Trump pausing tariffs on some Canadian goods until April 2
John Paul Tasker | CBC News | Posted: March 6, 2025 3:44 PM | Last Updated: March 7
Canada to keep counter-tariffs in place, delay additional levies
U.S. President Donald Trump said Thursday he is again pausing his tariffs on some Canadian goods until April 2, offering the country at least a partial reprieve from a punishing 25 per cent levy.
Trump's actions are a welcome development, given just how damaging tariffs that big could be for the Canadian economy.
But the events of the last week show what Canada is in for over the next nearly four years: chaos, unpredictability and constantly moving goal posts from a White House that doesn't play by normal trade rules.
Even in announcing this supposed pause, White House officials said the tariff reprieve would only apply to Canadian exports that are "compliant" with the Canada-U.S.-Mexico Agreement (CUSMA).
Before this latest trade fracas, some U.S. importers bringing in Canadian products opted to pay a relatively low U.S. tariff rate (called a "most favoured nation" rate in trade parlance) rather than comply with some complicated CUSMA rules-of-origin policies that allow for entirely duty-free access.
The Associated Press reported that roughly 62 per cent of imports from Canada would likely still face steep tariffs, according to a White House official who insisted on anonymity to preview the new executive order on a call with reporters.
Finance Minister Dominic LeBlanc, who has been locked in negotiations with U.S. Commerce Secretary Howard Lutnick all week on these issues, said it's true some companies have not done all the CUSMA-related paperwork but "the vast majority of Canadian exports to the U.S. are or can quickly be CUSMA compliant."
"The number, we hope, will quickly rise to 100 per cent. That will take a lot of pressure off a number of sectors," LeBlanc said in an interview with CBC's Power & Politics.
But LeBlanc said "it's not the end of the road" in this trade saga — Trump's partial climbdown is just another pause and there are more of Trump's promised tariffs on steel and aluminium coming next week and beyond.
That's why Canada will not lift the tariffs it levied on $30 billion worth of American goods after Trump launched this trade war, LeBlanc said.
However, in a show of goodwill, LeBlanc said Canada has agreed to delay its second round of retaliatory tariffs worth $125 billion until April 2, when Trump's batch of so-called "reciprocal" tariffs are due to be imposed on countries around the world.
LeBlanc said Canada wants Trump's tariffs removed in their entirety, with trade rules returned to how they were before he was sworn into office in January.
The White House says these are its new rules for Canadian imports:
- Goods that do not satisfy CUSMA rules of origin are taxed at 25 per cent.
- Energy products and potash that fall outside the CUSMA preference are taxed at 10 per cent.
- Goods that claim and qualify for CUSMA preference face no tariffs.
Trudeau says Canada won't relent until all tariffs removed
Speaking to reporters at a news conference earlier Thursday, Prime Minister Justin Trudeau said Canada will hold firm and push ahead with retaliatory tariffs and other measures until Trump backs off entirely.
"Our goal is to get all tariffs removed," he said.
Canada has a strong hand to play in these negotiations — the U.S. needs the products the country sells and there's tremendous resolve in Canada to hold firm in the face of Trump's aggression, he said.
WATCH | Trudeau says call with Trump over tariffs was 'colourful':
"We are in a moment right now where Canada has a very, very strong bargaining position, because Canadians are so united and unequivocal about standing up for our country and standing up for our fellow citizens and being very firm that this is an unjustified and unjustifiable trade war launched by the Americans," he said.
Ontario Premier Doug Ford isn't backing down either. He said Thursday the province will slap a 25 per cent levy on electricity shipped to 1.5 million Americans starting Monday. Ontario supplies power to Minnesota, New York and Michigan.
Ford said that so long as the president's threat of tariffs continue, Ontario's position would remain the same.
"This whole thing with President Trump is a mess," said Ford. "This reprieve, we went down this road before. He still threatens the tariffs on April 2."
WATCH | American liquor staying off LCBO shelves:
B.C. Premier David Eby meanwhile said his government is going ahead with a plan to levy fees on commercial trucks travelling from the U.S. through the province to Alaska.
He said Canadians won't let up until tariffs are taken off the table.
"Yet again the president is sowing uncertainty and chaos, attempting to undermine our economy by implementing tariffs and then pulling them," Eby said.
"We are going to ensure that the Americans understand how pissed off we are."
Matthew Holmes, the executive vice-president of the Canadian Chamber of Commerce, said Trump's delay "mitigates some of the economic damage" but it is "not a moment to celebrate."
He said Trump is treating the continental economy like "a toy to play with" and Canada has to hold out until tariffs are "taken off the table, without exception."
"We must inevitably be headed toward an updated, negotiated, lasting USMCA agreement that is respected on all sides. But in the meantime, Canada must keep standing up for ourselves," he said.
Tariffs on metals still coming
While Canada is getting at least a temporary break from a universal tariff that was supposedly tied to fentanyl and the border, Trump said Thursday he is pressing ahead with a previously announced 25 per cent tariff on all steel and aluminum imports next week. Canada is the leading exporter of both metals to the U.S.
Those more targeted tariffs are a major concern for Canada, given the last time Trump imposed similar tariffs on those metals there was a huge drop in Canadian exports, threatening jobs and businesses. According to Statistics Canada data, aluminum exports dropped by roughly half in 2019 as a result of Trump's trade action in his first term.
Trump also signalled there is trouble on the horizon for Canada's auto sector, which got a reprieve from Trump's tariffs yesterday. He said there will be no exemptions for Canadian and Mexican autos next month.
Trump's chaotic approach to trade has spooked the U.S. stock market with major indexes plunging again Thursday.
But Trump claimed he doesn't watch what the market is doing and it's "globalists" who are selling stock now because they are fearful of his "America First" agenda.
WATCH | Trump says tariff pause had 'nothing to do with the market':
New details about Trudeau-Trump call
Trudeau said his phone call with Trump yesterday was "colourful" with moments of tension as the two hashed out how to bring the American-led trade war to an end.
The prime minister acknowledged that the 50-minute conversation between the two men on Wednesday was heated, but said it was a "substantive" call and that there could be a resolution to these trade issues, at least in the short term.
But Trudeau said over the longer term, Trump seems committed to tariffs.
"We will continue to be in a trade war that was launched for the U.S. for the foreseeable future," he told reporters.
A senior government official told CBC News that Trump used profanity more than once while discussing dairy products on Wednesday's call, a longtime trade irritant for the U.S. Trudeau did not use profanity, the official said.
Trump also became animated when discussing fentanyl, the official said.
Trudeau stressed that the U.S. government's own border seizure data shows Canada is not much of a problem and that the country is doing all it can to tamp down on the drug, the official said.
WATCH | Trudeau says Canada committed to fighting back:
The government official said Trump and Vice-President JD Vance, who was also on the call, then pushed back hard on Trudeau's defence, saying seizures is not the right way to measure this problem. Trudeau said there's no other way to actually quantify the problem, the official said.
The official said the Trump call did end in a somewhat friendly manner, as Trump said on social media. The leaders agreed their officials should discuss the possibility of Trump exempting all CUSMA-compliant products from tariffs and what Canada might be willing to offer in return.