In a stunning revelation that’s sending shockwaves through Canada, New Brunswick Premier Susan Holt disclosed on March 30, 2025, that the country might dodge the worst of U.S. President Donald Trump’s looming global tariffs.
After a high-stakes meeting with Prime Minister Mark Carney and other provincial leaders on Friday, Holt shared an unexpectedly optimistic outlook.
Canada could land in the lowest tariff tier, potentially softening the economic blow many feared.
With Trump set to unleash sweeping trade barriers as early as Wednesday, this development has Canadians on edge—and for good reason.
Here’s everything you need to know about this unfolding saga, from the tariff tiers to Canada’s secret retaliatory playbook.
Table of Contents
A “Favorable” Hit in a High-Stakes Trade War
The clock is ticking. Trump’s promise of global tariffs—a bold, controversial move aimed at reshaping international trade—has dominated headlines since his re-election.
On Thursday, he dropped a bombshell: a 25% tariff on all finished vehicles imported into the U.S., a decision that could cripple Canada’s auto industry.
But according to Holt, Canada might not be in the crosshairs as much as other nations.
Prime Minister Carney, fresh off a phone call with Trump, assured premiers that Canada is slated for a “favorable” tariff tier—possibly as low as 10% to 15%.
“It’s encouraging,” Holt said, her tone cautiously hopeful.
“If you can call it favorable under these circumstances, it looks like Canada will face a lower level of tariffs compared to other trading partners.”
Even better?
These tariffs might not blanket the entire Canadian economy.
For New Brunswick, where projections initially warned of 11,000 job losses, this could mean a lifeline—a chance to shrink that number significantly.
Carney echoed this sentiment earlier in the week, framing Canada’s position as “the best deal of a bad deal.”
Speaking to reporters on Thursday, he hinted at a silver lining amid the chaos of Trump’s trade policies.
“We’re navigating a tough situation,” Carney said, “but we’re positioned better than most.”
Behind Closed Doors: Carney’s Call with Trump
The stakes couldn’t be higher, and the diplomatic dance between Canada and the U.S. is in full swing.
On Friday, Carney held his first official call with Trump since taking office—a conversation both leaders described as “cordial” and “very productive.”
Trump, posting on Truth Social, kept it brief: “I just finished speaking with Prime Minister Mark Carney.”
Notably absent?
His past jabs at Canadian leaders, like calling former PM Justin Trudeau “governor.”
This time, Trump seemed to strike a different chord, with Carney noting that the U.S. president “respected Canada’s sovereignty” during their talk.
For Canadians, this call was more than just pleasantries—it was a glimpse into how the nation might weather Trump’s tariff storm.
Carney emerged from the discussion touting plans for a “new” economic and security relationship with the U.S., should he secure victory in next month’s federal election.
In the meantime, he’s keeping cabinet members in close contact with their American counterparts, including U.S. Commerce Secretary Howard Lutnick.
But don’t be fooled by the optimism—Trump hasn’t backed down.
Auto tariffs are still set to hit next week, and the broader global tariff rollout looms large. Canada’s fate hangs in the balance, and Carney isn’t tipping his hand just yet.
“In a negotiation, it doesn’t make sense to say what you’re going to do going forward,” he told reporters in Montreal, hinting at a calculated strategy simmering behind the scenes.
Canada’s Retaliatory Arsenal: What’s Cooking?
If Trump thinks Canada will sit idly by, he’s in for a surprise.
Holt revealed that Friday’s meeting with Carney and the premiers wasn’t just about damage control—it was about plotting a counterstrike.
“We want our response to be appropriate, strategic, and proportional,” she said, teasing a retaliatory plan that could give Canada leverage in this trade showdown.
Carney doubled down on this stance, promising to “fight back” against the auto tariffs.
In a video statement earlier this week, he declared, “Canada’s old relationship with the United States is over.”
He vowed retaliatory action if Trump follows through, though he kept the specifics under wraps.
Could it involve targeting U.S. exports?
Leveraging Canada’s energy dominance?
For now, the PM is playing it close to the chest, leaving analysts and citizens alike speculating about what’s up his sleeve.
Why Trump’s Tariffs? The Deficit Dilemma Unveiled
To understand Trump’s endgame, you have to follow the money—specifically, the U.S.’s staggering $1.83 trillion deficit for the 2024 fiscal year, as reported by the Treasury Department.
Canadian officials got a front-row seat to this logic during mid-March meetings in Washington with Trump’s trade team.
David Paterson, Ontario’s representative in D.C., broke it down on CBC’s Power & Politics two weeks ago: the tariffs are a revenue grab, plain and simple.
Paterson outlined three pillars of Trump’s fiscal strategy.
First, a massive budget resolution packed with spending and tax cuts—designed to keep taxes low and competitiveness high without ballooning the deficit further.
Second, slashing government spending via Elon Musk’s Department of Government Efficiency.
And third?
Tariffs—big, bold, and global—meant to rake in cash and lure investment back to American soil.
“Tariffs are now a global policy of the United States,” Paterson emphasized.
“This is a historic shift, and they know it.”
For Trump, it’s a gamble to plug the deficit hole while flexing economic muscle on the world stage.
But for Canada, it’s a direct threat to decades of cross-border trade harmony.
New Brunswick Premier and its High-Stakes Gamble
Back in New Brunswick, Susan Holt is cautiously optimistic but far from complacent.
The province’s economy—already bracing for a potential 11,000 job losses—could see a reprieve if Canada’s tariff tier holds at 10% to 15%.
“It’s not just about surviving this,” Holt told Rosemary Barton Live.
“It’s about positioning ourselves to come out stronger.”
The auto sector, a linchpin of Canada’s economy, remains a glaring vulnerability.
Trump’s 25% tariff on finished vehicles could kneecap exports, but if Canada secures a lower rate—or if certain industries are spared entirely—provinces like New Brunswick might dodge the worst.
Still, Holt and her fellow premiers are banking on Carney’s diplomatic finesse to steer the ship through these choppy waters.
The Bigger Picture: A Trade War Looms
Trump’s tariffs aren’t just a Canadian problem—they’re a global reckoning.
From Europe to Asia, nations are scrambling to assess the fallout.
For Canada, the U.S.’s closest trading partner, the stakes are uniquely high.
The Canada-U.S. trade relationship, built on decades of integration, is facing its toughest test yet.
And with Carney hinting at a “new” bilateral framework, the future of this partnership could look radically different by year’s end.
Analysts are divided.
Some see Trump’s tariffs as a masterstroke to revitalize American industry; others warn of a catastrophic trade war that could tank economies worldwide.
Former U.S. Ambassador to the UN Nikki Haley called the tariff impact “enormous” and slammed the policy as “reckless” in a recent Signal group chat—a rare public rebuke from a Trump ally.
What Happens Next?
With Trump’s tariff rollout just days away, Canada is on high alert.
Carney’s next moves—whether a phone call with Trump or a surprise countermeasure—could define his legacy and Canada’s economic fate.
For now, the nation holds its breath, hoping Holt’s optimism isn’t misplaced.
Will Canada emerge as the “best of a bad deal,” or is this just the calm before the storm?
One thing’s clear: this isn’t just about tariffs.
It’s about power, survival, and the future of global trade.
Stay tuned—this story is far from over.
Stay updated with CTC News
