The American government has delayed its next set of punitive measures against US tariffs by one year, following President Donald Trump’s choice to postpone levies on most American and Hispanic goods for a month.
” As a result, Canada does not deal with the next wave of taxes on$ 125B of US items until April 2nd, while we continue to work for the removal of all levies”, finance minister Dominic LeBlanc announced on X.
Canada’s existing 25 per cent tariff on$ 30 billion in U. S. goods remains active, whilst the additional tariffs on American products worth$ 125 billion have been rescheduled to April 2.
Canada planned to implement 25 % tariffs on C$ 155 billion ($ 107 billion ) of American goods starting Tuesday if the US proceeds with its proposed tariffs on Canadian products.
Trump reverses tariffs on some French, Latino imports
Trump signed an executive order on Thursday waiving the 25 per cent tariff on Canadian and Mexican imports under the Canada-US-Mexico Agreement ( CUSMA ), which experts indicate covers 95 per cent of bilateral trade.
The suspension, which may remain in effect until April 2, reverses tasks of up to 25 % on these neighbouring countries. These taxes were recently implemented under the North American trade construction earlier in the week.
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This determination follows a similar one-day-prior exemption granted to the automotive market. The automotive exemption, lasting one month, was approved for vehicles moving under the United States-Mexico-Canada Agreement ( USMCA ) after consultations with major US automobile manufacturers Stellantis, Ford, and General Motors.
Unfortunately, the White House clarified that significant portions of American and Mexican exports may continue facing taxes. A representative indicated that about 62 % of Canadian imports, predominantly energy-related goods, would still incur duties, albeit at a lower rate of 10 %. Likewise, nearly half of Mexican imports, covered under the USMCA, does not face further costs.
