”
The Canadian Bankers Association responded to those comments in a statement provided to CTV News.
“There are 16 U.S. based bank subsidiaries and branches with around C$113 billion in assets currently operating in Canada,” wrote the CBA. “These banks specialize in a range of financial services, including corporate and commercial lending, treasury services, credit card products, investment banking and mortgage financing.”
The association also wrote that American banks hold half of all foreign bank assets in Canada.
2:30 p.m. EST: Saskatchewan premier wants border agents to be part of military
As Trump takes aim at the U.S.-Canada border for being a source of illegal drugs and migration, Saskatchewan Premier Scott Moe is proposing that the Canada Border Services Agency (CBSA) become part of the Canadian military.
“It would provide two things immediately,” Moe said at a press conference on Monday. “One: provide the availability for troops along our border… thereby addressing concerns that President Trump has raised. Two, (it) would bring our CBSA funding in under the military. Investment would be part of ensuring that we are working towards our two per cent NATO commitment.”
Trump has long criticized Canada for failing to meet NATO’s defence spending target, which is set at two per cent of member nations' GDP.
2:22 p.m. EST: Poilievre’s border vision
Conservative leader Pierre Poilievre outlined his vision for Canadian border security, which includes 2,000 additional border agents, high-power scanners to detect drugs and guns, departure tracking and truck-mounted drone systems, among other things.
“There is no justification for President Trump’s unjust and unjustified tariffs. But the border must be fixed for the good of Canadians,” said Poilievre, as quoted in a press release from the party.
The party also wants to “call up” Canadian Forces troops to assist border staff.
2:08 p.m. EST: Trump says, again, he wants Canada to be a state
Trump, speaking to reporters in the Oval Office, said again that he would like to see Canada become the 51st state.
“If people wanted to play the game right, it would be 100 per cent certain that they would become a state,” he said.
“A lot of people don’t like to play the game because they don’t have a threshold of pain, and there would be some pain, but not a lot.”
Trudeau and Trump will speak on the phone for the second time today at 3 p.m. EST.
1:40 p.m. EST Trump says U.S. ‘not treated well’ by Canada
Speaking between calls with Prime Minister Justin Trudeau, U.S. President Donald Trump said their first talk was “good” but that he still thinks Americans are “not treated well by Canada.”
“I did ask him a couple of questions,” Trump told reporters in the Oval Office. “Canada is very tough. Canada is very, you know, we’re not treated well by Canada. And we have to be treated well.”
Trump went on to restate his view that the U.S. doesn’t need Canada to make cars, or give us lumber or provide agricultural products.“With that being said, we’re going to have another call at three o’clock. We had a call this morning. Pretty good call, I’d say,” Trump said.
1:22 p.m. EST: Trump could increase China tariffs in next 24 hours
U.S. President Donald Trump warned on Monday he might increase tariffs on China beyond the 10 per cent he imposed on Saturday, and that “we will speak to China” probably over the next 24 hours.
Reuters
1:00 p.m. EST: Independent grocers labelling Canadian products
For those who want to buy Canadian in the wake of U.S. tariffs, independent grocers like Vince’s Market in Ontario have begun labelling domestic products.
“Ultimately consumers are going to have the choice,” Vince’s Market president Giancarlo Trimarchi told CTV News Channel on Monday. “If we can give them a little bit more information as to which items do apply as a made in Canada or product of Canada, and they choose to buy more Canadian than yeah, we might have to make the decision to delist or bring in less of some of those American products.”
There is a slight distinction between items labelled “Product of Canada” and “Made in Canada.” According to the Competition Bureau of Canada, an item must have 98 per cent Canadian content to be considered a “Product of Canada” while the “Made in Canada” label is applied to products with at least 51 per cent Canadian content.
1:06 p.m. EST: Trump says he had good talk with Mexican leader
Trump told reporters in the Oval Office he had a good conversation with Mexican President Claudia Sheinbaum about tariffs. He also said he’s planning a “big negotiation” with Mexico, Reuters reported.
12:45 p.m. EST: Elon Musk responds to Ontario ripping up Starlink contract
Elon Musk, who owns Starlink through his tech company, SpaceX, and heads Trump’s newly minted Department of Government Efficiency (DOGE), responded to Ford’s announcement. “Oh well,” wrote the world’s richest man in a post to X, which he also owns.
12:10 a.m. EST: Canadians opting out of U.S. travel
Canada’s dollar is lower than usual, compared to the U.S. dollar. Some people are rebooking their travel in favour of destinations where Canadians have more buying power.
Those locations include Portugal, Antigua and the Caribbean, according to Flight Centre spokesperson Amra Durakovic.
She says her organization’s data suggests more Canadians are opting to travel within their own country. Anyone looking to do that should consider talking to a travel expert, she said, so that local landmarks like Lake Louise aren’t overrun with tourists.
11:48 A.M. EST: The massive potential economic fallout
Before the tariff talk and action blew up, the Canadian Chamber of Commerce had been warning about the far-reaching consequences that 25 per cent across-the-board tariffs would have on both economies.
It forecasted that Canada’s GDP would shrink by 2.6 per cent (roughly $78 billion). This would cost every Canadian approximately $1,900 annually.
The GDP in the U.S., meanwhile, would shrink by 1.6 per cent (roughly US$467 billion). This would cost every American approximately US$1,300 annually.
The Chamber of Commerce also highlighted the jobs at stake that are tied to exports between the two countries.
- 1.4 million American jobs are tied to Canadian exports.
- 2.3 million Canadian jobs are tied to U.S. exports.
- Canada is the number one export market for 34 American states, and each day $3.6 billion in goods and services cross the Canada-U.S. border, fueling a $1.3 trillion annual trade relationship.
11:34 a.m. EST: Tariffs will lead to addictions, mental health crisis: CMHA
The Canadian Mental Health Association Ontario is warning Trump’s tariffs will overtask the province’s health-care system.“Workers in industries affected by the tariffs, including automotive, construction, agriculture, forestry and mining, are especially likely to experience increased strain on their mental health,” the CMHA wrote.
“Research shows that economic instability can increase the risk of mental health and addictions issues, including anxiety, depression and substance use,” it added, appealing to Ontario to invest $33 million over four years to address service shortfalls.
11:06 a.m. EST: ‘Looking for signs of hope,’ Universities Canada CEO says
“I’m really proud of the way (Canada) is responding to this,” Universities Canada CEO Gabriel Miller said on CTV News Channel.
When asked about what might unfold in Trump and Trudeau’s second phone call Monday, Miller, who has been at the table with the Canada-U.S. relations council, said he’s “looking for signs of hope that President Trump will be reasoned with ... anything that indicates that the tariffs could be delayed (and) that there is more time to talk is encouraging.”
“The only question on anyone’s mind is how do we stand up for Canada?” he said. ”We have to be collaborative.”
10:50 a.m. EST: What’s in Mexico’s deal?
Mexico’s president outlined the deal she says her country reached with the U.S. to pause the tariffs.
Mexico will reinforce its northern border with 10,000 members of the national guard, whose primary task will be blocking drugs like fentanyl, she wrote. In turn, the U.S. will work to prevent high-powered firearms from entering Mexico and pause the tariffs for one month.
During that time, teams from both sides will “begin working” on security and trade, Sheinbaum wrote in Spanish.
Trump also wrote on his social platform of choice, Truth Social, that he will participate in negotiations between U.S. and Mexican officials, “as we attempt to achieve a ‘deal’ between our two Countries.”
10:32 a.m. EST: Mexico says tariffs paused for now
“They are pausing tariffs for one month from now,” Mexican President Claudia Sheinbaum wrote on X in Spanish.
She and her team had a “good conversation” with Trump, and that they reached a series of agreements, she wrote.
10:20 a.m. EST: Now not the time to ‘panic sell,’ says expert
Investment adviser Allan Small told BNN Bloomberg that because we don’t yet know how long the tariffs will last or precisely what effect they will have on Canadian markets, now is not the time to “panic sell.”
He said Canada’s counter-measures will hurt U.S. manufactures.
“At some point, this will bite,” he said, though Canada will probably feel the GDP impact sooner than the U.S. “There really is no winner.”
10:10 a.m. EST: Restaurants Canada CEO says tariffs on industry ‘concerning’
Kelly Higginson, CEO of Restaurants Canada, told CTV News Channel Monday that some products could be hit a few times with tariffs depending on where and how they are processed.
“We do have a lot of our suppliers who are scrambling, cancelled trucks coming into the country today filled with produce to feed Canadians and to support our industry, which is the fourth largest private sector employer in the country,” she said.
Higginson said food costs for their operators have jumped 20 per cent over the last four years, and with an incoming 25 per cent tariff on some products this has proven to be “very concerning.”
10:01 a.m. EST: Mexico can weather this storm, says minister
Mexico has enough resources to absorb financial shocks and navigate global challenges after the United States announced 25 per cent tariffs on its goods, Finance Minister Rogelio Ramirez de la O said on Monday.
The minister, speaking to investors earlier in the day, aimed to ease market jitters saying that Mexico was not only resilient but also remained a strategic and trustworthy destination for investors.
The peso lost about 1.57 per cent against the U.S. dollar and was trading at 21.0260.
Reuters
9:40 EST: North American markets open lower as Trump tariffs set to take effect Tuesday
North American markets opened sharply lower on Monday as the U.S. prepared to impose sweeping tariffs against major trading partners on Tuesday.
In Toronto, the S&P/TSX Composite Index was down 2.58 per cent while the S&P 500 Index was down 1.37 per cent In New York as of 9:30 a.m. EST.
9:23 a.m. EST: Trump ‘just spoke’ to Justin Trudeau
Trump says he spoke with Trudeau this morning.
“Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada. Just spoke to Justin Trudeau. Will be speaking to him again at 3:00 P.M.,” he wrote on Truth Social.
9:05 a.m. EST: Poilievre releases video outlining ‘Canada First’ plan
Conservative Leader Pierre Poilievre has released a video detailing his “Canada First” plan, which he said would make Canada less reliant on trade with the U.S.
The plan includes prioritizing a deal on standardizing trucking rules and creating a licensing standard so that doctors, nurses and engineers can work across the country, among other things.
8:55 a.m. EST: Canada ‘misunderstood’ Trump’s order?
The White House said on Monday it has noticed that Mexico is “serious” about Trump’s executive order on tariffs but Canada has “misunderstood” it.
“The good news is that in our conversations over the weekend, one of the things we’ve noticed is that Mexicans are very, very serious about doing what President Trump said,” White House National Economic Council Director Kevin Hasset said on CNBC.
“Canadians appear to have misunderstood the plain language of the executive order,” Hasset added.
When asked what Canada and Mexico must do to lift their tariffs, Trump told reporters on Sunday they have to balance out their trade, number one.
“They’ve got to stop people from pouring into our country ... they have to stop people pouring in, and we have to stop fentanyl. And that includes China,” Trump said.
Reuters
8:46 a.m. EST: Trudeau in contact with EU allies
The Prime Minister’s Office said Trudeau spoke with the President of the European Council Antonio Costa about Trump’s tariffs on Sunday. The council is holding its leaders' retreat today."
The prime minister discussed the imposition of U.S. tariffs and Canada’s response. The leaders underscored the importance of continued co-operation to promote security and economic prosperity for people on both sides of the Atlantic,” the readout states.
Here at home, Trudeau has scheduled an additional tariff-related call to his Monday itinerary.
He’s convening his Council on Canada-U.S. relations for a virtual meeting at an unspecified time, according to an update to his agenda.
8:39 a.m. EST: Chrystia Freeland on MSNBC
“You’re business people, right?” asked former finance minister and Liberal leadership hopeful Chrystia Freeland during an interview on MSNBC, adding that Trump has made the United States’ largest customer “angry.”
She’s one of several members of Canada’s political class making appeals on American television today.
“You’re slapping us in the face,” she said on Morning Joe.
8:32 a.m. EST: Food and beverage stakeholders call for unified response
Trump’s tariffs threaten the “deeply integrated agricultural and food supply chains that benefit both Canadian and American farmers, processors, and consumers alike,” Food and Beverage Canada said in a statement expressing “deep disappointment” on Monday.
“The changing trade relationship with the U.S. highlights the urgent need to strengthen Canada’s domestic food and beverage manufacturing industry,” said Kristina Farrell, CEO of Food and Beverage Canada.
“Our industry is a key economic driver and essential to our food security. We need policies that enhance competitiveness, reduce regulatory burdens, and support innovation so Canadian manufacturers can meet both domestic and international food demands. We stand ready to work with the federal government to achieve these goals.”
8:26 a.m. EST: Trudeau to host Council on Canada-U.S. Relations meeting
Prime Minister Justin Trudeau’s itinerary was released Monday morning, outlining that he will host a virtual meeting of the Council on Canada-U.S. Relations today, and that it will be closed to media.
8:20 a.m. EST: Ontario rips up $100M Starlink contract ahead of U.S. tariffs
Ontario Premier Doug Ford is announcing that the province will rip up its $100 million contract with Elon Musk’s Starlink ahead of U.S. President Donald Trump’s incoming 25 per cent tariffs.
Ford’s office made the announcement Monday and said the province is also banning other American companies from provincial contracts.
Phil Tsekouras, CTV News Toronto
8:15 a.m. EST: Canadian dollar falls to decades low
The Canadian dollar has fallen to its lowest level in more than two decades.
The loonie was trading for 68.13 cents US, its lowest level against the U.S. dollar since 2003, compared with 69.04 cents US on Friday.
The futures market also pointed to large drops for U.S. stock markets when they begin trading this morning.
The Mexican peso also fell by one per cent to 20.89 per USD.
7:24 a.m. EST: Firms lean into ‘buy Canadian’ sentiment
Canadian companies are embracing the “buy Canadian” sentiment sweeping the nation ahead of the tariffs being imposed on Tuesday.
Loblaw Companies Ltd. has vowed to secure more food grown and made in Canada, The Canadian Press reported.
Meanwhile, Shopify’s CEO has committed to introduce features aimed at encouraging shoppers to buy local.
6:21 a.m. EST: Bitcoin as Trump tariffs rattle markets
Cryptocurrency prices slid on Monday, with bitcoin at a three-week low, as the risk of a trade war spooked investors and caused a selloff across financial markets.
6:03 a.m. EST: Trump tariffs trigger stocks slump, U.S. dollar rises on trade war fears
European shares slid on Monday, joining a worldwide selloff sparked by fears that U.S. President Donald Trump’s tariffs on Canada, Mexico and China mark an opening salvo in a global trade war that would curb economic growth internationally.