Canada to hold off most tariffs on US after Trump pauses levies

Canada to hold off most tariffs on US after Trump pauses levies

PM Justin Trudeau sees a prolonged trade war despite breaks for certain sectors until all levies are lifted.

Canada Tariffs Alcohol
Canada refrained from imposing US$125 billion counter-tariffs after Donald Trump suspended duties under the North American trade deal. (AP pic)
OTTAWA:
Canada will hold off imposing counter-tariffs on US$125 billion in US goods, finance minister Dominic LeBlanc said Thursday, after US President Donald Trump agreed to suspend levies on Canadian exports covered by a North American trade agreement.

“Canada will not proceed with the second wave of tariffs on US$125 billion of US products until April 2nd, while we continue to work for the removal of all tariffs,” LeBlanc, who is leading Canada’s trade negotiations with its neighbour, posted on X.

A first phase of Canadian retaliatory tariffs on US$30 billion worth of US goods went into effect Tuesday after Trump slapped 25% levies on most Canadian imports into the US.

These will remain in effect, a Canadian government source told AFP.

Earlier Thursday, Trump signed orders to delay levies for imports covered by the United States-Mexico-Canada Agreement (USMCA), providing some reprieve to companies and consumers after blowback on financial markets.

Canadian Prime Minister Justin Trudeau said Ottawa will remain in a trade war with Washington for “the foreseeable future” even if there are “breaks for certain sectors.”

“Our goal remains to get these tariffs, all tariffs removed,” he added.

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