The Canadian government has delayed its second set of retaliatory measures against US tariffs by one week, following President Donald Trump’s decision to postpone levies on most Canadian and Mexican goods for a month.
“As a result, Canada will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs,” finance minister Dominic LeBlanc announced on X.
Canada’s existing 25 per cent tariff on $30 billion in U.S. goods remains active, whilst the additional tariffs on American products worth $125 billion have been rescheduled to April 2.
Canada planned to implement 25% tariffs on C$155 billion ($107 billion) of American goods starting Tuesday if the US proceeds with its proposed tariffs on Canadian products.
Trump halts tariffs on some Canadian, Mexican imports
Trump signed an executive order on Thursday waiving the 25 per cent tariff on Canadian and Mexican imports under the Canada-US-Mexico Agreement (CUSMA), which experts indicate covers 95 per cent of bilateral trade.
The suspension, which will remain in effect until April 2, halts duties of up to 25% on these neighbouring nations. These tariffs were previously implemented under the North American trade framework earlier in the week.
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This decision follows a similar one-day-prior exemption granted to the automotive industry. The automotive exemption, lasting one month, was approved for vehicles moving under the United States-Mexico-Canada Agreement (USMCA) after consultations with major US automobile manufacturers Stellantis, Ford, and General Motors.
Nevertheless, the White House clarified that substantial portions of Canadian and Mexican exports would continue facing tariffs. A representative indicated that about 62% of Canadian imports, predominantly energy-related goods, would still incur duties, albeit at a lower rate of 10%. Conversely, approximately half of Mexican imports, covered under the USMCA, will not face additional charges.
