The Decibel A carve out in the trade war – is this the first of many?
Mar 6, 2025
Nathan VanderKlippe, an international correspondent for The Globe, dives into the recent trade tensions and negotiations between the U.S. and Canada. He sheds light on a pivotal phone call between President Trump and Prime Minister Trudeau and discusses the role of Howard Lutnick in the trade talks. VanderKlippe also unpacks the temporary reprieve from automotive tariffs and its significance for both economies. The conversation further explores the complexities surrounding trade, fentanyl issues, and the push for economic stability amidst uncertainty.
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Automakers and Tariffs
- Trump told Congress he spoke with major automakers, and they were excited about building plants in the U.S.
- It turns out they were seeking tariff exemptions because auto parts frequently cross borders between the U.S., Canada, and Mexico.
Tariff Exemption for Automakers
- Automakers sought a tariff exemption because parts move between the three countries multiple times, making a 25% tariff significant.
- The U.S. agreed to the exemption, and this was likely a result of the call between Trudeau and Trump.
Trump and Trudeau's Call
- Trump and Trudeau had a 50-minute call discussing the tariffs and seeking a resolution.
- Trump later posted on Truth Social, criticizing Trudeau and misinterpreting his response about the Canadian election.