Logs are unloaded at Murray Brothers Lumber Company woodlot in Madawaska, Ontario on Tuesday, April 25, 2017.
President Donald Trump accused Ottawa of being "very rough" on the USA and slapped tariffs on imported Canadian lumber on Tuesday.
Trudeau cited free trade in the North American automotive sector as an example of how a auto part can cross the border up to six times before it ends up in a finished vehicle. "But they've outsmarted our politicians for many years, and you people understand that", he said.
The United States and Canada typically have friendly trade relationships but that has soured recently.
Trump's team chose to hit Canada with tariffs after talks failed to make it easier for United States dairy farmers to sell into Canada.
Last week, Trump in his speech in Wisconsin promised to fight against Canada's dairy trade practices that harm American farmers.
"This has been going on for a while".
The statement from Ottawa said dairy trade already favors the United States, explaining that the US receives $550 million in USA dairy while Canadian exports $110 million.
"Everyone thinks of Canada being wonderful and civil".
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Canada's dairy farmers agreed past year to sell milk ingredients used for cheese-making to Canadian processors, which include Saputo Inc and Parmalat Canada Inc, at prices competitive with global rates.
Trump's sharp comments also prompted a stern response from Canadian Prime Minister, Justin Trudeau, who spoke on Tuesday at Ontario-based software company, Vidyard.
The White House's interpretation glossed over Trudeau's aggressive tone and said the two leaders discussed dairy and lumber exports.
The president is also blasting Canada for protecting dairy manufacturers, a measure he says is putting USA farmers out of business.
Lumber and dairy are long-standing irritants - and were also a problem file under previous presidents.
Ross said the preliminary decision that was put out imposes those countervailing duties on softwood lumber from Canada.
The relations between the two biggest neighbors in North America deteriorated after the Trump administration in the United States made a decision to impose countervailing duties ranging from 3-24 percent on five Canadian lumber exporters to the United States.