MercoPress. South Atlantic News Agency

Trump extends tariffs pause to Canada

”It’s an important step, but we’re not at the end of the road,” Canadian Finance Minister Dominic LeBlanc said

US President Donald Trump extended to Canada a waiver on the 25% tariffs he had given Mexico earlier Thursday until April 2, 2025. The Republican leader signed an executive order exempting goods compliant with the USMCA trade agreement and reducing the tariff on Canadian potash - which is used in fertilizer - to 10%. This follows his imposition of the tariffs, citing concerns over fentanyl trafficking and irregular migration.

This decision came after talks with Canadian PM Justin Trudeau and US carmaking executives to protect American companies, such as Ford and GM, from supply chain disruptions. In response, Canada paused a second round of retaliatory tariffs, Canadian Finance Minister Dominic LeBlanc announced, “while we continue to work for the removal of all tariffs.” However, Ottawa kept previous duties on US goods. In addition, Ontario will impose a 25% energy surcharge despite the 30-day pause.

“Hopefully, we’re lining up a conversation and a discussion with the Americans that’s much more coherent,” LeBlanc also said. “We want to get to a position that we were in two weeks ago, where there are no tariffs applied to the trade between Canada and the United States. It’s a first step. It’s an important step, but we’re not at the end of the road.”

Trump plans “reciprocal” tariffs on all countries starting April 2, including 25% duties on steel and aluminum from Canada and Mexico, causing ongoing uncertainty for North American trade. The S&P 500 dropped 1.8% amid the policy shifts, though Trump downplayed market concerns, focusing on long-term U.S. strength. About 40-49% of Canada’s and Mexico’s U.S. exports are USMCA-compliant, with many firms now rushing to adjust paperwork or supply chains to avoid future tariffs.