President Donald Trump an hour after announcing a 30-day tariff reprieve for Mexico without mentioning Canada, finally granted the same deal for Canada — including potash but not all oil and energy products.
"It's just a small modification," Trump told reporters in the Oval Office Thursday afternoon, "because I didn't want to hurt the Americans, it would have hurt the American car companies."
Trump now says he will pause sweeping tariffs on certain products from both Mexico and Canada for 30 days, after imposing a 25% tariff on the two countries two days prior.
Trump Thursday afternoon said the nation with the highest tariffs imposed on the US is Canada, referring to Canada's Supply Management Agreement, which some refer to as the "dairy cartel," and lumber.
"Canada charges us 250% for our milk products and a tremendous tariff like lumber," said Trump.
"And we don't need their lumber. We have more lumber than they do."
The president said he plans to sign an executive order to allow forest management, including cutting down, planting and re-harvesting trees, which will serve as both lumber supply and forest fire prevention.
Trump after speaking with Mexican President Claudia Sheinbaum Thursday waived tariffs for America’s southern neighbor. Earlier Thursday morning the president indicated he has a positive relationship with Sheinbaum, while it has become obvious the same is not true for Canadian Prime Minister Justin Trudeau, who Trump has continuously called “Governor Trudeau” when suggesting Canada become the 51st state.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement,” Trump wrote social media.
“This agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum.”
Sheinbaum thanked the president with a post of her own.
“We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” wrote Sheinbaum on X.
About half of goods coming into the US from Mexico would fall under the exemption and around 38% of goods from Canada would qualify, a senior administration official told NBC.
That includes potash, which is used in fertilizers but some Canadian energy products won’t qualify and will be subjected to a 10% tariff. And all other goods, including computers from Mexico, will be subjected to the 25% tariff, the official said.
After about an hour passed, it was reported on a CNN broadcast that Trump was including Canada alongside Mexico in the 30-day tariff suspension on most goods entering the US.
The tariffs were imposed due to weak border security and rampant fentanyl trafficking in Canada and Mexico, which “pour” into the United States, said Trump in November when he was first elected.
Trump on Thursday said he and Sheinbaum are “working hard, together” on border security issues, particularly with fentanyl.
The president spoke with Trudeau on Wednesday, in a phone call the prime minister called “colourful” during a Thursday morning press conference.
Trump, however, after the call raised concerns that Trudeau doesn’t know when the next election will be — despite announcing his intent to resign on January 6.
Meanwhile, US Treasury Secretary Scott Bessent on Thursday called Trudeau a "numbskull" and said the Canadian prime minister's tough approach with the US will just lead to more tariffs, reported the Wall Street Journal.
"[Trump] has said many times that 'tariff' is his favorite word," said Bessent at an Economic Club of New York event.
"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."
"If you want to sit back and have a discussion with the Commerce Department, USTR—they have my phone number too—then I am happy to have a discussion with our foreign counterparts.""