U.S. suspends Canadian tariffs until April 2; Canada holds off retaliatory measures
After the US decided to suspend some tariffs on Canadian goods until April 2, 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 face tariffs.
The US has chosen to suspend, until April 2, the tariffs imposed on imports from Canada that meet the requirements of CUSMA, the Canada-United States-Mexico Agreement, as the Canadian Finance Minister shared 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, stated Dominic LeBlanc.
US President Donald Trump announced on Thursday that tariffs imposed earlier in the week on some Canadian exports are suspended for about a month, until April 2. Public broadcaster CBC noted that these tariffs affect exports that comply with CUSMA requirements, which should be protected from tariffs.
Nevertheless, according to the Associated Press, over 60% of Canadian exports will still be affected by American tariffs.
On Tuesday, Canada imposed 25% tariffs on American exports in response to American tariffs. Initially, these tariffs were set to apply to goods worth 22 billion US dollars, with additional tariffs on goods worth 90 billion US dollars scheduled after 21 days. Canada's recent decision pertains to this second tranche.
The US has 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 US withdraws its tariffs.
Canadian provinces take action against the US
On Thursday, the Premier of Ontario announced that this Canadian province will implement a 25% export tariff on electricity sold to the United States.
Meanwhile, the Premier of British Columbia announced on Thursday that the government would present a bill to parliament that would allow for the imposition of fees on American trucks traveling from the US to Alaska, as reported by Canadian media.
The US announced tariffs targeting 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.
