In the latest development, US President Donald Trump on Thursday has suspended the 25% tariffs he imposed this week on most goods from Canada and Mexico, amid widespread fears of the economic fallout from a broader trade war.
The exemptions, covering the two largest US trading partners, expire on April 2 when Trump has threatened to impose a global regime of reciprocal tariffs on all US trading partners.
President Trump had imposed a 25% levy on imports from both countries on Tuesday and had mentioned an exemption only for Mexico earlier on Thursday. However, the amendment he signed on Thursday afternoon covered Canada as well.
The White House insists its tariffs are about stopping the smuggling of fentanyl, but the taxes proposed by Trump have caused a gaping wound in the decades-old North American trade partnership. Trump’s tariff plans have also caused the stock market to sink and alarmed US consumers, according to AP.
In addition to his claims about fentanyl, Trump has insisted that the tariffs could be resolved by fixing the trade deficit and he emphasized while speaking in the Oval Office that he still plans to impose ‘reciprocal’ tariffs starting on April 2.
The AP quoted a White House official saying that about 62% of imports from Canada would likely still face the new tariffs because they are not USMCA compliant. Half of imports from Mexico that are not USCMA compliant would also be taxed under the orders being signed by Trump, the official said.
Canada’s Finance Minister Dominic LeBlanc said that they will also hold off imposing counter-tariffs on $125 billion in US goods.
In a post on X, LeBlanc posted, “The United States has agreed to suspend tariffs on CUSMA-compliant exports from Canada until April 2nd. As a result, Canada will not proceed with the second wave of tariffs on $125B of U.S. products until April 2nd, while we continue to work for the removal of all tariffs.”
The United States has agreed to suspend tariffs on CUSMA-compliant exports from Canada until April 2nd.
As a result, Canada will not proceed with the second wave of tariffs on $125B of U.S. products until April 2nd, while we continue to work for the removal of all tariffs.
— Dominic LeBlanc (@DLeBlancNB) March 6, 2025
Trump Delays Tariff On Mexico
Trump on Thursday said he has postponed tariffs on most goods from Mexico for a month after talks with the country’s president.
The announcement from the White House comes after Commerce Secretary, Howard Lutnick, said tariffs on both Canada and Mexico would “likely” be delayed. This is the second time that Trump announced one-month postponement since the announcement of the import taxes in February.
“We are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl,” Trump said on Truth Social.
The announcement comes even as Trump has already softened the attack on Canada and Mexico, granting automobile manufacturers a one-month reprieve after they warned of widespread disruption.
Trump, after returning to the White House in January, had pledged to target Canada and Mexico with tariffs on his first day back in office.
He said he was mulling imposing the tariffs at the start of February. However, in February, he offered Canada and Mexico a one-month delay at the 11th hour.
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