Trump Temporarily Halts Tariffs on Canadian Imports Until April 2
U.S. President Donald Trump previously announced a 25% levy on imports from Canada. After announcing a heavy tariff on Canadian goods, Trump has temporarily suspended it till April 2 and once again Canada has managed to avoid the heavy damaging tariffs from the White House.
It was specified that only those compliant with the Canada-U.S.-Mexico Agreement will be able to retain the benefits, while the importers who have opted for a low tariff rate (approx 62 %) rather than the CUSMA’s complex agreement rules will still face the punishing tariff.
Finance minister Dominic Leblanc believes that despite many companies having not filed the CUSMA paperwork, the compliance rate will soon reach 100 %, by which Canada will delay an additional $125 billion in tariffs till April 2.
Speaking on the incoming tariffs on Steel and Aluminium, trudeau said, “There is overwhelming support in Canada to stand up against this unjustified trade war,” and assured everyone “We will not back down until the tariffs are completely removed.” he stated that Canada is important for the global trades and has good leverage to negotiate the tariffs.
Trump says that raising this matter is a strategic move by Trudeau to gain support for re-election in his country. “Believe it or not, despite the terrible job he’s done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!,” Trump posted on TruthSocial.
Joining their Prime Minister, Ottawa Premier Doug Ford announced an additional levy of 25 % on the electricity exported to 1.5 million U.S. Customers while British Columbia Premier David Eby has confirmed his plans to levy extra fees on the trucks travelling to Alaska.
Matthew Homes, executive VP of the Canadian Chamber of Commerce, has mentioned that these tariffs are dangerous for the economy. Addressing Trump’s move, he said, “Trump is treating the North American economy like a game. We must ensure all tariffs are permanently removed.”
Along with this, Canada has also started consulting with the World Trade Organization (WTO). They haven’t accepted these tariffs in the past 4 years and aren’t planning to do so now.
The upcoming month will be significant in setting the future direction of the suggested tariffs because Canada is a leading exporter of Steel and aluminium metals to the U.S
The outcome of the negotiations between the U.S. and Canada is going to affect exports, imports, and employment generation in both countries for the following years to come.
