Canada’s initial retaliatory tariffs against the U.S. will remain in place despite President Donald Trump postponing 25% tariffs on many imports from Canada for a month, two senior Canadian government officials said.
Trump said Thursday that he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.
Two senior Canadian governments official told the Associated Press that Canada’s first wave of response tariffs will remain. The officials spoke on condition of anonymity as they were not authorized to speak publicly about the matter.
Canada’s initial $30 billion Canadian (US$21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Canada suspends second wave of tariffs
Finance Minister Dominic LeBlanc said Canada has suspended a second wave of retaliatory tariffs after Trump signed the executive order to pause some duties. Ottawa had planned a further $125 billion (US$87 billion) in tariffs in three weeks on American products like electric vehicles, fruits and vegetables, diary, beef, pork, electronics, steel and trucks.
Ontario Premier Doug Ford, the leader of Canada’s most populous province, also said Thursday that, starting on Monday, the province will charge 25% more for electricity shipped to 1.5 million Americans in response to Trump’s tariff plan. Ontario provides electricity to Minnesota, New York and Michigan.
Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump.
“The only thing that’s certain today is more uncertainty. A pause on some tariffs means nothing. Until President Trump removes the threat of tariffs for good, we will be relentless,” Ford posted on X.
Ontario and other Canadian provinces will keep American booze off shelves.
British Columbia Premier David Eby also said his province will introduce legislation in the coming days that would give it the ability to levy fees on commercial trucks traveling from the United States through the province to Alaska. He said Canadians won’t let up until the tariffs are taken off the table.
“Yet again the president is sowing uncertainty and chaos attempting to undermining our economy by implementing tariffs and then pulling them off,” Eby said.
Trudeau sees trade war for ‘foreseeable future’
Canadian Prime Minister Justin Trudeau said earlier Thursday that he expects Canada and the U.S. to be in a trade war for the foreseeable future after having what he called a colorful but constructive call with Trump on Wednesday.
A senior Canadian government official said the call became heated and Trump used profanity when Trump complained about protections in Canada’s dairy industry. The official, who spoke on condition of anonymity as they were not authorized to speak publicly about the call, said Trudeau did not use profanity.
White House Press Secretary Karoline Leavitt deferred to Trump’s comments made to reporters in the Oval office about the call.
Imports from Mexico that comply with the 2020 USMCA trade pact would be excluded from the 25% tariffs for a month, according to the orders signed by Trump. Imports from Canada that comply with the trade deal would also avoid the 25% tariffs for a month, while the potash that U.S. farmers import from Canada would be tariffed at 10%, the same rate at which Trump wants to tariff Canadian energy products.
Roughly 62% of imports from Canada would likely still face the new tariffs because they’re not USMCA compliant, according to a White House official who insisted on anonymity to preview the orders on a call with reporters. Half of imports from Mexico that are not USCMA compliant would also be taxed under the orders being signed by Trump, the official said.
Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.
Trump grants one-month exemption for US automakers
A day after the new tariffs took effect, Trump had said he would grant a one-month exemption for U.S. automakers. The announcement came after Trump spoke Wednesday with leaders of Ford, General Motors and Stellantis, the parent company of Chrysler and Jeep. His press secretary said Trump told the chief executives to move auto production to the U.S. to avoid tariffs.
Despite Trump’s claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.
