Canada Delays Second Wave of Tariffs on US Goods Until April 2
Canada has announced a temporary suspension of its second wave of tariffs on US goods until April 2, following a decision by US President Donald Trump to delay tariffs on Canada-US-Mexico Agreement (CUSMA)-compliant exports.
Ottawa: Canada has announced a temporary suspension of its second wave of tariffs on US goods until April 2, following a decision by US President Donald Trump to delay tariffs on Canada-US-Mexico Agreement (CUSMA)-compliant exports.
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Canadian Finance Minister Dominic LeBlanc confirmed the move on Thursday, stating:
“The United States has agreed to suspend tariffs on CUSMA-compliant exports from Canada until April 2. As a result, Canada will not proceed with the second wave of tariffs on 125 billion Canadian dollars of US products while we continue to work for the removal of all tariffs.”
Canada’s Retaliatory Tariffs Still in Place
Despite the temporary delay, Industry Minister Francois-Philippe Champagne emphasized that Canada’s retaliatory measures remain active. Speaking to CTV News, he warned:
“As long as the threat remains, the pressure stays on. The Prime Minister has been clear on that. The only way you make that work is to keep the pressure.”
Trump Delays Tariffs on Canadian and Mexican Imports
On Thursday, Trump signed an executive order postponing 25% tariffs on certain Canadian and Mexican imports for a month. However, the delay does not apply retroactively, meaning tariffs paid between Tuesday and Thursday will not be refunded.
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According to the US order:
- USMCA-compliant auto-related imports from Canada and Mexico are exempt for a month.
- Canadian potash imported by US farmers faces a 10% tariff.
- Canadian energy products will also be subject to a 10% duty.
More Than Half of Canadian Imports Still Affected
Despite the temporary exemptions, reports indicate that over 62% of Canadian imports and half of Mexico’s non-compliant exports will still be subject to tariffs. Many Canadian industries, including electric vehicles, agricultural goods, electronics, steel, and trucks, remain at risk of additional duties.
Canada Prepares for a Prolonged Trade War
Canadian Prime Minister Justin Trudeau has indicated that trade tensions with Washington are unlikely to end soon. He stated:
“Ottawa will remain in a trade war with Washington for the foreseeable future despite exemptions for certain sectors.”
The second wave of Canadian retaliatory tariffs was initially set to take effect in late March, covering an additional $125 billion worth of US products. However, with Trump’s latest move, the implementation of these tariffs is now delayed until April 2.
The temporary halt in tariff escalation provides both nations a brief window to negotiate, but uncertainties remain over the long-term stability of the Canada-US trade relationship.
Stay updated for more news on this evolving trade dispute.
