Your World Tonight - Canada-U.S. trade war, costs going up, Zelenskyy says it’s time for peace, and more

Episode Date: March 4, 2025

It’s a decisive day in the relationship between the U.S. and Canada. U.S. President Donald Trump has made good on his threat to impose 25% tariffs on all goods coming from Canada and Mexico. And 20% more on those from China.We have all the details: Ottawa’s retaliatory tariffs, the reaction from the provinces, the fears of the business community, and how the U.S. decision is going to affect your wallet.And – the voices of Canadians, angry about what it all means.Also – the view from Washington, and how Trump is threatening to add reciprocal tariffs to respond to Canada’s retaliatory ones.Plus, we have a story on Ukrainian President Volodymir Zelensky saying no one wants endless war. And how Europe is rallying to help Ukraine.

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Betrayed, angry, disgusted. We're all going to pay more. People are going through a tough time. So this is like the last thing that we need. If it's Canadian, I'll pay for it. Keep it in Canada. Canadians were the best allies. I mean, there's a history there. So now it's all down the drain.

It's terrible. And this is going to hurt everybody. It really is. Canadians talking, coping, planning and worrying about Donald Trump's tariffs and how bad this could get. A cross-border confrontation that is set to rattle the North American economy and already fracturing U.S.-Canada relations like never before. Welcome to Your World Tonight.

It's Tuesday, March 4th coming up on 6 p.m. Eastern. I'm Susan Bonner. The United States launched a trade war against Canada. Their closest partner and ally, their closest friend. At the same time, they're talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense. In an extraordinary speech that saw a Canadian Prime Minister accuse the U.S. President of trying to crush our economy

in order to take over the country, Justin Trudeau fired back and wasted no time launching Canadian countermeasures, retaliatory tariffs worth billions, with provinces vowing even more. We need to be ready to escalate using every tool in our toolkit. We will not hesitate to shut off their power as well. Day one of a Canada-U.S. trade war.

We have comprehensive coverage for you tonight with reporters in Ottawa, Washington and across Canada. From the impact on jobs to key industries to your grocery bill. And we are tracking what could be a major development in the war in Ukraine. But we begin on Parliament Hill with the CBC's Tom Perry. So today, the United States launched a trade war against Canada. Resigned but defiant. Justin Trudeau says Canada never wanted a fight with a country that's supposed to be its closest ally. But in an address

broadcast live on US news channels the Prime Minister delivered a message to the American people and in particular their president. Now it's not in my habit to agree with the Wall Street Journal. But Donald, they point out that even though you're a very smart guy, this is a very dumb thing to do. Dumb, Trudeau says, and damaging to the economies of both Canada and the United States. Trudeau says Canada will fight back with reciprocal tariffs on $155 billion worth of US goods, $ 30 billion now, the rest in

three weeks. As for the spark that set off this trade war, Donald Trump's claim Canada is allowing fentanyl into the US, Trudeau believes the real reason may be more sinister. Fentanyl is completely bogus, completely unjustified, completely false. So we actually have to fold back on the one thing he has said repeatedly, that what he wants is to see a total collapse of the Canadian economy, because that'll make it easier to annex us. Trudeau says that will never happen,

but suggested what makes Trump's move all the more concerning is that it comes as the president is rapidly moving his country away from traditional allies and closer to Russia. Opposition leader Pierre Poliev today added his voice to those expressing shock that Canada, of all countries, would be attacked by its neighbour. At 12.01 a.m. President Trump stabbed America's best friend in the back. Poliev agrees Trump's claims about fentanyl are no grounds for tariffs. Though he still attacked the Liberals for what he calls Canada's weak borders and soft drug laws. As for Canadian tariffs on U.S. goods, Poliev says any money raised from them should go primarily to one area. Almost every penny of the tariffs collective should go to tax cuts with a small sum set aside for targeted relief to workers hardest hit by the trade war.

But to NDP leader Jagmeet Singh, that makes no sense. He's talking about tax cuts when people are losing their jobs. If you cut someone's taxes, they have no income. What's the point? Singh says parliament should be recalled so it can pass an emergency support package for businesses and workers that will end up as collateral damage. Trump is already threatening to retaliate against Canadian tariffs and escalate his trade war as America turns against its allies at a heavy cost.

Tom Perry, CBC News, Ottawa. I'm Rafi Bidgicanian in Ottawa, where Prime Minister Justin Trudeau has wrapped a virtual meeting with provincial and territorial premiers as they continue to hammer out a pan-Canadian response to U.S. tariffs. Every year the LCBO sells nearly one billion dollars worth of U.S. wine, beer, cider, seltzers and spirits. Ontario Premier Doug Ford with a familiar salvo to anyone who's been following this long-threatened trade war.

As of today, every single one of these products is off the shelves. It's not just alcohol. Ford is also stopping his government and public agencies from doing business with U.S. companies, tearing up a $100 million contract with Starlink, the internet provider run by US President Donald Trump's ally, billionaire Elon Musk. This is principle to cancel Starlink's to President Trump's right-hand man.

Ford is also looking at Ontario's hydroelectricity with a 25% surcharge to American clients if tariffs persist, again saying he could cut off power to them completely. We must not rule out anything for the future. It includes what we can do or with do with electricity. Previously, Quebec Premier François Lagault was not willing to go there. We'll continue discussing and looking at all kinds of scenarios. Also, previously at odds with Ottawa, Alberta Premier Danielle Smith says in a social media post today she fully supports the response by Prime Minister Trudeau and she wants to tear

down provincial trade barriers and fast-track the construction of dozens of natural resources projects. Meanwhile, in Manitoba, its government draped a giant Canadian flag over the legislature in Winnipeg. And in British Columbia, Canada will never be the 51st state. Premier David Eby had this to say. Whether it's Crown corporations, health authorities, court government, we'll be buying Canadian first. BC is also stopping sales of American liquor, specifically only bottles from Republican states.

It expects to be hit hard, especially in the softwood lumber sector. Most of Canada's is produced in BC and exported to the US. EB's provincial budget released today includes $4 billion to deal with unpredictable costs including tariff responses. In similar moves, Quebec announced a $50 million fund to help small businesses. Nova Scotia Premier Tim Houston has earmarked $200 million. We'll look for ways to support businesses. He says resolving this dispute may come down to Trump's advisors. If he hasn't felt the heat of the stove with our actions,

maybe they can remind him it's hot. After more than three months of tariff talk, leaders in this country will now look to the Americans to lower the temperature. Rafi Boudjikani on CBC News, Ottawa. I'm Peter Armstrong in Washington, following US reaction to the biggest trade war between our countries in a hundred years.

Financial markets closed out a rough day until this week investors had largely ignored the threat of terrorists. They simply didn't believe US President Donald Trump would follow through on his threat. Colin Cezinski, chief market strategist at SIA Wealthalth Management says Wall Street had to suddenly price in all that risk. The market seemed to recognize that in a trade war everybody loses. Tariffs broke sand in the gears of the global economy. By day's end the S&P 500 had lost all the gains it made since Trump was elected, president wiping out trillions of dollars in value. Politicians like New York Governor Kathy Hockel have been trying to drive home

what these tariffs will mean for her constituents, their businesses and their pocketbooks. This is a real, real hit on our families at a time where we were promised affordability. Day one prices are going to go down. Tarace of course will drive up prices for Americans. Brian Cornell, CEO of the retail giant Target says some goods like fruits and vegetables from Mexico will see price increases immediately. We'll try to protect pricing, but the consumer will likely see price increases over the next couple of days. But some Republicans on Capitol Hill say they're prepared for that.

Am I worried that it could impact us? Of course. Oklahoma Senator Republican Mark Wayne Mullin says he supports the president's initiative. As American people ready to get the country back on track and do what it had do what it needs to do, what it takes to get it to make that happen. Absolutely. The question remains though, what precisely do they think needs to happen? Today's tariffs were supposed to be about fentanyl, but yesterday Trump said it was really about auto manufacturing, and today was posting on social media about American banks getting more access to the Canadian market. Look, the president's going to have conversations with the Canadians.

Vice President JD Vance says the administration still needs to see more on the fentanyl front, even though his boss has said there's nothing Canada could do to stave off the tariffs. We think that the Canadians have not been serious about stopping the drug trade. Now Canada is not alone in trying to figure out Trump's plan. China responded with retaliatory tariffs, but Mexico is holding fast, waiting until the weekend, Susan, to announce its plan. Peter, Donald Trump is addressing a joint session of Congress this evening. It's his first major speech to lawmakers since returning to the White House. Do you think he will provide some clarity on the tariffs? I mean, maybe, but Susan, even if he does, what's to prevent him from saying something

entirely different tomorrow? Now, listen, for what it's worth, finance minister Dominic LeBlanc spoke with commerce secretary Howard Lutnick today. Howard Lutnick then went on Fox News and dropped a bit of a bombshell saying he thinks Trump will meet Mexico and Canada, quote, in the middle on tariffs. I'm not entirely sure what that means, but Lutnick

says he thinks they're going to announce something on that tomorrow. So lots of news still swirling around. Okay. Thank you, Peter. You bet. Coming up on the podcast, reaction from businesses, the oil and gas industry and consumers, plus a development in the tensions between the U.S. and Ukraine. We are going to stay with the U.S.-Canada trade war, and while political leaders are planning their next steps, Canadian businesses are also looking ahead at some tough choices

and a future that could include higher costs, disrupted supply chains and layoffs. Jamie Strachan has that part of the story. There's hurt, there's anger, there's disappointment. On the floor of Laval International in Windsor, Jonathan as a party is surrounded by whirring machines. For decades the company has manufactured molds used by U.S. auto companies to make parts. Today, everything changed. It's like a funeral, right? Somebody who's been so close to us for so many years is all of a sudden dead to us. There's like a barrier between us.

For months the threat of U.S. tariffs loomed and hung like a foreboding cloud. Like nearly every facet of the multi-billion dollar North American auto sector, this company is inextricably intertwined with US companies all contributing to the finished product. Our product originates in the United States, comes to Canada, becomes something else, goes to the United States, becomes something else, comes back to Canada, becomes something else, to ultimately land in the United States that employs Americans, that makes parts, that are put into vehicles that are sold on the Canadian and the U.S.

side. Now all of that has been blown up and as a party is contemplating contingencies he never thought would be needed. The next steps that we take to mitigate or eliminate are going to determine how long we can survive. Ontario Premier Doug Ford predicts plans on both sides of the border will shut down within 10 days. Flavio Volpe, the president of the Auto Parts Manufacturers Association agrees. Those plants will shut down and I really feel for the hundreds of thousands of people that work in Ontario,

125,000 people directly related to manufacturing, but in the US just 900,000 people that are gonna be sitting at home. The president of the Aluminum Association of Canada, Jean Samard, says more than two-thirds of the aluminum used in the U.S. comes from Canada and it's U.S. consumers who will feel the pinch. Pickup trucks, Ford 150, will cost $3,000 more and you'll see the same thing in cars and in electrical appliances and other consumer products. Troy Burch of the Great Lakes Brewing Company, a mid-sized brewery in Toronto, says tariffs will increase the cost of cans made in the U.S. and hops that are mostly imported from Washington State.

Bars and restaurants, people that distribute beer, there's going to be a big trickle down effect of the increase in input and how that's going to look at the as the pint that's in your hand at your local bar. The implications of something once thought unthinkable already impacting businesses industry and consumers unraveling a trade relationship built over centuries. Jamie Strash in cb News, Toronto. There's also a long history of cross-border cooperation in Alberta's oil and gas industry, a sector that's being hit with 10 percent tariffs that will cut into profits and have consequences across that province. From Calgary,

here's Erin Collins. It's just uh yeah it's a hard thing to even swallow. At this diner in the heart of oil country, pipeline worker Corey Sturm chews on the realization that tariffs have finally arrived. Frustrating, because we just don't know. We absolutely don't know. So like I said, I'm just worried about everybody, me, my workers, you name it. Those concerns shared by those at the wheel of Alberta's biggest industry too. We're in a very extreme, uncertain environment right now.

Mark Scholes is with the Canadian Association of Energy Contractors. The group represents companies that operate the oil patches, drilling and service rigs. The first sector that feels the pain from a pullback in capital are the frontline businesses that help produce energy. Alberta's premier also troubled by U.S. tariffs on energy, taking to U.S. Network TV this morning. For more, let's bring in the premier of Alberta, Canada, Danielle Smith. Already projecting a deficit, Smith keenly aware that her province's prospects are tied to the fate of the oil and gas industry. Everyone's going to take a little bit of a bite on that. Our producers are, the refiners in the United States are going to... Still, Smith remains unwilling to use oil exports to hit back.

We're not going to retaliate on energy. That is such an essential product for American consumers and American businesses. Meanwhile, energy analysts are scrambling to make sense of what the tariffs will mean for Canada's biggest export sector. This is not going to get better anytime soon and that all indications increasingly are that this is in fact going to get worse, that we have not seen the worst of this yet. The chaos caused by the Trump administration bad for business with the U.S. but potentially good news for plans to build pipelines in this country.

We definitely do need basically a pipeline in every direction except south. It's kind of the mantra I've been going with. The price of oil is already slumping and worries about a slowing global economy and an increase in supply from OPEC countries could soon add to that slide. More bad news for Canada's oil patch and the people and provinces that depend on it. Erin Collins, CBC News, Calgary. As Canadian business owners and workers brace for impact, consumers should be prepared to take a hit. The retaliatory tariffs targeting American exports are going to push up prices at Canadian grocery stores.

And it won't take long. Business reporter Anis Hadari has more. Not happy with the news. At a family foods grocery store in northwest Calgary, Ruth Lee has some thoughts about the long threatened tariffs actually happening. It's going to be tough for a lot of people. I mean it's tough already with the prices going up and stuff but I think it's just going to hit us when we least expect it. Counter tariffs, the retaliation against the United States are going to make

imported products more expensive for Canadians. That means prices could go up for things from outside the country and it's already on other shoppers minds too. Trying to buy Canadian, there's not a lot of choice in some products. It's going to increase everything. Tariffs will apply to $30 billion worth of US products in Canada as of today. That includes foods like citrus fruits, chicken and turkey, tea and coffee.

What import tariffs do, particularly for a small country like Canada, is they raise the consumer prices, right? Nicholas Lee is an associate professor of economics and a food price researcher at Toronto Metropolitan University. And the reason why we import a lot of food from the US is they're the cheapest supplier. The reason those US products, you know, sell some of it is because people like the taste or the characteristics. But many, you know, for many food stuffs, it is really just about price. So when can you expect to see prices go up?

It depends on how often businesses need to bring in new stock. You can't exactly keep something like oranges on the shelf forever. It's gonna be relatively quick, but of course it will vary for the freshest produce and things, the effects could be kicking in next week. But there's another problem coming. Both the US tariffs and the Canadian ones striking back could cause the loonie to drop.

All imports, no matter where they come from, from planet Earth, will become more expensive with the currency, the Canadian dollar, depreciating. Ian Lee teaches business strategy at Carleton University in Ottawa. He warns of long-term consequences that go beyond the price of a glass of orange juice. It's going to lead to a permanent decline in our prosperity and our standard of living if the tariffs remain. But it's back to short-term thinking at the grocery store in Calgary, at least for Ruth Lee. And I know because I'm here for a specific thing, I am going to get it regardless of whether it's from the states or not.

But I don't think it is. I think it's made in Winnipeg, so I'm happy with that. Next time, her grocery bill may be that next casualty of a trade war. Anis Hidari, CBC News, Calgary. This is Your World Tonight from CBC News. If you want to make sure you stay up to date and never miss one of our episodes, follow us on Spotify, Apple, wherever you get your podcasts. Just find the follow button and lock us in. Arab leaders have endorsed an Egyptian plan for what could happen in the Gaza Strip once the war is over.

It lays out how to rebuild by 2030 without removing the people who live there. Donald Trump had been calling for Palestinians to be moved out of Gaza and the area transformed into a beach destination. Israel has embraced that plan. No matter the arrangement, nothing is possible without a ceasefire. Israel's foreign minister says his country is ready to continue to the second phase of a ceasefire. Gideon Saar says Israel is ready to extend the first phase with conditions.

We demand total demilitarization of Gaza Strip, Hamas and Islamic Jihad out and give us our hostages. If they agree to that, we can implement tomorrow. We will only have to then to discuss the ratio or the terrorists that want to get out from our jail. Israel has paused aid into Gaza. Sa'ar says Hamas is using humanitarian aid for itself, selling it to make money to continue fighting Israel. He says that means Israel is essentially financing the war against itself. The mineral deal between the US and Ukraine that fell apart following that dramatic scene in the Oval Office could be back on track.

Donald Trump is expected to bring it up tonight. Earlier today, Ukraine's president said he's ready to sign a deal anytime. Volodymyr Zelensky's comment came in a long statement, his first since the U.S. announced it was pausing all military aid to his country. Chris Brown reports. Ukrainians feared this day might come, that the U.S., their strongest, most important ally might cut off, at least for the moment, supplies of missiles and other military hardware. The word betrayal featured in a lot of comments from ordinary Ukrainians. Yes, it is betrayal. Let's call it the way it is, said Kiev lawyer Olena Belova.

Near the front lines in Donetsk, in the Ukrainian city of Kramatorsk, a gunner who goes by Ihor said, it's bad, and what's coming could be worse. But the main thing is not to give up no matter the situation. Ukraine relies on the US for most of its advanced weapons systems especially air defense and long-range rockets but James Nixie of London-based Chatham House says the most immediate impact will be a blow to Ukrainian morale. The harsh reality is that the Ukrainians will have to do more with less, but at the same time, that is possible. I mean, the Ukrainians have always been the underdog in this fight. They've always played defense better than offense.

When they're willing to talk peace, I think President Trump will be the first person to pick up the phone. Vice President JD Vance appeared to suggest in a Fox News interview last night that the administration is still willing to engage with Volodymyr Zelensky. This afternoon, Ukraine's president released a long statement on social media, and while he didn't directly apologize for Friday's humiliating Oval Office confrontation, Zelensky said it was regrettable. He also said he's ready to work under US President Donald Trump's strong leadership to get a peace that lasts

and he's grateful for Trump's help with the war. Later in his evening address, Zelensky said his officials are trying to get more information about what will happen to the US aid. Our resilience is stronger now, he said, but maintaining a normal partner-based relationship with America is crucial for truly ending the war. None of us wants an endless war.

Good morning, everyone. European allies seem to anticipate the US move. European Commission head Ursula von der Leyen said the bloc will unlock new capital for countries to spend on collective defense. Rearm Europe could mobilize close to 800 billion euros of defense expenditures for safe and resilient Europe. Kremlin voices, on the other hand, have sounded practically giddy at the weapons pause, saying Trump's decision means the Ukrainians won't have anything to fight back with.

Chris Brown, CBC News, London. We'll end tonight with our top story and a little more on what Canadians are talking about, the trade war that has erupted between the United States and Canada. It keeps happening. The US national anthem booed at an NHL hockey game. The phenomenon has been a sign of the emotional toll the dispute is taking on Canadians.

And it's something Prime Minister Trudeau spoke about earlier today. Canadians are not angry at the American people for this. Canadians are hurt. We're going to choose to not go on vacation in Florida or Old Orchard Beach or wherever. We're going to choose to try to buy Canadian products and forgo bourbon and other classic American products. And yeah, we're probably going to keep booing the American anthem. But let me tell Americans, we're

not booing you, we're not booing your teams, we're not booing your players. We're booing a policy that is designed to hurt us. And we're insulted and we're angry, but we're Canadian. Which means we're going to stand up for each other, we're going to fight, and we're going to win. Thank you for joining us. This has been Your World Tonight for Tuesday, March 4th. I'm Susan Bonner. Talk to you again.