U.S. President Donald Trump in the second day of the trade war handed the Big Three automakers a one-month exemption from tariffs for any vehicles associated with the United States–Mexico–Canada Agreement with the expectation that the companies would move production to the United States as soon as possible.

“He told them that they should get on it, start investing, start moving, shift production here to the United States of America, where they will pay no tariff,” White House press secretary Karoline Leavitt said. “That’s the goal.”

Click here to go straight to a recap of today’s tariff news.

The decision was made following a call between U.S. President Donald Trump and automakers Stellantis, Ford Motor Company and General Motors Company.

Prime Minister Justin Trudeau and President Trump  also spoke on the phone today about trade and fentanyl, the PMO said in a press release, adding that “both countries will continue to be in contact today.”

In a post to his Truth Social account following the call, Trump said, “I told him (Trudeau) that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped. He said that it’s gotten better, but I said, “That’s not good enough.”

Last night, U.S. Commerce Secretary Howard LutnickHoward Lutnick said in a media interview that the Trump administration could announce a pathway for tariff relief on Mexican and Canadian goods covered by North America’s free trade agreement as early as today.

Here are some of the developments today:

• automakers a one-month exemption from tariffs
• Navarro thinks Trudeau should ‘tone stuff down’
• Navarro thinks Trudeau should ‘tone stuff down’
• Lutnick hints of tariff reprieve for auto sectorLutnick hints of tariff reprieve for auto sector
• Navarro thinks Trudeau should ‘tone stuff down’
• Navarro thinks Trudeau should ‘tone stuff down’
• Navarro thinks Trudeau should ‘tone stuff down’
• Navarro thinks Trudeau should ‘tone stuff down’
• Lutnick hints of tariff reprieve for auto sector
• Navarro thinks Trudeau should ‘tone stuff down’

What has happened so far

U.S. President Donald Trump launched the trade war Tuesday, hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy.

“We have been ripped off for decades by nearly every country on Earth and we will not let that happen any longer,” Trump said last night in his first address to a joint session of Congress.

Canada has retaliated with $30 billion in tariffs of its own, and an additional $125 billion in levies set to take hold after 21 days. Prime Minister Justin Trudeau met with provincial premiers Tuesday afternoon to discuss “non-tariff measures” to hit back.

Mexican President Claudia Sheinbaum said her government would announce duties on targeted products and other measures Sunday.

How Canadians are fighting back

From British Columbia to Newfoundland, Canadians and their provincial representatives rallied against the tariffs, shunning American products and threatening more dire consequences if the trade war continued.

Ontario Premier Doug Ford says he will impose a 25 per cent surcharge on electricity going to northern states, and has threatened to cut off power altogether if U.S. tariffs remain in place in April. New Brunswick also says cutting off electricity to Northern Maine is “on the table.”

Many provinces say they will limit U.S. companies from procurement contracts and are removing American alcohol from liquor store shelves across the country.

“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore,” said Premier Ford in a post on X.

Even local coffee shops got in on the protest.

In British Columbia, Kicking Horse Coffee changed the name of its Americano drink to “Canadiano,” and urged other Canadian shops to do the same.

What government is doing to help

The federal government will be there to support Canadians through measures like enhancing employment insurance “no matter the cost,” Trudeau said Tuesday, while provincial governments announced measures to shore up businesses.

Funds are being set aside to help export-focused businesses survive and develop new markets. Some are offering tax relief to businesses impacted by tariffs.

In Prince Edward Island, the premier is pushing to have tolls removed on the Confederation Bridge and the ferry that link the Island to the rest of Canada.

Get the latest news on the tariff war below.

Tariffs live blog

With files from Financial Post staff, The Canadian Press and Bloomberg News