Trudeau, Trump spoke this morning — will speak again this afternoon on eve of trade war

Prime Minister Justin Trudeau and U.S. President Donald Trump had an early morning discussion on Monday regarding the imminent trade war that could have negative economic repercussions for workers and businesses on both sides of the border. They are scheduled to have another conversation later in the day.
Although specifics of the call were not disclosed by the Prime Minister’s Office or the White House, a spokesperson for Trudeau confirmed that they discussed trade and border issues. It was also revealed that they will reconnect before tariffs are implemented on Tuesday. Trump also had a conversation with Mexican President Claudia Sheinbaum on Monday, during which she agreed to deploy 10,000 Mexican national guard troops to the U.S. border, resulting in a one-month pause on tariffs.
In a social media post following his conversation with Trudeau, Trump criticized Canada for not allowing U.S. banks to operate in the country. This shift in focus to banking fairness is a new development, as Trump previously emphasized the trade deficit and concerns about drugs and migrants crossing the border.
American banks have a significant presence in Canada, offering lending, commercial, and investment banking services. However, personal banking in Canada is predominantly handled by Canadian-based banks due to strict federal regulations aimed at safeguarding against bank failures. Canada’s major banks hold over 93% of the country’s domestic banking assets.
Trump’s comments on the Canadian banking system continued as he returned to D.C. from his Florida estate. He highlighted the alleged abuse by Canada towards the U.S. and mentioned the ongoing drug war, attributing hundreds of thousands of American deaths to drugs entering through the borders of Mexico and Canada. Despite his claims, data from U.S. Customs and Border Protection shows minimal amounts of fentanyl seized at the northern border compared to the southwestern border.
Despite these contentious issues, Trump expressed his intention to speak with Trudeau again later in the day. Trudeau is scheduled to meet with the Council on Canada-U.S. Relations to address the impending trade war and the tariffs set to take effect the following day.
The trade dispute was initiated by Trump’s announcement of imposing a 25% tariff on almost all Canadian goods, with a lower rate of 10% for energy products. Trump justified his actions by fulfilling a campaign promise to retaliate against countries he believes are taking advantage of the U.S. He specifically pointed to the Canada-U.S. trade deficit, which is largely influenced by American demand for affordable Canadian oil. Excluding oil exports, the U.S. actually holds a trade surplus with Canada based on Canadian government data.
The ongoing discussions and negotiations between the leaders of Canada, the U.S., and Mexico highlight the complexity and potential consequences of the looming trade war. Stay tuned for further updates on this evolving situation.