Canada will remain in a trade war with the United States for the foreseeable future, Prime Minister Justin Trudeau said on Thursday, shortly before US Treasury Secretary Scott Bessent referred to him as a "numbskull."
Speaking in Ottawa, Trudeau stated that his government would continue discussions with senior Trump administration officials regarding the tariffs Washington plans to impose on Canadian imports. He reaffirmed his commitment to seeking the removal of these trade measures.
"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters.
In retaliation for the US tariffs, Canada imposed 25% duties on C$30 billion worth of American imports, which Trudeau said would remain in effect until Washington ended its trade action.
Bessent, expressing the administration’s frustration, remarked at an event in New York, "If you want to be a numbskull like Justin Trudeau and say 'Oh we're going to do this,' then tariffs are going to go up."
A Canadian government source suggested that Washington's frustration stemmed from Ottawa’s decision to retaliate.
Tensions between Trudeau and Trump have been ongoing, with the US president accusing Canada of failing to curb the flow of fentanyl and illegal migrants across the border. The two leaders spoke for 50 minutes on Wednesday, a conversation Trudeau described as "colorful" yet "substantive."
"We are ... trying to make sure that these tariffs don't overly harm, certainly in the short term, certain sectors," he said, indicating that discussions were ongoing but without any immediate resolution.
One key issue is Canada’s potential delay of a second round of 25% tariffs on an additional C$125 billion worth of US imports, which is set to take effect in less than three weeks.
Meanwhile, the White House announced that Trump would grant a one-month exemption from auto tariffs for Canada and Mexico, provided they adhere to existing free trade rules.
"Any carve outs that support any workers in Canada, even if it's just one industry or another, are going to be a good thing," said Trudeau.
As Trudeau prepares to step down following the ruling Liberal Party’s selection of a new leader on Sunday, he took a parting shot at Trump, contrasting trade negotiations with real estate deals.
"A win-lose between us would actually be worse for them than a win-win. That's true in international trade, in relations between nation states," he said.
"It perhaps is not true in real estate deals, (where) a win-lose is probably better for someone who is experienced in business deals than a win-win," he added.