Prime Minister Justin Trudeau praised Canada’s “mutually beneficial relationship” with the United States and congratulated President Donald Trump as he officially took office, but Trudeau emphasized that his government will defend the interests of Canadians.
“Canada and the United States have the most successful economic partnership in the world,” Trudeau wrote in a statement after Trump’s inauguration on Monday.
“We are stronger when we work together, and I look forward to working with President Trump, his administration, members of the United States Congress, and officials at the state and local levels to bring prosperity to our people, while protecting and defending the interests of Canadians.”
Trudeau’s statement comes amid reports that Trump will not impose promised tariffs on Canada, Mexico or China on his first day in office, as previously announced.
A U.S. official confirmed to Reuters that Trump will wait for now and instead direct agencies in a memo to “investigate and remedy persistent trade deficits and address the unfair trade and monetary policies of other nations.”
The memo will single out China, Canada and Mexico for scrutiny but will not announce new tariffs, the official said.
It offers the Liberal government a moment of respite, although it is unclear how long it will last.
“Maybe he’s made a decision to sort of suspend the threat of tariffs. We’ll wait and see,” Finance Minister Dominic LeBlanc told CBC News on Monday.
“Our job is to make sure we are prepared for every scenario.”
The federal cabinet is expected to discuss those scenarios as it meets for a retreat at the Château Montebello resort on Monday and Tuesday, in western Quebec, about an hour east of Ottawa.
Trudeau did not answer reporters’ questions on the way to the meeting, but a Radio-Canada journalist was able to ask “no tariffs for now?” while passing.
“For now,” the prime minister responded in French.
Cabinet meets as Liberal leadership race intensifies
The federal government has made clear that it is prepared to impose retaliatory tariffs on the United States if Trump ultimately moves forward with any trade action. Officials have already drawn up a plan that will impose immediate tariffs on $37 billion worth of American goods if Trump acts against Canada.
When Trump first threatened to impose steep tariffs on Canada and Mexico in November, he cited concerns about border security, migrants and illegal drugs, especially fentanyl. He also talked about the United States’ trade deficit with Canada.
Last month, the federal government pledged to spend $1.3 billion to strengthen surveillance of the Canada-U.S. border, including purchasing dozens of drones and leasing helicopters.
The cabinet is also meeting as the party conducts a leadership campaign to replace Trudeau.
So far, six people have thrown their hats in the ring: former government House Leader Karina Gould, former Finance Minister Chrystia Freeland, former Bank of Canada Governor Mark Carney, Nova Scotia MP Jaime Battiste, Ottawa MP Chandra Arya and former Montreal MP and businessman Frank Baylis.
