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Live updates as Canada fights against 25% U.S. tariffs and braces for economic pain

Slew of retaliatory measures announced Tuesday, while PM calls Trump’s move a ‘dumb thing to do’

Canadian leaders reacted Tuesday after U.S. President Donald Trump’s tariffs went into place, with Prime Minister Justin Trudeau promising to work ‘relentlessly’ to protect jobs and the economy. The latest

Prime Minister Justin Trudeau says Trump has launched a trade war with Canada.
Canada levies counter-tariffs on $30 billion worth of U.S. goods, with possibly more to be added.
Conservative Leader Pierre Poilievre calls for tax cuts amid economic crisis.
NDP Leader Jagmeet Singh wants EI program bolstered.
Provinces pull American booze from shelves, but don’t stop energy exports.

Updates March 4

8 minutes ago
‘The bullying needs to stop,’ says Minnesota Congresswoman
Sylvia Thomson

Speaking to CBC News inside the Capitol building, one U.S. Congresswoman said her constituents were outraged when it became clear a few weeks ago that Trump would impose tariffs on Canadian goods.

“The only thing I want to argue with Canadians about is maybe a hockey score and maybe how many fish we can bring back,” said Betty McCollum, a Democratic representative from Minnesota.

“We are with Canada … The bullying needs to stop. We need our friends and colleagues with us.”

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18 minutes ago Is middle ground possible? One Trump official says so John Rieti

Trump threatens ‘immediate’ reciprocal tariffs on Canada 44 minutes ago Duration 1:09

U.S. President Donald Trump fired back at Prime Minister Justin Trudeau on his own social media platform, Truth Social, saying he would match any Canadian retaliatory tariffs “immediately.”

Howard Lutnick, the U.S. Secretary of Commerce, told Fox News that he’s been on calls with Canada and Mexico all day.

“I think [Trump’s] going to work something out with them,” Lutnick said, before clarifying that a pause isn’t an option.

“I think he’s going to figure out, you do more and I’ll meet you in the middle some way,” he said.

Lutnick suggested that could happen tomorrow. Share 29 minutes ago Markets finish lower after a volatile day Jenna Benchetrit

A wild day. The markets had a steep drop off this morning, with the S&P 500 erasing all gains made since election day. Then, a rebound that started around 11:30 a.m. ET saw the major indices recover most of their losses (and then some) by mid-afternoon.

But they ultimately finished the day lower, showing that Wall Street is still concerned about these measures — and as my colleague Alex Panetta wrote this morning, U.S. market reaction is the one that matters.

Trump will address Congress tonight, which could mean more volatility tomorrow. “A lot of where we are headed next really does depend on what is in this speech,” Steve Sosnick, market strategist at Interactive Brokers, told Reuters.

By market close at 4 p.m. ET, the Dow Jones Industrial Average fell 670 points, or 1.6 per cent; the S&P 500 fell 1.2 per cent; and the Nasdaq fell 0.4 per cent after a rebound mostly driven by chipmaker Nvidia. Share 31 minutes ago Saskatchewan mulling tariff response John Rieti

Saskatchewan Premier Scott Moe says U.S. President Donald Trump is “wrong” to impose tariffs on Canadian goods.

However, it seems Moe is still weighing his options when it comes to countermeasures.

“Canada’s response needs to be economically sound and reasoned. It should not result in the same kind of self-inflicted harm that Trump is imposing on his citizens,” he said in a statement.

On Tuesday, Ontario Premier Doug Ford called for Moe to no longer sell potash, uranium and oil to the United States, saying Saskatchewan should find other markets.

Get more on this story here. Share 33 minutes ago Where does Ottawa go from here? Catharine Tunney What’s next for Ottawa? A lot of phone calls with Washington. What’s next for Ottawa? A lot of phone calls with Washington. (CBC)

Hold on to your hats. It’s been a roller coaster of a few hours here in Ottawa as the federal government responds to U.S. President Donald Trump’s tariffs. And the ride is just beginning.

Here’s what to look out for in the coming hours and days from the federal government:

Prime Minister Justin Trudeau says he hopes to speak to Trump soon. The two leaders are no longer cordial in public. (Today Trudeau called Trump’s actions "very dumb.”) So we’ll be waiting to see if the temperature is lowered — or further escalated — after they get on a call together.
The government has vowed to expand EI for workers and offer direct support to businesses made casualties in this dispute. We’re waiting for more details on those fronts.
Finance Minister Dominic LeBlanc repeated in a statement today that the government will consider additional measures, including non-tariff options, should the tariffs linger. Another area to watch.
Who will be the next Liberal leader and how will they respond? The Liberal leadership vote is now five days away with four candidates in the running. The winner won’t become prime minister until after they are sworn in, but the focus will shift to how they plan to react.
And perhaps the biggest uncertainty hanging over Canada’s response to the tariffs: when will a federal election be called? Today, NDP Leader Jagmeet Singh called for the House to be recalled to pass legislation to support workers. But the chatter in the capital (with the caveat that Ottawans love to speculate) is that the next Liberal leader might want to trigger an election before the house returns on March 24 in an attempt to secure a mandate. Polls suggest the lead Conservative Leader Pierre Poilievre enjoyed for more than a year is in peril.
While Canada slapped tariffs on an initial tranche of $30 billion worth of American goods today, the government is also promising more levies on $125 billion of American products in three weeks' time if the U.S. maintains the tariffs.

Share 2 hours ago Expect the booing to continue, Trudeau tells Americans Catharine Tunney

U.S. anthem booed by Montreal hockey fans ahead of Team USA’s opening 4 Nations Face-Off game 18 days ago Duration 0:35

Despite announcements asking spectators to respect national anthems, boos were heard echoing through the Bell Centre on Thursday during the Star-Spangled Banner.

Lost in the fray this morning was an element of this tariff fight that Canadian sports fans are familiar with.

Prime Minister Justin Trudeau said yeah, Canadians will keep booing the U.S. anthem at hockey and basketball games. (Connor McDavid’s Edmonton Oilers are the only NHL team playing on Canadian ice tonight, by the way.)

Here was Trudeau’s explanation.

“We are not booing you, your teams, we are not booing your players,” said Trudeau, responding to questions from reporters.

“We are booing a policy that is designed to hurt us, and we are insulted.”

We often see careful, diplomatic words when a Canadian prime minister speaks about the U.S.

Today was starkly different.

Trudeau was blunt and pointed. Perhaps a sign of his limited days in office — but also a mark of the era we find ourselves in. Share 2 hours ago Freeland calls to ban Musk’s X, Starlink from government programs Catharine Tunney Liberal leadership hopeful Chrystia Freeland wants to ban Elon Musk’s companies from bidding on government contracts. Liberal leadership hopeful Chrystia Freeland wants to ban Elon Musk’s companies from bidding on government contracts. (Evan Mitsui/CBC)

One of the candidates hoping to replace Prime Minister Justin Trudeau in a matter of days is vowing to go after a key member of Trump’s inner circle: Elon Musk.

In a statement Tuesday, Liberal leadership hopeful Chrystia Freeland called the economically devastating tariffs “an act of self-mutilation by the United States.”

If made prime minister, Freeland said she’d ban Tesla, X (formerly Twitter), Starlink and SpaceX from “receiving any current or future federal procurement, subsidies, or incentives.” The move is on top of her plan for a 100 per cent tariff on Teslas, produced by the car company owned by Musk.

"We will encourage all provinces, territories and municipalities to join us in this measure,” she said.

The former finance minister faced off against Trump during his first term, when the countries’ free trade pact was under attack.

She also promised to use all proceeds from retaliatory tariffs to support Canadian workers and keep Canadian businesses operating. Share 2 hours ago Bloc leader comes out against threatening electricity supply Catharine Tunney

Bloc leader says Canada must ‘be careful’ when responding to U.S. tariffs 38 minutes ago Duration 0:58

Bloc Québécois Leader Yves-François Blanchet said he understands wanting to ‘show muscles and say big words’ when in a crisis. However, ‘we’ve got to keep in mind that after the crisis, they will still have to be business partners,’ Blanchet said.

Bloc Québécois Yves-François Blanchet is speaking out against calls to mess with the electricity Canada supplies to the U.S.

Earlier today, Ontario Premier Doug Ford said if the tariffs continue, he will slap a 25 per cent surcharge on electricity flowing into the U.S. and potentially cut the flow off entirely.

His province sends electricity to about 1.5 million homes in Minnesota, Michigan and New York.

Ford said while he has no jurisdiction in other provinces, he will be encouraging Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith to follow suit.

The Bloc leader called it a “strange idea.”

“I am far from being certain that threatening the United States not to supply them with electricity is such a good idea,” Blanchet said Tuesday.

“We’ve got to keep in mind that after the crisis, they will still have to be business partners. We want them to keep buying our electricity.”

Blanchet said he understands the need to “show muscles and say big words” during a crisis.

“But sometimes, it’s not the best thing to do," he said. Share 2 hours ago The rate cuts are coming Jenna Benchetrit How will Tiff Macklem, the Governor of the Bank of Canada, respond to Trump’s tariffs? How will Tiff Macklem, the Governor of the Bank of Canada, respond to Trump’s tariffs? (Ben Nelms/CBC)

The Bank of Canada’s next interest rate decision is just over a week away. How might tariffs change the course of monetary policy?

Now that they’re in effect, some experts think the central bank will cut rates more frequently in the coming months. The bank’s overnight rate currently stands at three per cent.

“We expect that the longer tariffs remain in play, the greater the likelihood that rates fall faster and by a larger magnitude,” wrote RBC economists Frances Donald and Cynthia Leach.

A TD Securities analysis went a step further, speculating the BOC will cut by 25 basis points at each of its four meetings until July, bringing the rate down to two per cent.

Bank of Canada governor Tiff Macklem, not one for hyperbole, said last month that a Canada-U.S. trade war would lead to more than a shock — it could mean permanent changes to Canada’s economic output.

He warned at the bank’s last meeting in January that there was little the central bank could do to stave off the impact of tariffs on Canada’s economy.

“Canada’s going to produce less. It’s going to earn less. Monetary policy can’t change that,” he said. Share 2 hours ago Poll shows more muted response in U.S. as trade war looms Alexander Panetta

What’s the mood south of the border? A little less worried, and a lot less angry at the neighbour, according to a new Canada-U.S. poll.

A YouGov survey (find the methodology here) that polled respondents in both the U.S. and Canada found Americans a bit concerned about tariffs. But not nearly as much as Canada.

It also found that Americans still overwhelmingly consider Canada a friend, a sentiment not reciprocated among Canadians burning hot over tariffs.

The survey found a majority of Americans fear tariffs will affect the affordability of goods — 61 per cent, well below the 78 per cent of Canadians who said the same.

But a minority of Americans — 44 per cent — said they expect tariffs will hurt the American economy, well below the percentage of Canadians who said that.

Unsurprisingly, Trump’s tariffs, in general, are far more popular with Republicans than with other Americans: 51 per cent of Republicans said tariffs on foreign goods should grow, many times higher than the share of other Americans who feel this.

One bright spot? The overwhelming majority of Americans, of all political stripes, continue to describe Canada as an ally or a friend (82 per cent). Only six per cent described Canada as unfriendly, or an enemy. The feeling is not mutual lately.

The same poll found a staggering 50 per cent of Canadian respondents described the United States as unfriendly or an enemy, and just 33 per cent as an ally or friend.

What about making Canada a U.S. state? The Canadian government has opined that this may be why Trump is imposing tariffs.

A mere 18 per cent of Americans, however, said they believe Trump is doing this to force Canada to join the U.S., and Republicans are even less likely to agree. Americans were far more likely to view it as a negotiating tactic.