Canada delays second wave of tariffs on US goods until April 2

Canada has decided to delay the second phase of tariffs on over 4,000 U.S. goods until April 2, as announced by Canadian Finance Minister Dominic LeBlanc.

“The United States has agreed to suspend tariffs on USMCA-compliant exports from Canada until April 2. As a result, Canada will not impose the second wave of tariffs on $125 billion worth of US goods until then, while we continue efforts to eliminate all tariffs,” LeBlanc stated, Caliber.Az reports via foreign media.

This decision follows an executive order signed by US President Donald Trump, which temporarily exempted Mexican and Canadian goods covered by the USMCA from the 25 per cent duties related to illegal immigration and fentanyl trafficking until April 2.

Trump explained his move on Truth Social, stating, “I did this as a concession and out of respect for Mexican President Claudia Sheinbaum.” He also thanked Sheinbaum for her cooperation in addressing issues at the border and combating the distribution of fentanyl.

Under the USMCA agreement, many goods traded between Canada, Mexico, and the US are duty-free, as long as they meet the specified rules of origin and other standards. However, since Tuesday, the US has imposed a 25 per cent tariff on goods from Mexico and Canada, as well as an additional 10 per cent duty on Chinese imports. Trump has cited concerns over inadequate efforts by Mexico and Canada to stop fentanyl shipments entering the US as the reason for these tariffs.

U.S. Commerce Secretary Howard Lutnick remarked that the current tariff measures should not be seen as part of a trade war, and emphasized that both the US and its neighbours have made significant progress in addressing immigration and drug trafficking issues.

At the signing of the executive order, Trump expressed confidence in their progress, stating, “We’ve made tremendous progress on both fronts,” referring to efforts to curb illegal immigration and the flow of fentanyl.

Trump is expected to unveil a plan for reciprocal duties on countries worldwide by April 2.

By Tamilla Hasanova