US President Donald Trump on Thursday postponed certain tariffs aimed at Canada following a similar decision regarding Mexico, prompting Ottawa to suspend forthcoming countermeasures. These actions are anticipated to provide relief to businesses and customers following the backlash on financial markets.
Canadian Finance Minister Dominic LeBlanc declared that Canada had halted a second round of retaliatory tariffs following Trump’s suspension of certain tariffs.
Justin Trudeau had intended to impose an additional $125 billion in tariffs on American goods such as electric vehicles, fruits and vegetables, dairy, beef, pork, electronics, steel, and trucks within the next 21 days.
Stock markets fell sharply after Trump’s tariffs of up to 25 percent were implemented Tuesday, with economists cautioning that these sweeping taxes could hinder US growth and increase inflation, although the Trump administration claimed it would not heavily disrupt the American market.
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On Thursday, Trump signed orders to postpone the new tariffs on Canadian and Mexican imports under a North American trade agreement, although he rejected any notion that his actions were related to market instability.
Conversely, two Canadian government representatives informed the Associated Press that Canada’s initial set of C$30 billion in retaliatory tariffs on U.S. goods will stay intact due to prevalent worries about a trade conflict.
Though Trump received a reprieve, Canadian Prime Minister Justin Trudeau stated that Ottawa will continue its trade conflict with Washington for “the foreseeable future,” even if there are “pauses for specific sectors.”
“Our aim continues to be the elimination of these tariffs, all tariffs,” he said. Ontario Premier Doug Ford stated that the province will increase electricity prices by 25% for 1.5 million Americans due to Trump’s tariff strategy. Ontario supplies electricity to Minnesota, New York, and Michigan. Ford stated that this tariff will stay in effect despite Trump’s short-term relief.
