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Canada postpones US counter-tariffs following Trump’s move but ‘will remain in trade war’
Canada's first phase of retaliatory tariffs on $30 billion in US goods began Tuesday, responding to Trump's 25% levies on most Canadian imports.
Canada will delay imposing counter-tariffs on $125 billion worth of US goods after US President Donald Trump agreed to suspend levies on Canadian exports under a North American trade deal, Canadian finance minister Dominic LeBlanc announced on Thursday.
“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,” LeBlanc posted on X.
The first phase of Canada’s retaliatory tariffs, covering $30 billion worth of US goods, took effect Tuesday in response to Trump’s 25% levies on most Canadian imports. Two senior Canadian officials told the Associated Press that despite Trump postponing some tariffs on Canadian goods for a month, these initial tariffs will remain in place.
Ottawa had originally planned to impose further tariffs on US products, including electric vehicles, agricultural goods, electronics, steel, and trucks, by late March. However, following Trump’s decision to scale back tariffs, Canada has pushed this measure to April 2.
Trump delays more tariffs on Canada, Mexico
Donald Trump announced Thursday that he is postponing 25% tariffs on many goods from Canada and Mexico for a month, easing concerns about a broader trade war.
Earlier in the day, Trump signed orders delaying levies on imports covered by the United States-Mexico-Canada Agreement (USMCA), offering temporary relief to businesses and consumers following market backlash. However, a White House official confirmed that the suspension is not retroactive, meaning tariffs already paid on imports from Tuesday to Thursday will not be refunded.
Canadian PM Justin Trudeau said that Ottawa will remain in a trade war with Washington “for the foreseeable future” despite exemptions for certain sectors.
In response to Trump's decision, Canada is delaying its second phase of retaliatory tariffs against the U.S. The suspension of duties will take effect at 12.01 am Eastern time (10.31 am Indian Standard Time (IST))on Friday.
According to orders signed by Trump, imports from Mexico that comply with the 2020 USMCA trade agreement will be exempt from the 25% tariffs for a month. Similarly, auto-related imports from Canada that meet USMCA requirements will also avoid the tariffs for the same period. However, Canadian potash imported by US farmers will be subject to a 10% tariff, the same rate Trump plans to impose on Canadian energy products.
A White House official, speaking anonymously, stated that about 62% of imports from Canada are likely to face the new tariffs as they do not comply with USMCA. Additionally, half of Mexico’s non-compliant imports will also be taxed under Trump’s orders.
(With inputs from Agencies)
