California Gov. Gavin Newsom (D-CA) said President Donald Trump will reverse new tariffs on Canada within a matter of days [1, 2].
The prediction comes as trade tensions escalate between the two North American neighbors, threatening supply chains and increasing costs for consumers and businesses.
In an exclusive interview with CTV News on Wednesday, Newsom said it is "a matter of days until Trump flips on tariffs and tries to save face" [2]. He said the president faces mounting political pressure at home, which will force a change in course to avoid further backlash [1].
The trade dispute has already prompted significant government intervention. Canada has announced a $7.5 billion federal aid package to support businesses affected by the tariffs [3]. This financial cushion aims to stabilize industries while the two nations navigate the dispute.
In response to the U.S. measures, Canada has implemented its own set of surtaxes on U.S. goods. These rates are set at either 25 percent or 50 percent depending on the item [4].
Newsom's comments suggest that the current trade posture is unsustainable for the U.S. administration. He said that the political cost of maintaining the tariffs will outweigh the perceived benefits of the policy. The governor's assessment highlights a growing divide between federal trade strategy and the economic interests of U.S. states that rely heavily on Canadian trade.
“"A matter of days until Trump flips on tariffs and tries to save face."”
The friction between the U.S. and Canada reflects a broader shift toward protectionist trade policies that risk destabilizing the USMCA framework. If Newsom's prediction holds, it suggests that domestic economic pressure—specifically from states with high trade volumes—remains the most effective lever for altering the current administration's foreign trade strategy.
