Canada delays retaliatory tariffs as U.S. pauses trade duties
Canadian Finance Minister Dominic LeBlanc announced that following the United States' decision to suspend tariffs on certain Canadian goods until April 2, Canada will delay the implementation of the second tranche of its tariffs. However, many Canadian exports to the U.S. will still be subject to tariffs.
The U.S. decided to suspend until April 2 the tariffs on the portion of imports from Canada that comply with the requirements of CUSMA, the Canada-United States-Mexico Agreement, shared the Canadian Finance Minister on platform X.
As a result, Canada will not proceed with the second wave of tariffs on 125 billion Canadian dollars of U.S. products until April 2, while we continue to work for the removal of all tariffs, explained Dominic LeBlanc.
U.S. President Donald Trump announced on Thursday that Tuesday's tariffs imposed on some Canadian exports are suspended for about a month — until April 2. Public broadcaster CBC emphasized that tariffs concern exports that comply with CUSMA requirements and should be protected from tariffs.
Nevertheless, over 60 per cent of Canadian exports will still be affected by American tariffs, highlighted the Associated Press Agency.
On Tuesday, Canada imposed 25 per cent tariffs on American exports in response to American tariffs. Initially, tariffs were to be implemented on goods worth approximately 30 billion Canadian dollars, and after 21 days, additional tariffs were to apply to goods worth approximately 125 billion Canadian dollars. This latest decision by Canada concerns this second tranche.
The U.S. challenged Canadian tariffs at the World Trade Organization (WTO). Canadian Prime Minister Justin Trudeau reiterated on Thursday that Canadian retaliatory tariffs will be lifted only when the U.S. withdraws its tariffs.
Canadian provinces take action against the U.S
On Thursday, the Premier of Ontario announced that this Canadian province will apply a 25 per cent export tariff on electricity sold to the United States.
Meanwhile, the Premier of British Columbia announced on Thursday that the government will present a bill to the parliament that would allow fees to be imposed on American trucks traveling from the U.S. to Alaska, Canadian media reported.
The U.S. announced tariffs on Canada and Mexico on Tuesday, March 4. A day later, tariffs on cars and other automotive products from Mexico and Canada were suspended for a month. On Thursday, Trump announced a tariff delay on goods and services from Mexico until April 2.
