Canada Postpones Second Wave of Tariffs on US Products Until April 2
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Synopsis
On March 7, Canadian Finance Minister Dominic LeBlanc declared that Canada will suspend the second wave of tariffs on US goods until April 2, following an agreement with the US. This decision aims to alleviate trade tensions while Canada continues to pursue the removal of all tariffs.
Key Takeaways
- Canada delays second wave of tariffs on US goods until April 2.
- US agrees to suspend tariffs on CUSMA-compliant exports.
- More than half of Canadian imports may still face new tariffs.
- Retaliatory measures remain despite the US tariff delay.
- Canada’s initial retaliatory tariffs on $30 billion worth of US goods began recently.
Ottawa, March 7 (NationPress) Canadian Finance Minister Dominic LeBlanc announced that Canada will delay the second wave of tariffs on US goods until April 2.
"The United States has agreed to suspend tariffs on CUSMA (Canada-US-Mexico Agreement)-compliant exports from Canada until April 2," LeBlanc stated on his social media account shortly after US President Donald Trump revealed the tariff postponement.
"Consequently, Canada will not implement the second wave of tariffs on 125 billion Canadian dollars worth of US products until April 2, while we continue to strive for the removal of all tariffs."
Industry Minister Francois-Philippe Champagne remarked that Canada's retaliatory measures remain in place, despite Trump's recent decision to delay tariffs on some Canadian and Mexican goods until April 2, as reported by Xinhua news agency.
Local media indicates that over half of Canadian imports are not covered and will likely still incur the new tariffs due to non-compliance with USMCA.
"As long as the threat persists, the pressure remains," Champagne was cited by CTV News.
"The Prime Minister has been explicit on this matter. The only effective way to manage this is to maintain pressure."
On Thursday, Trump signed an executive order to delay tariffs on goods falling under the CUSMA.
The initial phase of Canada’s retaliatory tariffs, affecting $30 billion worth of US goods, commenced on Tuesday in response to Trump's 25 percent levies on most Canadian imports.
Canada had initially intended to impose additional tariffs on US products, such as electric vehicles, agricultural goods, electronics, steel, and trucks, by late March. However, following Trump's decision to scale back tariffs, Canada has shifted this measure to April 2.
Trump announced on Thursday that he is delaying 25 percent tariffs on numerous goods from Canada and Mexico for a month, alleviating fears of a broader trade conflict.
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 stated that Ottawa will remain engaged in a trade conflict with Washington "for the foreseeable future," despite exemptions for specific sectors.
In response to Trump's announcement, Canada is postponing its second phase of retaliatory tariffs against the US. The suspension of duties will commence at 12:01 a.m. Eastern time (10:31 a.m. Indian Standard Time) on Friday.
According to orders signed by Trump, imports from Mexico that adhere to the 2020 USMCA trade agreement will be exempt from the 25 percent tariffs for a month. Similarly, auto-related imports from Canada that align with USMCA requirements will also avoid the tariffs during this period. However, Canadian potash imported by US farmers will be subjected to a 10 percent tariff, the same rate Trump intends to impose on Canadian energy products.
An anonymous White House official indicated that approximately 62 percent of imports from Canada are likely to incur the new tariffs due to non-compliance with USMCA. Additionally, half of Mexico's non-compliant imports will also be taxed under Trump's directives.
