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Truce on car tariffs between the US, Canada and Mexico: Trump extends exemption

The White House announces a one-month reprieve on tariffs on cars imported from Canada and Mexico, but tensions remain high. Trudeau under pressure as Liberal party regains ground in polls

US President Donald Trump has decided to grant a temporary reprieve on duties imposed on cars imported from Mexico and Canada, announcing a one-month exemption for all cars entering the country under the Usmca trade deal. White House spokeswoman Karoline Leavitt (pictured) announced the decision during a briefing, noting that the reciprocal tariffs will still go into effect on 2 April. ‘The president wants to give companies associated with the Usmca time to adjust and not suffer economic disadvantages,’ Leavitt explained, reading a statement from Trump.

Despite the temporary suspension, tensions with Canada remain high. On the same day, Trump received a phone call from Canadian Prime Minister Justin Trudeau, who tried to discuss the ongoing trade crisis. But Trump’s response was far from conciliatory: ‘Justin asked me what we can do about the tariffs, but I reminded him that many people have died from fentanyl coming over the border from Canada and Mexico, and I don’t think this problem has really been solved,’ Trump wrote on his Truth Social.

The issue of tariffs has put Trudeau under pressure. After the US imposed 25% tariffs on Canadian imports, Trudeau responded with similar duties on American products. Trump also did not fail to attack him publicly, sarcastically calling him ‘governor’ in reference to his provocative campaign to make Canada the 51st state of the US. In his post on Truth Social, Trump accused Trudeau of being weak on border policies, allowing fentanyl and migrants to cross into the US. However, official figures from 2024 report that only 19.5 kilos of the opiate were intercepted at the northern border, a small amount compared to the US president’s claims.

Duty-related political tensions are having an impact on the Canadian political landscape. Trudeau, unpopular and under attack within his party, resigned as leader of the Liberals last January and has announced that he will also leave the post of premier as soon as a new leader is chosen, a process that is expected to be concluded within a few days. Among the favourites for the succession is former central bank governor Mark Carney, who could call early elections as early as in the coming weeks.

In the meantime, the Liberal Party has started to climb in the polls, regaining ground thanks to a patriotic reaction against Trump’s attacks. For the first time in four years, the Liberals took the lead, with a two-point margin over the conservatives led by Pierre Poilievre, a politician close to Trump and supported by the Maga movement and Elon Musk.

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