A senior Canadian government official says Prime Minister Justin Trudeau is not willing to lift Canada’s retaliatory tariffs if Trump leaves any tariffs on Canada, The official confirmed the stance on condition of anonymity as they were not authorized to speak publicly on the matter.

Prime Minister Justin Trudeau of Canada warned that the Trump administration’s tariffs were leading to a trade war. Mexico’s leader vowed to impose countermeasures on Sunday.

As Trudeau was speaking, Lutnick told CNBC that Trump was deciding whether to exempt all trade covered by the free trade agreement with Canada, the U.S. and Mexico from the 25 per cent tariffs until April 2, which he announced for the auto-sector on Wednesday.