Prime Minister Justin Trudeau holds a news conference on imposed U.S. tariffs in Ottawa on Tuesday, March 4, 2025. (Adrian Wyld /The Canadian Press via AP)

TORONTO (AP) — Prime Minister Justin Trudeau said Thursday he welcomed indications that the U.S. would delay substantial tariffs on Canadian products for a month, but said Canada’s plan to impose retaliatory tariffs would remain in place for now.

Trudeau said he expects Canada and the U.S. to be in a trade war for the foreseeable future after having what he called a colorful but constructive call with U.S. President Donald Trump this week.

Trudeau said the two sides are “actively engaged in ongoing conversations in trying to make sure these tariffs don’t overly harm” certain sectors and workers. He also reiterated that “we will not be backing down from our response tariffs until such a time as the unjustified American tariffs are Canadian goods are lifted.”

Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.

On Thursday, U.S. Commerce Secretary Howard Lutnick said in a television interview that Trump will likely suspend the 25% tariffs on Canada and Mexico for most products and services for a month, broadening an exemption that was granted on Wednesday only to autos.

In an interview on CNBC, Lutnick said the one-month delay in the import taxes “will likely cover” all goods and services under the United States-Mexico-Canada Agreement, or USMCA, the trade agreement Trump negotiated in his last term that replaced NAFTA.

Lutnick estimated that more than half of what the U.S. imports from those two countries would be eligible for the exemption.

For companies with products that comply with the trade agreement, “you will get a reprieve now,” he said.

Trudeau said Lutnick’s comments align with conversations Canadian officials have had with the Trump administration. “But I am going to wait for an official agreement to talk about Canadian response or look at the details of it but it is a promising sign.” Trudeau said. “But I will highlight that it means that the tariffs remain in place and therefore our response will remain in place.”

A day after the new tariffs took effect, Trump had said he would grant a one-month exemption for U.S. automakers. The announcement came after Trump spoke Wednesday with leaders of Ford, General Motors and Stellantis, the parent company of Chrysler and Jeep. His press secretary said Trump told the chief executives to move auto production to the U.S. to avoid tariffs.

Canada’s initial $30 billion Canadian (US$21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Ottawa plans a further $125 billion (US$87 billion) tariffs in three weeks on American products like electric vehicles, fruits and vegetables, diary, beef, pork, electronics, steel and trucks.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.

Despite Trump’s claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security.

Canada’s provinces, meanwhile, are lifting inter provincial trade barriers in an effort to lessen Canada’s dependence on the U.S.