Day two of trade dispute sees a 50-minute call between Prime Minister and President Donald Trump
The second day of the US-Canada trade war has already produced a series of revisions and bellicose statements out of both Washington and Ottawa.
On Wednesday afternoon the White House confirmed that autos would be given a one-month exemption from any tariffs imposed on both Canada and Mexico. The delay appears to have come at the request of the US ‘big three’ automakers: Ford, GM, and Stellantis. Auto manufacturing is one of the most interconnected industries in North America, with many vehicles crossing borders multiple times in the manufacturing process.
Earlier in the day President Trump held a roughly 50-minute phone call with Prime Minister Trudeau. Trump was joined by VP Vance and Commerce Secretary Howard Lutnick. Following the call, Trump offered a series of summaries posted on his Truth Social platform.
“The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power,” the President wrote. “Good luck Justin!”
In a subsequent post Trump once again raised the issue of fentanyl and illegal immigrants. He alleged that “Weak Border Policies” allowed both to “pour into the United States.”
Canadian officials have repeatedly noted that less than one per cent of all fentanyl seized by US officials comes from Canada.
Markets recover slightly
Major stock indices ticked up slightly on Wednesday, following their falls on Monday and Tuesday in the wake of tariff news. The S&P/TSX Composite was up by under one per cent on Wednesday afternoon. The Dow Jones and the S&P 500 were each up around 1.2 per cent while the NASDAQ was up around 1.3 per cent.
US businesses have also expressed growing concerns about these tariffs, according to the Federal Reserve’s “beige book” summary of economic conditions released Wednesday. The summary makes mention of tariffs 45 times.
“Contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively,” the report reads.
