Trump Administration Suspends Tariffs on Canada

In a significant move, the Trump administration has decided to temporarily suspend a major portion of tariffs imposed on Canada. This decision has led Canada to postpone the second phase of its retaliatory tariffs. The announcement was made on March 6, following reports from various international media outlets.

Canada's Response to Tariff Suspension

Canadian Finance Minister Dominic LeBlanc announced that the implementation of an additional retaliatory tariff, worth 125 billion Canadian dollars, would be delayed until April 2. This decision comes in response to President Trump’s suspension of tariffs on goods covered under the free trade agreement. Despite this, the Canadian government has maintained the first phase of retaliatory tariffs on $30 billion CAD worth of U.S. imports.

Continued Enforcement of Initial Tariffs

According to the Associated Press, Canadian government officials have stated that the first phase of retaliatory tariffs will continue to be enforced, despite the suspension of tariffs on free trade agreement-covered goods by the Trump administration. This move underscores the ongoing trade tensions between the two nations.

Background of the Trade Dispute

Earlier, on March 4, Canadian Prime Minister Justin Trudeau criticized President Trump’s 25 percent tariffs on Canadian goods as "foolish" and imposed retaliatory tariffs on $30 billion CAD worth of U.S. imports. Trudeau also announced plans to impose an additional $125 billion CAD in retaliatory tariffs on March 25, a move that has now been delayed due to the recent developments.

Executive Order by President Trump

On the same day, President Trump signed an executive order that exempts imports from Mexico and Canada, covered under the United States-Mexico-Canada Agreement (USMCA), from the 25 percent tariff until April 2. This decision marks a pivotal moment in the trade relations between these North American countries.