theglobalsun – U.S. President Donald Trump announced on Thursday that he is temporarily pausing tariffs on certain Canadian goods until April. This offers a partial break from the 25 percent levy. While this decision provides short-term relief, the move highlights the ongoing instability in U.S.-Canada trade relations under Trump’s administration.
The White House clarified that this tariff suspension applies only to Canadian exports that comply with the Canada-U.S.-Mexico Agreement (CUSMA). Some U.S. importers had previously opted to pay a lower tariff under the “most favored nation” rate instead of adhering to complex CUSMA rules. However, under the new directive, goods that do not meet CUSMA requirements will still face a 25 percent tariff. While non-compliant energy products and potash will be taxed at 10 percent.
Canada Responds with Delayed Retaliatory Tariffs
Finance Minister Dominic LeBlanc has been negotiating with U.S. Commerce Secretary Howard Lutnick to address these trade tensions. He acknowledged that some Canadian companies have yet to complete all necessary CUSMA documentation but expressed confidence that most exports either already comply or can do so quickly.
Despite the temporary relief, LeBlanc emphasized that this is not the end of the dispute. Trump’s administration plans to impose additional tariffs on steel and aluminum in the coming weeks. In response, Canada has decided not to lift its existing tariffs on $30 billion worth of U.S. goods. However, as a sign of goodwill, Canada will delay implementing a second round of retaliatory tariffs worth $125 billion until April 2. Aligning with Trump’s timeline for new trade measures.
LeBlanc reaffirmed Canada’s goal of restoring trade policies to their pre-Trump state. Calling for the complete removal of all tariffs imposed during this trade war.
Canada Refuses to Back Down on Trade Dispute
Prime Minister Justin Trudeau reaffirmed Canada’s position on Thursday, stating that the country will continue imposing retaliatory tariffs and other trade measures until President Donald Trump removes all tariffs on Canadian goods. Speaking at a news conference, Trudeau made it clear that Canada will not accept partial relief or temporary suspensions.
“Our goal is to get all tariffs removed,” Trudeau said. He emphasized that Canada holds a strong bargaining position, as the U.S. depends on Canadian exports. He also noted that Canadians remain united in resisting what he called an unjustified trade war initiated by the U.S.
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Provincial Leaders Take Action Against U.S. Policies
Ontario Premier Doug Ford announced that the province will impose a 25 percent levy on electricity supplied to 1.5 million Americans starting Monday. Ontario provides power to Minnesota, New York, and Michigan, and Ford stated that the tariffs will remain in place as long as Trump continues to threaten Canadian exports.
“This whole thing with President Trump is a mess,” Ford said. “This reprieve, we went down this road before. He still threatens the tariffs on April 2.”
British Columbia Premier David Eby also confirmed that his government will move forward with new fees on commercial trucks traveling from the U.S. through the province to Alaska. He criticized Trump’s handling of trade policies, accusing him of causing instability in North American markets.
Matthew Holmes, executive vice-president of the Canadian Chamber of Commerce. He welcomed Trump’s tariff delay but warned that it is not a reason to celebrate. He called for a long-term resolution, stating that Canada must continue to demand the full removal of all tariffs to secure a stable and fair trade agreement with the U.S.
Canada Faces New Trade Challenges as Trump Imposes Metal Tariffs
Despite granting Canada a temporary break from broader tariffs linked to fentanyl and border security. President Donald Trump confirmed on Thursday that his administration will proceed with a 25 percent tariff on all steel and aluminum imports next week. Canada, as the leading exporter of both metals to the U.S., is expected to be significantly impacted by the decision.
These targeted tariffs have raised concerns in Canada. As similar measures in Trump’s first term led to a sharp decline in exports. According to Statistics Canada, aluminum exports to the U.S. dropped by nearly 50 percent in 2019 due to previous tariffs, putting jobs and businesses at risk.
Trump also hinted at future challenges for Canada’s auto industry, stating that exemptions for Canadian and Mexican auto exports will end next month. This decision could further strain the trade relationship between the two countries and impact manufacturers that depend on cross-border supply chains.
Meanwhile, Trump’s unpredictable trade policies have unsettled financial markets, with major U.S. stock indexes falling sharply on Thursday. However, Trump dismissed concerns about market instability, attributing the sell-off to “globalists” who, according to him, are fearful of his “America First” economic strategy.
Trudeau and Trump Clash Over Trade and Tariffs in Phone Call
Prime Minister Justin Trudeau described his phone call with President Donald Trump as “colorful” and tense, as the two leaders debated ways to resolve the ongoing trade war. The 50-minute conversation, which took place on Wednesday, included heated exchanges but also led to discussions about potential short-term solutions.
Trudeau acknowledged that while a resolution might be possible in the near future, Trump remains committed to tariffs over the long term. He stated that Canada must prepare for a prolonged trade war initiated by the U.S.
A senior Canadian official revealed that Trump used profanity multiple times, particularly when discussing dairy trade policies, a long-standing source of friction between the two countries. Trump also grew animated when addressing fentanyl, an issue he claims Canada has not done enough to control. Trudeau countered by citing U.S. border seizure data, arguing that Canada is actively combating the problem. However, Trump and Vice President JD Vance pushed back, insisting that seizures alone are not an adequate measure of the issue.
Despite the tension, the call ended on a relatively positive note. Both leaders agreed to have their teams explore the possibility of exempting all CUSMA-compliant products from tariffs. They also discussed what concessions Canada might offer in return to ease trade restrictions.
