Canada delays new tariffs in response to US suspension
Following the US decision to suspend tariffs on certain Canadian goods until 2 April, Canadian Finance Minister Dominic LeBlanc announced that Canada would delay implementing the second tranche of its tariffs. However, many Canadian exports to the US will still be subject to tariffs.
The US has decided to suspend until 2nd April the tariffs imposed on that portion of imports from Canada that comply with the requirements of CUSMA, the Canada-United States-Mexico Agreement, the Canadian Finance Minister announced 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.
The US President, Donald Trump, announced on Thursday that tariffs imposed on some Canadian exports on Tuesday are suspended for about a month — until 2nd April. The broadcaster CBC emphasised that tariffs concern exports that comply with CUSMA requirements and should be protected from tariffs.
Nevertheless, over 60 percent of Canadian exports will still be affected by American tariffs, highlighted the Associated Press Agency.
On Tuesday, in response to American tariffs, Canada imposed 25 percent tariffs on American exports. Initially, tariffs were to be implemented on goods worth approximately 17 billion pounds, and after 21 days, additional tariffs were to apply to goods worth approximately 70 billion pounds. This latest decision by Canada concerns this second tranche.
Canadian tariffs were challenged by the US at the World Trade Organisation (WTO). Canadian Prime Minister Justin Trudeau reiterated on Thursday that Canadian retaliatory tariffs will be lifted only when the US withdraws its tariffs.
Canadian provinces do not remain idle against the US
On Thursday, the Premier of Ontario announced that this Canadian province will apply a 25 percent export tariff on electricity sold to the United States.
Meanwhile, the Premier of British Columbia announced on Thursday that the government will present to the parliament a bill that would allow for the imposition of fees on American trucks travelling from the US to Alaska, Canadian media reported.
The US announced tariffs on Canada and Mexico on Tuesday, March 4th. A day later, tariffs on cars and other automotive products from Mexico and Canada were suspended for a month. On Thursday, Trump announced a delay in tariffs on goods and services from Mexico until 2nd April.
